The Ministry of Agriculture and Rural Development (MADR) has posted a draft Emergency Ordinance on decision transparency for the establishment of a state aid scheme to support pig and poultry breeders from August 1, 2022, to August 31, 2023, in the context of the crisis caused by Russia's aggression against Ukraine.

The total estimated maximum 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 proposed amount for state aid is 100 euros per UVM (Unitate de Măsură Standard - Standard Measurement Unit), equivalent in lei.

Conversion coefficients are provided in Annex 1 to Regulation (EU) 2018/1091 of the European Parliament and of the Council of July 18, 2018, as follows: 0.3 UVM for fat pigs, 0.5 UVM for breeding pigs, sows, and gilts, 0.007 UVM for meat chickens and hatching eggs, 0.03 for turkey poults and hatching turkey poults, as well as 0.014 UVM for replacement youth and laying hens, replacement youth, and heavy-breed hens.

The measure is based on the provisions of point 62 of the European Commission Communication amending the Temporary Framework for crisis and transition measures for state aid to support the economy following Russia's aggression against Ukraine.

Thus, a temporary state aid scheme will be instituted to support breeders in the pig and poultry sectors from August 1, 2022, to August 31, 2023, in the context of the crisis caused by Russia's aggression against Ukraine, valid until June 30, 2024, to compensate for losses due to the increase in prices for feed, fuel, and other costs.

Beneficiaries of the scheme can be:

a) Legal entities, individual or family enterprises, authorized individuals, as well as agricultural companies established under Law no. 36/1991 on agricultural companies and other forms of association in agriculture, with subsequent modifications and completions, that have carried out pig fattening and/or breeding activities from August 1, 2022, to August 31, 2023;

b) Legal entities, individual or family enterprises, authorized individuals, as well as agricultural companies established under Law no. 36/1991 on agricultural companies and other forms of association in agriculture, with subsequent modifications and completions, that have carried out poultry breeding and/or incubation and/or raising of chickens for meat or eggs from August 1, 2022, to August 31, 2023.

Additional information:

ELIGIBILITY CONDITIONS:

• Hold an authorized sanitary-veterinary farm/farms at the date of submitting the state aid request;
• Have engaged in pig breeding and/or reproduction activities from August 1, 2022, to August 31, 2023, in sanitary-veterinary authorized farms with a minimum number of animals equivalent to one production cycle capacity for fat pigs and/or with an average population of at least 30% of the farm's capacity for breeding farms;
• Have engaged in poultry breeding and/or incubation and/or raising activities from August 1, 2022, to August 31, 2023, in sanitary-veterinary authorized farms, for at least one series of meat chickens/turkey poults/hatching chicken eggs/hatching turkey poults and/or with an average population of at least 30% of the farm's capacity for laying hens (youth and adults)/reproduction farms (youth and adults).

State aid is granted to beneficiaries based on the production capacity under minimal welfare conditions held by the beneficiary from August 1, 2022, to August 31, 2023, equivalent to UVM, depending on the categories of pigs/chickens.

The total value that can be granted to each enterprise operating in the primary production of agricultural products does not exceed the lei equivalent of 280,000 euros.

The exchange rate for the calculation of the maximum total value/amount is the euro/lei exchange rate communicated by the National Bank of Romania on August 1, 2023, namely 4.9334 lei/euro.

Potential beneficiaries:

• 250 beneficiaries with a production capacity of 260,000 UVM in the pig sector;
• 310 beneficiaries with a production capacity of 310,000 UVM in the poultry sector.

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

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

The project can be consulted here: https://www.madr.ro/proiecte-de-acte-normative/8651-proiect-oug-porc-si-pasare.html.