EU Introduce Export Refunds To Halt Pigmeat Price Slide
EU - In a bid to halt falling pig prices, the European Union (EU) is set to intervene by introducing export refunds for the first time in three and a half years, which should help to reduce surplus pigmeat.
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But the export refunds are likely to be attacked by Third World countries and could frustrate the ongoing World Trade Organisation (WTO) talks.
EU prices of 70-80p/kg caused the UK Adjusted Euro-Spec Average (AESA) to shed 0.52p/kg in the w/e 10 January.
It now stands at 99.3p/kg, with the GB Deadweight Average Pig Price (DAPP) almost 2p ahead of this, at 101.13p/kg.
Although lighter cutter weight pigs are holding up reasonably well at 108-112p/kg, demand for baconers has proved more selective and the majority of spot quotes are at 98-101p/kg.
Despite the Euro slipping to 69.1p against the Pound on Friday (16 January), the cull sow market seems to have stabilised in the 56-58p/kg range.
Weaner prices remain static despite reduced supply due to infertility problems last summer/autumn, with the Meat and Livestock Commission 30kg average at 332.38 ex-farm.
Source: eFeedLink - 21st January 2004