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French farmers escalate blockades over price squeeze France offers angry farmers emergency aid
(about 2 hours later)
Farmers in north and west France have blocked roads in protest at falling prices, hours before the government was due to announce emergency aid. The French government has proposed a €600m (£420m; $655m) package of urgent aid for farmers, who have blocked roads for days in protest at falling prices.
At one point the A1 motorway was partially blocked south of Lille, as farmers warned of more action if the measures did not go far enough. Most of the money will help farmers deal with a cash crisis by cancelling or deferring tax payments. But some of the money will help restructure debts.
Major roads were also blocked around Caen and Poitiers. Farmers, who have been protesting for weeks, say they will consider the plan.
Farmers accuse supermarkets and the food industry of keeping prices low, forcing many of them into bankruptcy. They accuse supermarkets and the food industry of keeping prices low, forcing many of them into bankruptcy.
Farmers' union president Xavier Beulin has told the government to go further than the "trivial measures" it has so far implemented. One farmers union leader in Normandy said the measures did not go far enough but another union leader, Xavier Beulin of the FNSEA, said ministers were moving in the right direction.
President Francois Hollande intervened in the dispute on Tuesday and Agriculture Minister Stephane Le Foll promised to look at subsidies to ensure that "aid goes to farmers with financial difficulties". "We've just accepted measures for Greece; I reckon we can do something for French farmers," Mr Beulin said, equating his members' struggle with the eurozone debt crisis.
But Mr Beulin said he was seeking better labelling of French produce, improved contracts and greater focus on debt restructuring for farmers. Major roads have been blocked near Poitiers in the west, but the farmers' anger was most visible in Normandy and Brittany.
"There's a sort of exasperation and anger that's been escalating for weeks. This hasn't come out of nowhere," he told France Info radio (in French).
That mounting frustration was evident in several areas of Normandy and Brittany in particular.
Some 200 farmers attacked a supermarket in the Breton town of Lannion late on Tuesday night, dumping manure at the entrance and setting alight to tyres.Some 200 farmers attacked a supermarket in the Breton town of Lannion late on Tuesday night, dumping manure at the entrance and setting alight to tyres.
The Socialist government estimates that 10% of French farms could be facing bankruptcy and is studying an independent report it commissioned on pricing in the food industry. Mr Beulin had earlier accused the government of adopting only "trivial measures", warning there was "a sort of exasperation and anger that's been escalating for weeks. This hasn't come out of nowhere".
President Francois Hollande called a cabinet meeting over the crisis after farmers partially blocked the A1 motorway south of Lille, threatening more severe action if ministers failed to come up with a satisfactory response.
Announcing a list of 24 measures, Prime Minister Manuel Valls said €100m of taxes would be annulled and a further €500m would be set aside to allow farmers more time to pay taxes and other debts.
A fund to help farmers restructure their debts would be increased from €8m to €50m and the public investment bank (BPI) would guarantee up to €500m in loans to the farming sector in a further attempt to alleviate the cash crisis.
"The demonstrations of the past days reflect the anguish and distress that we have seen for some time. We want to respond to this anguish," the prime minister said.
The Socialist government estimates that 10% of French farms could be facing bankruptcy.
Last month, ministers pushed the food industry to raise the prices paid to farms but Mr Foll said last week that pork producers were still being paid below the target price of €1.40 (£1) per kilo.Last month, ministers pushed the food industry to raise the prices paid to farms but Mr Foll said last week that pork producers were still being paid below the target price of €1.40 (£1) per kilo.
Dairy farmers say they are being paid €300 per tonne of milk and need at least €340 to break even.Dairy farmers say they are being paid €300 per tonne of milk and need at least €340 to break even.
"I solemnly call on industry and major suppliers to respect the increase in prices that they committed themselves to. There cannot be a frantic rush to low prices," Mr Valls told reporters.
Supermarkets and suppliers are being blamed for not passing on the recent price rises on meat and dairy products. But prices have been pushed down by foreign competition and reduced meat consumption.Supermarkets and suppliers are being blamed for not passing on the recent price rises on meat and dairy products. But prices have been pushed down by foreign competition and reduced meat consumption.
A Russian ban on EU food imports and reduced Chinese demand have added to the problems.A Russian ban on EU food imports and reduced Chinese demand have added to the problems.