The EU has decided to award compensation to fruit and vegetable growers that are affected by the current Russian embargo on imported European food. Produce such as peppers, tomatoes, cucumbers grapes and pears will be given away to schools as they cannot be sold to Russian traders whilst the ban exists.
Multi-million Euro Fund
€125m (£100m) will be plunged into helping those that will be unable to sell produce because of the ban which Russia has enforced in retaliation against the EU and US sanctions over conflict in the Ukraine. Problems have arisen as crops are abundant at this time of year and many cannot be stored to be sold later. The fund aims to pay peach and nectarine farmers the equivalent of 10% of the value of their crops with further funding being extended to farmers of other fruits and vegetables.Agriculture Commissioner Dacian Ciolos said, “All farmers of the concerned products – whether in producer organisations or not – will be eligible to take up these market support measures where they see fit.”
Hitting back at Western economic sanctions, on 7th August this year, Russia announced a one year ban on meat, fish, dairy, fruit and vegetables originating from the EU, America, Canada, Australia and Norway. Besides forcing the Russian population to dream up some pretty imaginative recipes with what’s left in their larder, this ban will have some serious repercussions for EU farmers, as last year €1.07bn worth of fruit was exported to Russia alone.
Trouble in Store
UK stores will also be affected by the ban, and shops including M&S and WH Smith that have a presence in Russia will lose out. However, these stores plan to sell goods intended for the Russian market in Britain and could even benefit consumers. According to Schroders economists Azad Zangana and Craig Botham, “”The banning of these exports does not mean the goods will not be sold or consumed elsewhere. Households are likely to benefit from the fall in food prices, helping free up income for other spending.”
Sinclair Banks, the boss of Lunar, a fishing firm that exports 16% of its business to Russia told the BBC that”It will have a big impact on business.” Smaller businesses are feeling the impact of the ban and Shropshire cheese maker, Belton Cheese, has already had to cancel a £30,000 order due to be delivered to Russia. Although a new connection, the exportation of cheese to Russia was predicted to bring in £2m of business over the next three years; this plan is now heavily jeopardised.
Food Stuffs Covered by Compensation
The EU compensation will partially reimburse growers of apples, pears, kiwis, grapes, red berries, tomatoes, mushrooms, gherkins, cucumbers, white cabbage, carrots and peppers.
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Carol Smith has been a freelance copywriter for several years, producing articles for clients including personal injury solicitors Burnley ,construction companies. Before she became a copywriter, carol was a cleaner and a barman, but always wanted to write for her career.