Irish farmers seek EU compensation for BSE crisis

One of Ireland's main farm unions said today it was seeking £150 million compensation from the European Commission for losses…

One of Ireland's main farm unions said today it was seeking £150 million compensation from the European Commission for losses related to the mad cow disease crisis.

The Irish Creamery Milk Suppliers' Association (ICMSA) said proposals to counter the crisis were a disaster for Ireland, and called for direct financial compensation to farmers for losses already incurred and those still to come.

European farm ministers meet next week to discuss an emergency plan put forward by EU Farm Commissioner Mr Franz Fischler which includes extending a so-called purchase for destruction scheme until the end of 2001.

Under the scheme - which aims to counter a slump in beef prices caused by lower consumer demand in the wake of the crisis - surplus older cattle are bought from farmers and destroyed.

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"We view purchase for destruction as a form of compensation but we feel it doesn't totally fill the gap between the loss in income and what Irish farmers are suffering," said a spokeswoman for the ICMSA.

The ICMSA estimates Irish beef producers have lost around £35 million since the beginning of the current BSE crisis, a figure other unions said was conservative.

Before purchase for destruction was introduced in Ireland in January many farmers were forced to sell their cattle cheaply.

But the IFA, which represents around 85,000 farmers, said it had no plans to look for compensation retroactively.

"Our priority is that beef prices are maintained at the 90 pence a pound level. We are keeping the situation under review," an IFA spokesman said today.

Ireland has had 597 reported BSE cases in 8 million cattle over 12 years.