State aid: Commission approves €9.35 million Latvian scheme to support operators in the poultry sector affected by coronavirus outbreak

The European Commission has approved a €9.35 million Latvian scheme to support primary producers of eggs and poultry and companies processing eggs, poultry and their products in the context of the coronavirus outbreak. The scheme was approved under the State Aid Temporary Framework. The scheme consists of two measures: (i) support in the form of direct grants to partially cover the loss of income brought about, among others, by the need to send fresh products to processing; and (ii) support for uncovered fixed costs which have not decreased during the pandemic, since the raising of poultry never ceased. The aim of the scheme is to help the beneficiaries continue their activities during and after the outbreak. The Commission found that the Latvian scheme is in line with the conditions of the Temporary Framework. In particular, with respect to the first measure, the aid will not exceed €225,000 per company active in the primary production of eggs and poultry, nor €1.8 million per company active in the processing of eggs, poultry and their products, as provided by the Temporary Framework. As regards the second measure, the aid will not exceed €10 million per beneficiary. Finally, the overall scheme will run until 31 December 2021. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the scheme under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.62706 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.