cow, krave, milk.jpg
Photograph: Photo by Maciej Lewandowski, used under CC BY-SA

The government on Wednesday adopted a decision on the payment of HRK 27.6 million to milk producers which should be allocated no later than 30 June in an effort to relieve the difficult situation in the dairy sector.

Half of that amount has been provided by the European Union with the other half coming from the state budget, Agriculture Minister Davor Romic said. He explained that this was a form of aid to cattle farmers as a temporary measure due to the poor situation and market disruptions in the dairy sector.

All legal and physical persons who were beneficiaries of incentives for milk producing cows in 2015 are eligible for the assistance.

The European Union has provided HRK 13.8 million  (HRK 1.8 mill euro)  for this purpose and the European Commission has obliged Croatia to provide the same amount which has been secured from the state budget. A total of HRK 27,651,527.44 (3.6 million euro) is to be paid as aid to the dairy sector.

The government also adopted a regulation on the financial structure for direct payments in 2015 which defines the structure of supplementary national direct payments or Croatia's shares in financing.

A little less than HRK 1.9 billion has been secured in the state budget to cover direct payments to farmers and for rural development measures.

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