February 1, 2011

EU aids suffering German pig farmers

EU offers help to pig farmers who are hit by soaring feed costs and issues of feed dioxin contamination in Germany.

The Aids to Private Storage (APS) funds will be used to help farmers who store their produce for a period of 90, 120 and 150 days. The meat must then be exported outside of the EU.

British Pig Executive director Mick Sloyan said, "The industry is in dire straits across the whole of Europe and this is welcome.

"However, much depends on how much processors decide to put into storage. Pig farmers are losing up to GBP21 (US$33.70) on every pig they sell and the threat of extra pig meat coming onto the market because of the downturn 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."

An NPA spokesman said, "We trust that Asda's initiative will encourage others to follow suit quickly so that very soon the price paid to producers will increase significantly to reflect the true production cost of high welfare, British pigs for Red Tractor pork, bacon, ham and sausages.

"The NPA is also pleased with Asda's commitment to review its sourcing policy with a view to including more high welfare, assured British pork and pork products on their key lines, hopefully to the levels of their competitors," the spokesman added.

Asda said it had acted to help alleviate some of the issues currently dogging the pig sector.

Andy Clarke, Asda chief executive, said, "We understand it's a difficult time for pig farmers and we hope the feed price supplement being offered to our Pork Link members will help ease some of the pressure."