EU Commission launches Private Storage Aid for pig meat
On Tuesday, the EU Commission moved to introduce Private Storage Aid (PSA) for pig meat.
The scheme is expected to open next week and will provide support for storage costs of certain cuts for between 90 and 150 days. PSA has been introduced to ease the pressure on the EU pig meat market, with pig prices having now been more than 15% below the 5-year average for over 6 months. This is largely attributed to the Russian import ban at a time when EU production has been increasing, albeit only slowly. Gross producer margins are also well below average, with many producers losing money for a number of months.
Full details of the scheme have not yet been published, although the rates of aid range from €210 to €305 depending on the cut and storage period. Therefore, it is hard to assess what the impact on the market will be at this stage. However, any reduction in the amount of pig meat on the market is likely to give support to prices across the EU.