Prime Minister Nicolae Chuke announced on Tuesday after consultations with representatives of farmers’ associations that farmers will receive compensation of 43.6 million euros per year for damages caused by the war in Ukraine. Financial assistance will be provided in two stages. The government also announced a reduction in the price of drinking milk for six months.

“To support farmers and the milk market, financial assistance will be provided in two stages. The first payments will be made starting on May 15, 2023, for requests of EUR 21.6 million submitted by dairy farmers until March 23, 2023. After that, a second session will be organized for the submission of requests, the payments of which will be made, for these requests, in the second half of 2023. The government will match the value of the allocated funds to economic realities, and as a result of a better calculation of the amounts given to the livestock sector, farmers will receive compensation in the amount of 22 million euros for the damages caused by the war in Ukraine,” the Romanian government said in a press release.

In addition, to support Romanian processors in the food industry, according to the government communique, the measure according to which processors receive a 10% premium on the value of products processed in Romania will be improved and adapted as soon as possible.

The draft normative act is already under consideration and discussion in the parliament.

“Program for schools” and “Hot meals in schools”

At the same time, in order to stimulate the use of milk and healthy nutrition, the Government will expand and develop the “Program for schools” and “Hot meals in schools” from the next academic year. Thus, draft regulations will be prepared regarding the distribution of dairy products to children every day in classes, and not only three times a week, as was the case before, but also for updating the prices of packages that children will use and streamlining purchase procedures. The government is also preparing to increase the number of schools in which students who attend classes receive a hot meal or a grocery kit.

The price of drinking milk will be reduced for six months

According to the results of the consultations held in the Victoria Palace, the Government, representatives of processors and a chain of large stores agreed on a reduction in the price of consumer milk for a period of six months. This measure benefits the end consumer and stimulates demand in the milk market, which will indirectly support farmers and processors.

“I am glad that together we managed to find a number of solutions to unblock the milk market. But we all know that long-term measures are needed. At the government level, we are working on a program for the development of the agricultural sector and the food industry, which will highlight Romania’s potential and guarantee food security for our citizens,” Prime Minister Nicolae-Ionel Chuke said.

Consultations between farmers, processors and supermarket chains will continue at the level of the Ministry of Agrarian Policy.

We will remind, on Friday, thousands of farmers protested across the country due to dumping prices for Ukrainian agricultural products and prices for dairy products and milk in chain stores. They are also unhappy with the solution the European Commission has found to address the problems and imbalances facing Romania’s agri-food sector amid the challenges caused by the armed conflict in Ukraine. In some cities or towns, farmers came out with their tractors, making traffic difficult.