The dairy sector appears to be the hardest hit due to the power outage and the subsequent refrigeration requirements, acknowledged José Manuel Fernandes during a visit to the Ovibeja agricultural fair in the Alentejo city.
When questioned by journalists about whether the government has an estimate of the sector’s losses, José Manuel Fernandes noted that the administration is still gathering data on the damages, which will subsequently be quantified.
“There are always losses,” he emphasized, adding that overall, there isn’t a significant impact. However, if the losses are broken down, “there might be cases that could challenge a small or medium-sized company or even a large enterprise.”
Regarding potential aid to the sector, the minister was uncertain if the government, being in a caretaker mode, can implement such measures, stressing that if it is possible, it will be a decision for the executive to make.
“Our goal is always to assist. When European funds are available, to utilize them, and if necessary, use the state budget, ensuring there is no duplication and complete transparency,” he stated.
José Manuel Fernandes advocated for the contractualization of insurance in the sector to address situations like power outages or calamities resulting from climate changes, hoping this issue “will increasingly be placed on the agenda.”
“We must prepare for the possibility of having insurance that responds to such situations, because, afterward, it seems like no one is at fault, leaving people with the losses and no means to compensate them,” he remarked.
The official has even supported enhancing “the European objective of insurances” to prevent discrepancies between countries, pointing out that “in Spain, insurances are more accessible, while in Portugal, they are more challenging.”
“A European guarantee, along with a national guarantee, we’ve already discussed this with the Development Bank, where the risk is much lower, resulting in cheaper insurance,” he added.
Damages inflicted by the blackout are estimated to be at least three million euros in the dairy sector, according to the Confederation of Agricultural Cooperatives and Agricultural Credit of Portugal (Confagri), which is calling for government assistance.
The Portuguese Association of Meat Industries (APIC) has also called for the establishment of a support line and the prohibition of energy companies from claiming force majeure due to the costs associated with the blackout, which led to animals not being sent for consumption.
The blackout on Monday occurred at 11:33 Lisbon time, affecting the entire continental territories of Portugal and Spain as well as some areas in southern France.
