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Commission Launches Private Storage Aid for Pig Meat

24 February 2015

EU - A European Commission move to introduce Private Storage Aid for pig meat in order to ease pressure on the EU pig meat market will be formally opened in the next week.

Under the combined effect of Russian import barriers and the increase in EU production, prices have considerably decreased on all European markets.

Even if there is a hint of slow recovery, the EU pig price is still 20 per cent below the 5-year-average – and have been more than 15 per cent below the 5-year average for six months.

Gross margins are also more than 15 per cent below the historical average and with many producers having been in a situation of negative revenue for a number of months, farmers are facing serious problems of liquidity.

Agriculture Commissioner Phil Hogan: "I believe that Private Storage Aid is the most effective tool available to us to address the difficult market situation.

“This measure will remove a considerable volume of product from the market, which should have the effect of putting a floor under the market, stabilising the financial situation of farmers and should enable the market to recover by stimulating the fragile recovery in prices."

Under the scheme, the Commission finances a fixed amount to contribute to the basic costs of storage for certain pig meat cuts (for 90-150 days) – for example for hams the rate varies between 254 €/tonne for 90 days and 278 €/t for 150 days.

Aid for private storage is a market measure within the frame of the CMO Regulation 1308/2013 that compensate part of the storage cost for a certain period. The Commission is preparing an Implementing Regulation laying down all technical details.

ThePigSite News Desk

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