State aid: Commission approves €12 million Lithuanian scheme to support companies active in poultry production and processing sectors affected by coronavirus outbreak

The European Commission has approved a €12 million Lithuanian scheme to support companies active in the poultry production and processing sectors that have been particularly affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The public support, which will take the form of direct grants, will be open to poultry producers and to poultry processing companies. The aid aims at ensuring sufficient working capital for those primary producers that suffered losses of at least 5% in total average income in October 2020 compared to October 2017-2019 and processing companies that suffered losses of at least 5% in total average income from July to September 2020, compared to the same period in years 2017-2019. The purpose of the scheme is to help the beneficiaries address their liquidity needs and continue their activities during and after the outbreak. The measure is expected to support more than 1,000 enterprises. The Commission found that the Lithuanian scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed €100,000 per company active in the primary agricultural production sector or €800,000 per company active in the processing of agricultural products and (ii) the scheme will run until 31 December 2020. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measures under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.58856 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.