The Cyprus Agriculture Ministry has issued clarifications on the methodology used to calculate compensation for affected livestock farmers, following public comments over how payments are being determined.
In a statement, the Veterinary Services said the compensation categories for the value of animals that were culled were drawn up by committees appointed by the Director of the Veterinary Services, in line with the relevant legislation.
The ministry said the categories and prices were based, among other factors, on the animals’ market value, breed and genetic value, as well as their age and production status.
The process, it added, was based on documentation, with the active involvement of officers from the Agricultural Research Institute, as well as the participation of agricultural organisations and livestock farmers’ representatives through a Special Advisory Committee operating under the supervision of the Minister of Agriculture.
Regarding market value, the ministry said indicative invoices were submitted by farmers so that the compensation categories could be shaped on the basis of real market data.
The individual compensation for each culled animal was then calculated following an on-site assessment by three-member compensation committees, also appointed by the Director of the Veterinary Services. The final valuation was made on the basis of the categories set by the Maximum Price Committee, while also taking into account the specific characteristics of each animal.
In addition to compensation for livestock, farmers are receiving 100% compensation for the value of milk and animal feed that were seized and destroyed on site, based on recent invoices issued before the outbreak.
Examples for cattle farms
The ministry cited real examples of compensation paid to cattle farmers.
In one farm where 269 cattle were culled, €476,280 was paid for the loss of livestock. In addition, €22,632 is being added for the destruction of animal feed and €10,087 for the destruction of milk.
In another farm, where 195 cattle were culled, €350,000 was paid for the loss of livestock. A further €2,354 is being added for the destruction of concentrated feed and €4,741 for the destruction of milk.
Examples for sheep and goat farms
The ministry also gave examples involving sheep and goat farmers.
In one farm where 1,368 sheep and goats were culled, €306,569 was paid for the loss of livestock. A further €14,831 is being added for the destruction of concentrated feed and €32,206 for the destruction of milk.
In another farm, where 212 sheep and goats were culled, €47,489 was paid for the loss of livestock. In addition, €7,493 is being added for the destruction of concentrated feed and €286 for the destruction of milk.
In a third case, where 83 sheep and goats were culled, €15,995 was paid for the loss of livestock. Compensation for hay is also being added. The farmer in question did not destroy any milk and therefore no milk compensation is being added.
The ministry recalled that compensation prices range from €47 to €420 for sheep and goats, from €150 to €2,500 for cattle, and from €35 to €5,000 for pigs. Payments began on 13 May and the aim is for them to be completed within May.
Additional support for farmers who restart
The ministry said farmers who wish to resume operations will also receive income-loss support for at least 12 months, until their units return fully to production. This support will take into account labour costs, fixed expenses, social insurance contributions, financial obligations and other needs, so that it is fair and based on farmers’ real circumstances.
They will also receive support to rebuild their livestock with animals of high genetic value under a state aid scheme. The criteria and financial parameters of the scheme for obtaining genetically improved livestock will be based on the findings of the Special Scientific Committee chaired by Dr Malas.
Financial support will be determined on the basis of each animal’s genetic value, productivity, age and other characteristics, with a maximum value set for each category. In cases where that amount exceeds the compensation already received for culling, the state will subsidise the difference at a rate to be determined.
The cost of feeding the animals acquired under the reconstruction scheme will also be covered for the period during which they are not contributing to the farmer’s income.
The ministry also said a public officer will be assigned to each farmer to provide support and guidance in rebuilding their unit, with the aim of ensuring that the next stage is planned in a proper, viable and safe way.
Overall support for livestock farmers is estimated to exceed €35.6 million.
