(1)

Because of an outbreak of avian influenza in certain production regions in Italy between December 1999 and April 2000, between August and October 2000 and between October 2002 and September 2003, veterinary and trade restrictions were adopted by the Italian authorities under, in particular, Council Directive 92/40/EEC of 19 May 1992 introducing Community measures for the control of avian influenza (2). As a result, the transport and marketing of hatching eggs were temporarily banned within Italy or within the areas directly affected by the outbreak.

(2)

The restrictions on the free movement of hatching eggs resulting from the application of the veterinary measures threatened severe disruption of the market in hatching eggs in Italy. The Italian authorities adopted market support measures for the period for which this was absolutely necessary. These allowed hatching eggs falling within CN code 0407 00 19 for which incubation was no longer possible to be processed into egg products and the destruction of hatching eggs falling within CN codes 0407 00 19 and 0407 00 11.

(3)

These measures had a beneficial effect on the market in hatching eggs. This justifies their being treated as an exceptional market support measure within the meaning of Article 14 of Regulation (EEC) No 2771/75 and the grant of aid to compensate for part of the financial loss resulting from the processing or destruction of hatching eggs.

(4)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Poultrymeat and Eggs,