The establishment of the fund reflects the Commission recognition of the particular challenges facing the Irish beef and veal sector due to market uncertainty and an unprecedented and sustained period of low prices. This exceptional measure, provided under the Common Market Organisation of the Common Agricultural Policy (CAP), will offer support to the Irish farmers affected.

Due to the drop in prices, with a fall in margins estimated at 11 to 19% in the past year for the beef and veal sector, the Irish authorities have calculated that beef farmers have lost just over €100 million.