Information communicated by Member States regarding State aid granted under Commission Regulation (EC) No 1857/2006 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production of agricultural products and amending Regulation (EC) No 70/2001
Date: 2008-04-15
Institutions: European Commission
Subjects: State aid, United Kingdom, agricultural holding, aid to agriculture, control of State aid, exchange of information, small and medium-sized enterprises

C 93/8

EN

Official Journal of the European Union

15.4.2008

Information communicated by Member States regarding State aid granted under Commission
Regulation (EC) No 1857/2006 on the application of Articles 87 and 88 of the EC Treaty to State
aid to small and medium-sized enterprises active in the production of agricultural products and
amending Regulation (EC) No 70/2001

(2008/C 93/06)

XA Number: XA 373/07

Member State: United Kingdom

Region: Shetland

Title of aid scheme or name of company receiving an indi-
vidual aid: Shetland Cast Ewe Welfare Scheme

Legal basis:

Section 4 of the Small Landholders (Scotland) Act 1911

Commission Regulation (EC) No 1857/2006

Annual expenditure planned under the scheme or overall
amount of individual aid granted to the company:

Year

Expenditure

would allow a final breeding season. The necessity to move
these animals to the type of lush pasture found in the South of
England and Wales during August/September was not possible
due to the export restrictions mentioned above imposed by the
outbreak of FMD in the United Kingdom during that time.

The climate of Shetland is such that by October the grass has
stopped growing. As a consequence, with limited natural fodder
remaining, cast ewes' welfare is already beginning to suffer as
they lose condition. As the winter progresses, this situation will
worsen, and there will be serious welfare issues as animals
starve. The majority of farmers and crofters do not have the
wherewithal to kill and bury their cast ewes on-farm (indeed, so
thin is the soil above bedrock in much of Shetland burial
is
practically impossible). As there is now no market for these
animals if left they will suffer a protracted decline in condition
therefore culling is the most appropriate course of action on
welfare grounds.

2007-2008

Under GBP 50 000

Note: Shetland has an exemption which allows burial.

Maximum aid intensity: The aid will be limited to losses
caused by quarantine restrictions linked to a disease outbreak
that has been formally recognised by public authorities. The aid
intensity will not exceed 100 %

Date of implementation: 6 December 2007

Duration of scheme or individual aid award: The scheme
will run for ten weeks and will close on the 9 February 2008

Objective of aid:

The Shetland Cast Ewe Welfare Scheme will be open to Shetland
farmers and crofters facing animal welfare problems with cast
ewes as a result of export restrictions imposed following the
outbreak of foot and mouth disease in the United Kingdom. In
Shetland, this situation is particularly serious in the case of cast
ewes (ewes that are approaching the end of their breeding life in
Shetland) — these old animals would normally have been sold
and exported from Shetland by the end of September, destined
either for a final year breeding in the more clement climate else-
where in the United Kingdom, or to enter the food chain as
sheep meat. The foot and mouth disease export ban and move-
ment restrictions meant that the usual autumn markets for cast
ewes as either breeding stock or for consumption were not
available to Shetland during August/September.

The Cast ewes covered by this scheme are defined by their age
five years) and failing physiology they are broken
(over
mouthed,
lacking the teeth complement necessary to chew
anything but the very softest of fodder. Supplementary feeding
therefore cannot provide them with nutrition required which

Producers will be responsible for transporting eligible animals
(namely cast ewes that are at the end of their breeding life in
Shetland) to a central collection centre. The operators of the
collection centre will not pay producers for eligible animals.
The animals will not enter the human food chain but will be
transported to abattoirs for slaughter and subsequent disposal.
Competitive tendering will be used to provide these services on
behalf of
complies with
Article 10 of Regulation (EC) No 1857/2006 where the aid
must be limited to losses caused by diseases for which an
outbreak has been formally recognised by public authorities

the Scottish Government. This

Eligible costs:

Under the Shetland Cast Ewe Welfare Scheme, the operator of
the collection centre will be paid a total of GBP 10 per head for
each eligible animal, up to a limit of 5 000 animals in total.
This GBP 10 will cover the cost of slaughter of the animal in
question, the cost of burial at the Rova Head landfill site in
Shetland, and the cost of transport between collection centre
and abattoir, and abattoir and landfill site.

The operators of abattoirs and landfill disposal sites will be paid
for
the services involved in slaughtering and disposing of
carcases; these costs will be determined by competitive tender
the
for the abattoir and will be paid by the operators of
collection centre. This complies with Article 10 of Regulation
(EC) No 1857/2006 where the gross aid intensity must not
exceed 100 %.

15.4.2008

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Official Journal of the European Union

C 93/9

through this scheme or

Farmers and crofters will not receive any payment for cast ewes
disposed of
the costs incurred in
bringing them to the collection centre, thereby avoiding over-
compensation issues, and not providing an incentive for culling
of animals for which another solution can be found

Sector(s) concerned:

The scheme applies exclusively to SME's keeping cast ewes in
Shetland. Cast ewes do not qualify for the previously notified
Scottish Welfare Disposal Scheme as this is aimed solely at light
lambs.

Eligible businesses must be classified as a ‘small or medium
this
sized enterprise’ which means that
scheme (as opposed to service providers) must have less than
250 employees, less than EUR 50 million annual turnover or
EUR 43 million balance sheet equity, and not be owned at a
rate of more than 25 % by other companies.

the beneficiaries of

Larger businesses and publicly funded government agencies are
not eligible to be beneficiaries of this scheme

Name and address of the granting authority:
Shetland Islands Council
6 North Ness Business Park
ZE1 0LZ Lerwick
United Kingdom
Contact Jon Dunn
Tel (44) 1595 74 49 51

Web address:
http://www.sdt.shetland.org/Schemes.aspx
Signed and dated on behalf of the Department for Environment,
Food and Rural Affairs (United Kingdom competent authority)
Duncan KERR
Agricultural State Aid
Department for Environment, Food and Rural Affairs
Area 8D, 9 Millbank
C/o Nobel House
17 Smith Square, Westminster
SW1P 3JR London
United Kingdom