Private Storage Aid having limited impact
The current Private Storage Aid (PSA) scheme for pig meat came into force about a month ago. By 6 April, requests for PSA for a total of 47,400 tonnes had been entered.
To put this into context, it is equivalent to about 40% of EU exports or 3% of production during March last year. Over 60% related to boned legs, with a further 20% covering boned bellies or middles, with most being stored for the minimum 90 days. The main countries involved are Spain, Denmark, Germany and Poland, accounting for over 70% of applications between them. As all are major exporters, this suggests that the PSA scheme is mainly being used for product intended for export, which will be released at a time of year when demand is usually better on key export markets.
So far, the PSA scheme appears to have had little impact on the EU pig market. Prices in the week before the scheme opened were just under €143 per 100kg but they have since fallen back slightly to stand at around €141 in the final week of March. This supports the view that much of the product involved was probably not destined for the EU market, so the scheme has had little impact on supply levels.