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EU to help stricken poultry farms

European Union agriculture ministers have approved a subsidy package for poultry farmers hit by falling sales and prices due to bird flu.

The European Commission will cover half the costs incurred by EU governments.

Farmers will be eligible if they can prove that bird flu led to a slump in demand for their poultry.

EU data show that poultry sales have fallen by up to 70% in some EU countries, while prices have slumped by 13% on average.

Poultry sales are especially weak in Italy, Greece and Cyprus.

Italy and France have already said they will make a total of 163m euros ($200m; £113m) available to their farmers.

Previously EU aid could only be used to help farmers hit by an outbreak of bird flu on their property, or who could not sell produce because of veterinary restrictions.

Speaking in Luxembourg, EU Agriculture Commissioner Mariann Fischer Boel said farmers could now apply for subsidies to compensate for "market disturbances" arising from the bird flu scare.

Ten EU countries, including France and Italy, had urged the EU to pay more than 50%, but failed to persuade the other 15 countries, diplomats said.

The lethal H5N1 strain of bird flu has spread to 13 EU countries - and in Germany and France some cases have been found on poultry farms.

H5N1 has killed more than 100 people since 2003 - mostly in Asia.

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