The crisis caused by the coronavirus has brought the beef industry to the point of collapse, the Baby Beef association said on Tuesday, adding that Agriculture Minister Marija Vuckovic has promised 60 million kuna in support for the industry.

The association said that the industry was facing collapse and that is why they called for an urgent meeting with Minister Vuckovic, held last week. Vuckovic announced subsidies similar to those in other countries, notably Slovenia and France, in order to bail out the cattle breeding industry.

The Baby Beef association brings together bout 330 cattle breeders who account for 90 percent of the beef sector in the country and raise about 120,000 yearlings a year. About two-thirds of cattle are sold live to the Middle East or as meat to Italy while one-third is sold on the domestic market.

At the meeting, it was agreed that 60 million kuna (€7.9 million) would be paid to the industry in two instalments, with the first instalment at the end of this year and the second instalment by the end of February 2021.

That would cover part of our losses and would resolve the issue of current and future surpluses, the association said.

The association warned that the corona crisis has caused huge problems for cattle breeders who produce about 120,000 yearling beef each year and generate about 1.3 billion kuna (€172.4 million) in revenue.

The association said that, currently, producers have a surplus of about 30,000 yearlings and by the end of the year that could increase to about 70,000.

That is the result of excessive imports of beef from EU countries that subsidise their cattle breeding industry, and this has threatened our market, the association said.

The association said that as soon as the crisis broke out, Slovenia and France subsidised their produces with €100 per head.

Croatian farmers cannot compete with those prices, the association added.