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The European Commission has authorised French restructuring aid of EUR3.6m (US$4.6m) to Tilly-Sabco, the poultry export arm of French co-operative group Unicopa.

The business went into administration in 2006 as a result of flagging demand in the wake of a bird flu scare.

“The Commission considered that the restructuring measures were an appropriate means of restoring the firm’s viability, that the aid was limited to the minimum necessary and that it did not entail excessive distortion of competition,” the Commission said.

The restructuring consists of rationalising Tilly-Sabaco’s activity on its core markets in the Middle East and French overseas territories. This focuses on whole chickens and sausages, consolidating sausage trading and withdrawing from chicken cuts, processed products and turkey, it added.