Brussels, 27/01/2011 (Agence Europe) - Measures to aid the private storage of pig meat were finalised by the EU Management Committee on Thursday 27 January and the first aid may be paid out as early as next week. The aid is to mitigate the effects on producers of the sharp fall in market prices. Producers find themselves in difficult straits as a result of this price drop and also because of the increase in the cost of feed for the pigs.
The Management Committee decision was taken by qualified majority. Denmark and Sweden voted against the measure and three countries (UK, Slovakia and Estonia) abstained.
When the Community price, weighted to reflect the size of each member state's pig numbers, falls below 103% of the base price, the Commission may decide to grant aid for the private storage of pig meat. Market prices have fallen below this level and the situation could last some time, the regulation, which will be published in the Official Journal on Friday or Saturday, acknowledges.
Under the programme, operators who store frozen pig meat at their own expense and their own risk for a period of between three and five months will be eligible to receive Community aid to cover storage costs. The rate of aid depends on the type of cuts of meat and the length of time of storage. For example, for half carcases, aid will be €376 per tonne (when stored for 90 days), €398/t (120 days) or €420/t (150 days). For legs and shoulders, the aid will be €416/t, €435/t or €455/t. for the respective storage periods Per day and per tonne, aid for storing half carcases is €0.74 and for legs and shoulders €0.65.
At the end of the storage period, the meat is released back onto the European market. It may also be released for export after two months.
There is no limit to the quantity of meat that can be stored. In 2007-2008, 100,000 tonnes of pig meat was stored, at a cost of €37 million to the Community. (L.C./transl.rt)