The governing body of the European Commission decided to compensate vegetable growers who have been adversely affected by the E.coli infection. Hungarian farmers have now received the full amount of the 1.5 million Euro compensation they requested.

A total of 428 growers and 6 Producer's Sales Organisations (Hun: TÉSZ) lodged requests for damages with the Office of Agriculture and Rural Development in relation to damaged incurred between May 26 and June 30. Support was requested in connection with the removal from the market of 4511 tons of vegetables (primarily cucumbers and sweet peppers). The total sum of the compensation claims is 1 million 515 thousand 586 Euros, more than 400 million Forints. (955 thousand 849 Euros go towards aiding non-TÉSZ member growers, while 559 thousand 737 Euros will be distributed by the TÉSZ organisations).

The Commission raised the sum of compensation from 210 million to 227 million so it would not have to apply a redistribution rate, meaning the level of compensation will be 50% of the average vegetable sale price for the period 2007-2010.

How much compensation will be paid out per crop type?

Distribution of the compensation must be completed before October 15. The majority of claims arrived from Békés county (66%), Bács-Kiskun county (13%) and Csongrád county (10%).

As has previously been reported, Ministers changed the original schedule and discussed the crisis that had developed as a result of the E-coli infection at the informal meeting of the Agricultural Council of the European Union on May 31, chaired by Sándor Fazekas. Following these discussions, the Hungarian Minister convened an extraordinary council meeting to enable the body to come to an official decision.

At the meeting on June 7, the Ministers present agreed that all vegetable producers must be compensated. During the five-hour discussion the ministers asked Commissioner for Agriculture Dacian Ciolos to have the Commission raise the 150 million Euro compensation budget, increase the level of compensation and broaden the scope of compensation to include other vegetable crops.

The Commission accepted all of the Conclusions of the Council of Ministers and issued new recommendations within 24 hours: it raised the sum intended for the immediate aid of vegetable producers to 210 million Euros and – following a proposal by the Hungarian delegation – added sweet peppers to the cucumber, tomatoes and salad varieties already on the list of crops to receive compensation.

The Hungarian Presidency successfully saved the Union's vegetable sector through its rapid reaction and by coming to a decision in record time.

(Press Office of the Ministry of Rural Development)