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French poultry company asks for an alternative to compete with Brazil

French poultry company Tilly-Sabco has appealed to the European Union to replace a controversial export subsidy with a development fund to help French farmers compete with cheaper Brazilian products.

The export subsidies are controversial in international trade relations, and the EU has strongly reduced support for poultry exporters in recent months, causing concern in the industry at a time when the French group Doux is trying to recover.

Tilly-Sabco says it accepts that export subsidies have to go, and it is now seeking funding to modernize itself and draw level with Brazilian production costs by 2020.

The French company estimates that Brazilian exporters' production costs are € 350 euros per ton, 10-15% less than its own costs.

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