Brussels, 26/02/2015 (Agence Europe) - In a press release published on Wednesday 25 February, the agricultural organisation Copa-Cogeca welcomed the Commission initiative in triggering aid for the private storage of pig meat so that some supplies may be taken off the market until the situation improves (see EUROPE 11261).
“Prices have reached critical levels, being less than the EU's reference threshold price for over 18 consecutive weeks”, say Copa-Cogeca in their press release. The organisations deeply regret that the products most affected by the Russian ban are not included. They call for the introduction of complementary measures, such as alternative uses for the fat that is currently in storage, finding new alternative markets, the removal of sanitary and phytosanitary barriers and promotion measures.
The European Union decided on Tuesday 24 February to put in place aid from the start of March for the private storage of pig meat. The aim is to raise prices that have been tumbling as a result of the combined effect of the Russian embargo imposed in January 2014 and increased production.
Adoption of this mechanism (last used in 2011) was approved by 21 member states, including France, Denmark, Poland and Belgium. Germany, Spain and Sweden voted against it, while the Netherlands, the United Kingdom, the Czech Republic and Slovakia abstained.
The mechanism will subsidise the storage, for periods of time between 90 and 150 days, of pork products withdrawn from the market. The Commission says that prices are currently 20% lower than the average of the last five years, after six months when they had already fallen by 15%, creating “serious liquidity problems” for producers. Producers will now receive, for example, between €254 and €278 per tonne of ham stored, depending on the length of storage time.
Russia imposed a ban on the import of European pork in January 2014. The official reason given was the cases of African swine fever discovered in Lithuania and Poland. The EU has lodged a complaint against the embargo with the World Trade Organisation (WTO). (Lionel Changeur)