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Release of Pork From Private Storage to Start Soon

29 March 2016, at 12:00am

EU - The 90,000 tonnes of pig meat products which were accepted into the EU Commission’s Private Storage Aid (PSA) scheme in January will soon start to be released.

Around two-thirds of the total volume was stored for the minimum three months. Most of this will be released back onto the market in the three weeks commencing 17 April. The remaining product, which was stored for four or five months, will be released later in May or during June.

EU pig prices have started to show signs of upward movement as demand picks up in the run up to Easter. However, there must be some concern that the extra supplies released from storage will curtail this trend.

The volume to be released during April and early May is equivalent to around 3% of monthly EU production.

This would be enough to move prices if demand (either from domestic or export markets) is insufficient to absorb the quantity involved. Most of the stored product is likely to be intended for export but, even so, it may displace other product, which will then have to be sold on the EU market.

If the release of supplies from the PSA scheme does suppress prices, it would increase the pressure on the EU Commission to open a new PSA scheme. This is already under consideration as part of a package of support messages announced last week by Commissioner Hogan.

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