The state subsidy of a total of 10.8 million leva for milk production of milk allowed by the European Commission (EC) was insufficient and would run out in a couple of months, dairy branch organisations representatives said at a news conference on January 24 2008.

Association of Dairy Processors in Bulgaria chair Mihail Tachev said that although the subsidy was small, if the Cabinet allocated more money, Bulgaria would be sanctioned.

That was why the Association called on the EC to annul the sanction and to support Bulgaria’s milk procession sector, Tachev said as quoted by the Bulgarian news agency BTA.

The association insists on speedier subsidy application procedures. Currently, the dairy producers have to wait until mid-March 2008 to receive means from a second state subsidy of 25 million leva. The money was supposed to be given to the farmers in the beginning of January, but the long procedure and complicated documentation delayed the transfers.