Brussels, 30/11/2007 (Agence Europe) - The EU management committee decided on Thursday 29 November to support the European Commission's proposal to grant export refunds in the pig meat sector. The refunds will be in the amount of €31.1/100 kg for pig meat carcasses and cuts and €19.4/100 kg for pig offal. This aid will be payable from Friday 30 November for all exports, whatever their destination. As announced, the Commission is putting an end to the private storage aid scheme in place since 29 October.
For many months, the strength of the euro against the dollar and the price rise for animal feed have plunged European pig farming into crisis (a steep drop in prices). The EU no longer has the means to keep up with other major producers, in particular Canada, the USA and Brazil. The European Commission has accepted using export refunds in the pig meat sector, which is the only measure likely to relieve the Community market. The export aid scheme had not been activated since February 2004. At the end of October, the Commission contented itself with activating the storage aid scheme.
End to private storage. At the same time as export refunds are opened, the Commission is to suspend the private storage aid scheme. In one month, requests for storage aid have been submitted in the EU for 97 000 tonnes, 19 000 of them in Denmark, 18 000 in Spain, 15 000 in Italy and 12 500 in Germany. According to the Commission, the private storage instrument had proven insufficient to remedy European pork-producers' difficulties. This measure seems to have enabled prices to stabilise, but the margins on the cost of animal feed have dropped by about 65 to 70% in 2007 compared to the average for the period 2002-2006. The major dip in the dollar has drastically reduced the competitiveness of European exporters, whose major competitors are the USA, Canada and Brazil. Pig meat exports from the EU27 are estimated at 1.8 million tonnes in 2007, which is a drop of 13% compared to 2006. (L.C.)