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EU Aid for Pig Industry

28 January 2011

British Pig Executive

EU - The EU has yesterday agreed to open Aids to Private Storage (APS) to help the pig industry struggling under the twin blows of soaring feed costs and problems with dioxin contamination of feed in Germany.

The move may help bring limited relief to hard-pressed pig farmers says BPEX Director Mick Sloyan.

Feed costs have seen a huge rise in the cost of production for producers across the EU and the dioxin problem has caused disruption to the supply chain and falls in demand in some parts of the EU.

APS will open from Tuesday, 2 February and will cover a storage period of 90, 120 or 150 days. When it comes out of storage, it must be exported outside the EU.

Each application will cover a quantity of at least 10 tonnes for boned products and 15 tonnes for other products.

There are no specified limit on quantities but Member States are required to inform the Commission twice a week on the quantities for which applications to conclude contracts have been submitted.

Mr Sloyan said: "The industry is in dire straits across the whole of Europe and this is welcome as it may help towards stabilising the price

"However, much depends on how much processors decide to put into storage.

"Pig farmers are losing up to £21 on every pig they sell and the threat of extra pig meat coming onto the market because of the down turn in demand in Germany was very worrying.

"There is still a great deal of work to do in getting the prices paid to producers up to a level which sees them at least break-even."

ThePigSite News Desk Read more BPEX News here


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