The Regional Secretary for Agriculture and Forestry announced that the Regional Government will take on the interest burden in order to continue the anticipated payment of the so-called "1.25 cent-aid" to farmers on São Miguel Island, representing approximately 2.6 million Euros. This measure contributes to the entry of more funds into the dairy sector.
 
"What we agreed on today was that the Regional Government is available to take on the interest burden, which will allow the Agricultural Association and Unileite to anticipate the payment of these funds to producers," said João Ponte. The government official spoke at the end of a meeting with the President of São Miguel Agricultural Association, Jorge Rita.
 
The Secretary for Agriculture considered that this is a "positive measure" because it will increase the income of farmers as well as the liquidity of farms.
 
As a result of the European Union's imposition, the so-called "1.25-cent aid" is no longer paid to the industry. It is now paid directly to milk producers under POSEI.
 
"In the specific case of São Miguel, it will cause very significant change as dairy factories were able to anticipate the payment of this support measure, which was included in the monthly payment of milk. With this change, producers would only receive upon the payment of POSEI aid," João Ponte said, adding that this would also lead to a decrease in the so-called "milk check."
 
In the case of Terceira Island, the industries only paid to producers when they received funds from the Regional Government. As for the remaining islands of the archipelago, given the small amounts, this change will not be reflected in the price of milk paid by local industries.
 
The so-called "1.25-cent aid" represents 3.8 million Euros for the Region, corresponding to the payment of 6.35 Euros per one thousand litres of milk.
 
João Ponte also revealed that this meeting with Jorge Rita also intended to assess the payments, such as the support to the transport of fertilisers, already under payment, as well as the regional compensation payments for the slaughter premiums amounting to 1.4 million Euros; the latter will be paid until April.
 
During the meeting, the government official formally delivered to Jorge Rita, who is also the president of the Azores Agricultural Federation, the document prepared by the Region regarding the future of the Common Agricultural Policy (CAP). It has been already delivered to the Minister of Agriculture, Forestry and Rural Development, Luís Capoulas Santos.
 
"This is an important document insofar as it was prepared with the contributions from the Azores Agricultural Federation and it defines the Region's position," said João Ponte. The government official stressed that the "EU support and aid are fundamental for the continuity and sustainability of agriculture in outermost regions such as the Azores," where production costs are increasing and the distance from markets is considerable.
 
The Regional Secretary also noted that he had already had the opportunity to discuss in Brussels and with the with the Minister of Agriculture the importance of quickly defining how the transition between the Community support frameworks will be made.
 
"Our wish is to maintain the situation of the previous framework, that is, to anticipate the allocation of funds from the next framework in order to prevent discontinuity in the payment of aid," said João Ponte.