German farmers will be compensated at close to market prices

German farmers are to receive compensation at close to market prices, with the bill split between Brussels and Berlin.

The ministry estimates the total cost of the buy-up, testing and slaughter programme will be over $300m, with $135m of that coming from Brussels.

Despite the misgivings of some farmers, the head of Germany's largest farmers' group, Gerd Sonnleiter, said he was relieved at the cabinet's latest decision.

"The distress of farmers and their animals can stand no delay," he said.

Pressure on Germany

The BBC's Berlin correspondent, Rob Broomby, says it is understood that Germany came under intense pressure from other European nations to join the buy-up scheme, as prices and consumption in the nation have fallen further than the European average.

Beef consumption has fallen by 30% in Germany, as compared with about 25% in Europe as a whole.

The German Government has gone further than most other European countries, by introducing compulsory testing for cows of 24 months or older.

It has also called for the culling of all cows in a herd in which BSE is identified.

Ms Kuenast pledged a tough line on consumer protection after her predecessor and the country's health minister stepped down over the botched handling of the crisis.

High costs for EU

Announcing the extra funding in Brussels, EU Budget Commissioner Michaele Schreyer - like Ms Kuenast, a member of Germany's Green Party - said the money would include 700 million euros ($651m) to buy and destroy animals.

She said there would also be an extra 238 million euros to intervene on markets to support prices and 33 million for BSE testing.

EU farm policy officials said on Monday that the cost to the EU budget of the crisis could reach seven billion euros over the next five years, in a worst case scenario.