State subsidy for dairy producers over 2007 might be increased from 9 to 11 million leva, Agriculture and Food Minister Nihat Kabil said after a meeting with cattle-breeders from the country, who were protesting against the low direct subsidies for milk.

Eleven million leva would be enough for the first three months of 2008, after which possibilities to help dairy producers regarding fodders would be sought, Kabil said as reported by mediapool.bg.

He announced he would present to the Council of Ministers a report with detailed accounts of the condition of cattle-breeding.

Kabil also said he had issued an order to create a work group, which would discuss the problems of dairy producers. The group would include representatives of the dairy producers and the State Fund Agriculture.

The initiative committee of the protesting producers proposed at the meeting that an advisory council on milk be created. Before meeting the protesting farmers minister Kabil said their demands were too high and said that over 300 million leva would be necessary to meet demands.

The farmers want a full-year subsidy of 50 stotinki per litre of cow milk and 60 stotinki per litre of buffalo and sheep milk, as well as relief funds for the breeding of the animals. Currently the purchase price of milk is about 50 stotinki.

Aid to farmers in Bulgaria should not be mechanically compared to aid given in other EU member states, Kabil said in response to protesters explaining how dairy production in other EU member states was subsidised. The start situation in Bulgaria was different, Kabil pointed out.

However, he added that the dairy sector in Bulgaria did not receive enough funding, mediapool.bg said.