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Private storage aid introduced for pigmeat in response to difficult market situation

by 5m Editor
22 October 2007, at 10:10am

EU - The Management Committee for Pigmeat on the 18 October 2007 backed a Commission proposal to introduce a private storage aid scheme for pigmeat in response to the current difficult situation on the market.

Under the programme, operators who store meat at their own expense and their own risk for a period of between 3 and 5 months will 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.

If products are exported, they can be removed from storage already after 2 months. The Commission can also decide to prolong the storage period if the market situation so requires. The pigmeat market is entering its usual seasonal drop in prices during the autumn also as result in the increase in production in the order of 2%. However, the situation has been exacerbated by increasing feed costs.

Feed costs increased by around 35 percent between September 2006 and September 2007, which has forced down margins for producers.. The private storage aid scheme will enter into force on 29 October. The Commission will continue to monitor closely the market situation and take appropriate further action if necessary.

5m Editor