Dairy sector claims power outage cost producers “at least €3 million”

Confederation calls on government for compensation

Monday’s nationwide power outage cost Portugal’s dairy sector “at least €3 million”, Confragi, the confederation of agricultural cooperatives has claimed today, calling on the government to compensate producers.

Confragi president, Idalino Leão, explains there were producers who “had to throw milk away because they didn’t have the storage conditions.

The extraordinary circumstances of the day meant that milk that was collected from producers was collected later than it should have been, which caused bottlenecks at the factory “because the quantity was such that it caused some constraints”.

“By our accounts, these constraints could be around €3 million,” he said, speaking to reporters on the sidelines of a seminar held at the Ovibeja agricultural fair in the Alentejo.

When it came to agriculture, the livestock, milk, dairy and meat sectors were the most affected by Monday’s outage.

“We’re talking about perishable products, where the cold chain is fundamental to their functionality and labour continuity,” and the electricity supply on Monday “was interrupted for 12 hours,” he stressed, adding that losses also occurred in the meat sector because “slaughtering and processing plants had to close down” due to a lack of energy for the refrigeration systems – but in this case, damages have not yet been accounted for.

Thus, while a loss survey is still being carried out, the estimate of €3 million in the dairy sector covers losses recorded by producers, the logistics chain, and the industry.

“Authorities are already aware of these losses”, he added, saying he hopes the government will “take a sensitive look” at the situation.

“There are many costs accounted for that must be compensated,” he said.

Elsewhere, the Portuguese Association of Meat Producers (APIC) has also called for a helpline to be set up and for energy companies not to be allowed to claim ‘force majeure’ when faced with claims resulting from the blackout, which led to animals no longer being sent for consumption.

Lusa

Natasha Donn
Natasha Donn

Journalist for the Portugal Resident.

Related News