Belgian dairy farmers to receive €46 million

Belgian dairy farmers will be able to count on a one-off contribution of about €46 million to give the industry a much needed boost. The country's pig farmers will receive about €30 million in aid. The news comes following an agreement between the agricultural organisations, distribution sector and other dairy and pig farming industry partners, VRT Nieuws reported on Monday.

The agreement was reached after several weeks of negotiations, which started last month after the farmers’ union Boerenbond campaigned to recruit members of the public to their cause of obtaining a fair price for milk from supermarket chains. Both dairy and pig farmers in Belgium have been forced to sell their products at too low prices for too long, according to the union.

The total amount of €76 million is a contribution from the agricultural industry and supermarkets to the farmers, but it is not enough for the farmers to cover their entire losses, according to Boerenbond president Piet Vanthemsche.

Supermarkets may or may not pass the cost along to their customers. "The additional charge may be recovered at the checkout, with consumers paying a tiny bit more," says Vanthemsche. But in some cases the supermarket will absorb the extra cost in their margins, he added.