October 23, 2007

EU to provide storage subsidies to pork farmers

The EU has introduced private storage aid introduced for pork producers in response to difficult market situation.

The Management Committee for Pigmeat on the 18 October 2007 backed a Commission proposal to introduce a private storage aid scheme for pigmeat. Under the programme, operators who store meat at their own expense and their own risk for a period of between 3 and 5 months would be eligible to receive a Community aid to cover storage costs.

They can then choose to release the meat back into the market at a later stage when the market situation has improved. The private storage aid scheme would be effective 29 October.

Storage would be 2 months for products to be exported. 

The Commission said it would prolong the storage period if the market situation requires.

Farmers are currently faced with the double whammy of a seasonal drop in pork prices this fall and higher feed costs. Production is also up 2 percent.

Feed costs have risen increased 35 percent on-year, which has forced producers into hard times.