January 22, 2016

 

EU Private Storage Aid scheme helps prevent fall of pigmeat prices
 

 

The EU Private Storage Aid (PSA) scheme for pigmeat has helped prevent the fall of pork prices at the start of the year, the AHDB Pork said.

 

On the first day of the latest PSA scheme, which opened on Jan. 4, applications for 32,600 tonnes of pork and 2,700 tonnes of fats were received.

 

The total of 35,300 tonnes is already more than half of the total amount stored during the previous scheme, which lasted for two months in the spring of 2015.

 

The scheme, which provides EU funding to help cover the costs of storing certain pigmeat products for three to five months, was devised to ease pressure on the EU market, which is still struggling from the Russian ban on imports from February 2014.

 

"This fast start suggests that the new scheme may be more widely used, giving it a better chance of supporting EU pig prices", said the AHDB Pork, a division of the UK's Agriculture and Horticulture Development Board.

 

The AHDB Pork cited reports suggesting that EU pig prices have firmed slightly since the New Year, at a time when they normally fall. "While it is too early to say how much this may be attributed to the PSA scheme, it could certainly be a factor", it said.

 

It said over half of the applications on Jan. 4 were for boned legs, with the remainder comprised a mix of other cuts. Fats made up just 8% of the initial applications.

 

Over two-thirds of requests were for the minimum three-month storage period, while most of the rest were for the full five months.

 

Over 80% of applications came from four member states that are all major exporters-Spain, Germany, Denmark and the Netherlands. Less than 300 tonnes was entered from the UK.

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