Romania likely to have mutual funds to take up agriculture losses in a few months
Romania, in a few months, is likely to have mutual funds that will take up certain risks and losses which are not currently being covered by the insurance companies, Minister of Agriculture and Rural Development Daniel Constantin told a Wednesday working meeting examining the losses incurred by the producers in the wake of the milk market crisis.
‘The agriculture ministry will step up a range of measures in the upcoming period. Firstly, we need legislation that should set up the mutual funds in Romania and I mean those who cover the risks, or the economic losses or other kind of losses, which are not being covered by the insurance companies. Such mutual funds are operational across Europe and I think it is high time that we set up such funds in Romania too. /…/ Legislation is being put to public debate and I hope we’ll have the funds set up in a few months, maybe even faster. It is a three-fold responsibility, of the producers first and foremost, since they must contribute too, but also of the member state, i.e. Romania and it is the EU contribution, on the other hand. Had we had mutual funds, today we wouldn’t have spoken of such economic losses, because they would have been borne by the mutual funds’, Constantin stressed.
The minister met the milk processing firms and producers to examine the losses they sustained and find the solutions in the period immediately ahead.
Attending the event were the Romanian Employers Association in the Milk Industry (APRIL), the Romanian Federation of Cattle Breeders, Holstein RO Association, the Association of the Romanian Simmental-type Cow Breeders and the General Association of the Romanian Bull Breeders.