Enhancement Livestock Premium Scheme launched

Environment Minister George Pullicino yesterday launched the Enhancement Livestock Premium Scheme, which is replacing the original Dairy Compensation Scheme, set up in October 2002.

The scheme, which would serve to promote local milk and beef, was being introduced to be in conformity with the EU's Common Agricultural Policy and would involve payment as a Slaughter Premium and Beef Special Premium, Mr Pullicino explained.

Payments under the Slaughter Premium had environmental advantages and encouraged heightened efficiency on farms by decreasing the cost for producers to remove from their herds those cows that did not produce enough in exchange for others.

The new scheme would also allow for fresh beef to be sold at more competitive prices, he said.

Under the Dairy Compensation Scheme, the money went directly to the farmers and herdsmen and not to the slaughterers.

Mr Pullicino said that, whereas export refunds had been removed for many countries that would be joining the EU, Malta and Cyprus were an exception. For Malta, the refunds on beef imported from the EU had been reduced by 15 cents - considered to be another advantage.

The refunds had been reduced to avoid more than normal levels of importation, Mr Pullicino said. EU membership would be opening the doors to importation from new markets, with which the Union had agreements - for example, beef from Argentina over the coming weeks - the minister said. This would also lead to more competition and consumers also stood to benefit in that they had the opportunity to buy fresh and good-quality products.

To further guarantee high-quality products, close collaboration was being carried out with the Koperattiva tal-Produtturi tal-Halib and four working groups have been set up to work on improvements in milk production, the milk processing plant, the market of milk products and beef.

Mr Pullicino said the ministry would be embarking on a campaign for the promotion of local milk in the coming weeks.

He said the local milk industry would be benefiting from a total of €2 million from the EU and the government over the next year.

Under the special market policy programme for Maltese agriculture, €1.1 million would be in the form of subsidies to make good for the removal of levies and €900,000 would be poured into restructuring, he said.

A further €350,000 are being provided for the improvement of a milk plant to reach European standards. Another €250,000 had been made available last year

The assistance from SNPPMA, which aimed at improving local produce, would be available until 2010, Mr Pullicino said, adding that financial assistance from the EU would continue to increase over the next 10 years, while the government's would decrease.