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Europe Daily Bulletin No. 9551
Contents Publication in full By article 15 / 37
GENERAL NEWS / (eu) eu/agriculture

Commission proposes reintroducing export aid for pork meat - Decision expected on 29 November

Brussels, 26/11/2007 (Agence Europe) - Having spent a long time weighing up the pros and cons, Mariann Fischer Boel, European Commissioner for Agriculture, announced on Monday 26 November that she was to propose the reintroduction of restitutions for the export of pork meat to third countries. This proposal will be presented to the Agriculture/Fisheries Council on Tuesday 27 November and is set to be agreed on Thursday 29 November by the competent management committee.

The Commission explained its decision by referring to the worsening market situation and continuous depreciation of the dollar-euro exchange rate. The European pork sector is facing a crisis of overproduction, which is sending prices tumbling (it has dropped by around 11% in a year). Furthermore, farmers are facing increasing prices of fodder for their animals, due to the increase in price for agricultural raw materials.

In parallel to its desire to open up aid to export, “wherever the destination”, the Commission has stated its intention of suspending the system of Community aid for the private storage of pork meat, which was set in place on 29 October (EUROPE 9527). According to the Commission, this aid regime has been in great demand from operators, but it has proved insufficient to respond to the difficulties faced by producers. Since the private storage was opened, aid has been requested for 85,000 tonnes (t) of pork meat, including 16,000 t in Spain, 14,000 in Italy, 12,500 in Denmark, and 12,000 t in Germany. The Commission acknowledges that the “sharp drop in the American dollar has greatly reduced the competitiveness of European exporters, whose main competitors are in the United States, Canada and Brazil”. (L.C.)

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