December 28, 2009

 

Recalled Irish pork still in Russian, Portuguese storage a year after scare

 
 

Recalled meat in Ireland remains in storage in Russia and Portugal a year on from the pork dioxin scare.

 

The Irish government's bill for the costs associated with the pork crisis has already hit 118 million euros (US$169.79 million) as claims continue to be lodged.

 

Millions of euros worth of pork products were pulled from shelves and butchers in Ireland and were recalled from more than 20 countries worldwide in December last year, after routine tests showed an unacceptably high level of dioxins in meat on a small number of farms.

 

Exports to Russia and China, which were estimated to account for under 4pc of the 307 million euros (US$441.77 million) annual pork exports, remain closed.

 

The impact of the dioxin scare was still being felt 12 months later, as the Department of Agriculture said estimates are not yet possible how much more would be spent on the massive recall from the overseas market.

 

Agriculture Minister Brendan Smith, who agreed a 180 million euros (US$259.15 million) compensation package for pork processors, said the fund was not expected to be drawn entirely.

 

But the Irish Association of Pigmeat Processors (IAPP) confirmed there was still a "considerable amount" of money to be paid over to the sector.

 

So far around 28.3 million euros (US$40.72 million) has been paid to producers and other parties from the culling of close to 100,000 pigs and some cattle. The primary processors were paid 41 million euros (US$58.99 million), a further 44 million euros (US$63.31 million) went to secondary processors, and 5 million euros (US$7.19 million) was spent on rendering the product.

 

The IAPP's director Cormac Healy said around 70pc of the funds owed to primary processors had been paid.

 

But he said a delay in the payout, with part of the funds involving state aid from the EU, had brought further challenges during a very difficult year.

 

The department confirmed that around 210 tonnes of meat remained in Russia, and a further 30 tonnes were in Portugal, while "valid claims" had yet to be lodged by the processors concerned.

 

But this is a fraction of the 30,000 tonnes of recalled product already dealt with.

 

Most of the pork products were brought back to Ireland for destruction. However, some of it was destroyed abroad where arrangements could be made, the IAPP said. It is expected the remaining product may be destroyed abroad.

 

Bord Bia launched a PR blitz to protect the multi-million euro industry estimated to employ up to 6,000 people in the aftermath of the food scare. It confirmed a full restoration of trade in its main markets. Work is under way with the embassies in Moscow and Shanghai.

 

Despite the recession, consumer demand for pork, bacon and sausages at home has been strong, with figures from TNS retail showing the sales volume increased in the first half of the year.

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