PARIS – The European Union's plan to cut in half export subsidies for poultry meat have raised concerns about the viability of some French poultry firms, according to Reuters.
The EU recently published on Jan. 18 a regulation that would halve export subsidies for poultry meat after EU countries failed to reach an agreement on the matter on Jan. 17, according to Reuters. The new subsidy level is 10.85 euros ($14.46) per 100 kilograms of poultry meat from 21.70 euros ($28.92). The rate in October was 32.50 euros ($43.31), Reuters reported.
French agriculture officials believe the move could threaten the recovery of troubled French poultry firm Doux, based in Chateaulin, France. The company is in administration. Doux received 55 million euros ($73.3 million) under the subsidy plan in 2011, according to Reuters. Tilly-Sabco, another French poultry company, received 19 million euros ($25.3 million).
Reuters reported that the French agriculture ministry held emergency meetings with executives from both companies to discuss the impact of the subsidy cut.
Doux, a family owned operation with an 80 percent stake in the company, is one of the world’s largest poultry exporters. The company was placed in administration on June 1, 2012 after suspending payments to its creditors.
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