In the Government Meeting, the Ordinance regarding the establishment of a state aid scheme to support pig and poultry breeders has been approved for the period from August 1, 2022, to August 31, 2023, in the context of the crisis caused by Russia's aggression against Ukraine.

This legislative act aims to establish a temporary state aid scheme to support pig and poultry breeders during the crisis caused by Russia's aggression against Ukraine, valid until June 30, 2024, to compensate for losses incurred due to the increase in prices for fodder, fuel, and other costs.

The total amount that can be granted for each enterprise engaged in primary agricultural production does not exceed the equivalent of 280,000 euros in lei.

The maximum total value of the state aid scheme is 126,694,400 lei, equivalent to 25.6 million euros for the pig sector and 151,934,300 lei, equivalent to 30.7 million euros for the poultry sector.

The exchange rate for the euro/lei used to calculate the maximum total value/amount is that communicated by the National Bank of Romania on August 1, 2023, which is 4.9334 lei/euro.

The beneficiaries of the scheme can be:

a) Legal entities, individual or family enterprises, authorized individuals, and agricultural companies established under Law no. 36/1991 on agricultural companies and other forms of association in agriculture, with subsequent amendments, engaged in the fattening and/or reproduction of pigs between August 1, 2022, and August 31, 2023;

b) Legal entities, individual or family enterprises, authorized individuals, and agricultural companies established under Law no. 36/1991 on agricultural companies and other forms of association in agriculture, with subsequent amendments, engaged in the reproduction and/or incubation and/or raising of poultry for meat or eggs between August 1, 2022, and August 31, 2023.

The eligibility conditions for potential beneficiaries are as follows:

• Have a sanitary-veterinary authorized farm/farms at the time of submitting the state aid application;
• Have engaged in the raising and/or reproduction of pigs between August 1, 2022, and August 31, 2023, in sanitary-veterinary authorized farms;
• Have engaged in the reproduction and/or incubation and/or raising of poultry between August 1, 2022, and August 31, 2023, in sanitary-veterinary authorized farms.

State aid is granted to beneficiaries based on the production capacity under minimal welfare conditions held by the beneficiary between August 1, 2022, and August 31, 2023, in terms of livestock units (LU), depending on the categories of pigs/poultry.

The proposed amount for state aid is 100 euros/LU, equivalent in lei, and the conversion coefficients are provided in Annex 1 to Regulation (EU) 2018/1091 of the European Parliament and of the Council of July 18, 2018, namely: 0.3 LU for fattening pigs, 0.5 LU for breeding pigs, sows, and gilts, 0.007 LU for broilers and hatched broilers, 0.03 for turkey poults and hatched turkey poults, as well as 0.014 LU for replacement young and laying hens, replacement young and breeding poultry, and heavy-breed hens.

The exceptional aid concerns about 250 potential beneficiaries in the pig sector, with approximately 260,000 LU production capacity, and about 310 beneficiaries in the poultry sector, with approximately 310,000 LU production capacity.

The submission period is 30 working days from the date of entry into force of this ordinance, and the payment deadline is June 30, 2024.

The funds come from the state budget within the limits of the budget provisions approved by the Ministry of Agriculture and Rural Development for the year 2024.