Wednesday, August 20, 2014

EU farmers complain €125mn compensation is just drop in the ocean

The €125 million in emergency EU support to its food producers may not be enough to cover the damage, as some estimates have it more than a hundred times higher.
On Monday, the European Commission announced €125 million in emergency funding for European farmers hit by the Russian trade ban
Economists at ING estimate the embargo could cost the European Union €6.7 billion ($9 billion) during a year of lost production. The report also sees 130,000 jobs at risk in the trade row between Russia and the West over Ukraine.
The European statistics office, Eurostat, said the ban - which bars meat, dairy, cheese, fruit and vegetables from all 28 EU member states, affects €12 billion ($16 billion) worth of EU exports, or 10 percent of the total.

Hit hardest will be Poland and Norway, both of which export over $1 billion in sanctioned foods to Russia, followed by the Netherlands and Spain, both which have strong trade ties with Russia. 

Spain already estimates it will miss out on €337 million in food and agriculture sales due to blocked access to the Russian market. The value of sanctioned food exports to Russia is $792 million, according to Russian Federal Customs data. 

In Zaragoza, Spain, fruit growers took to the streets dumping out excess produce and torched an EU flag. 

“This price compensation is not enough. Let’s say 20 jobs in our company will be lost. Our salaries will also be affected- then, we will just disappear,” a Spanish fruit farmer told RT.
Exporters may have to further slash prices, which have already fallen 80 percent in the fruit industry, or even throw away perfectly fresh produce that can’t be sent to Russia........................http://rt.com/business/181588-eu-russia-food-ban/
20/8/14
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