State aid: Commission approves €13 million Latvian scheme to support pig farmers affected by coronavirus outbreak

Source: EU Commission  

The European Commission has approved a €13 million Latvian scheme to support pig farmers in the context of the coronavirus outbreak. The scheme was approved under the State Aid Temporary Framework. The scheme consists of two sub-measures: (i) support in the form of direct grants to partially cover the losses caused by the decrease in demand of pork and live animals and the subsequent oversaturation of the market; and (ii) support for uncovered fixed costs. The aim of the scheme is to help the beneficiaries continue their activities during and after the outbreak. The Commission found that the Latvian scheme is in line with the conditions of the Temporary Framework. In particular, with respect to the first measure, the aid will not exceed €225,000 per beneficiary, as provided by the Temporary Framework for companies active in the primary production of agricultural products. As regards the second measure, (i) the aid will not exceed €10 million per beneficiary, and (ii) it will available to undertakings facing a decline in turnover during the eligible period of at least 30% compared to the same period of 2019. Finally, support under the overall scheme will be granted no later than 31 December 2021. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the scheme under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.62631 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.

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