EU to help with pig storage payments
The EU is to release a payment to help pay for extra storage as the pig industry reels from the twin blows of soaring feed costs and the German dioxin contamination.
It has opened its Aids to Private Storage (APS), a move that has been welcomed by Bpex, in a bid to aid the sector, which has seen a fall in demand and an over-supply issue in recent months.
APS will open from Tuesday, 2 February and will cover a storage period of 90, 120 or 150 days. When it comes out of storage, it must be exported outside the EU. Each application will cover a quantity of at least 10 tonnes for boned products and 15 tonnes for other products.
There are no specified limits on quantities, but Member States are required to inform the Commission twice a week on the quantities for which applications to conclude contracts have been submitted.
Bpex director Mick Sloyan welcomed the move, but warned the industry was still facing a tough time.
He said: “The industry is in dire straits across the whole of Europe and this may help towards stabilising the price.
“However, much depends on how much processors decide to put into storage. Pig farmers are losing up to £21 on every pig they sell and the threat of extra pig meat coming on to the market because of the downturn in demand in Germany is very worrying.
“There is still a great deal of work to do in getting the prices paid to producers up to a level that sees them at least break even.”