By Lewis Crofts - 23rd January 2004
Brussels reintroduced export subsidies for pork on Friday to alleviate an industry in disarray.
Pigmeat prices have slid 16 per cent in the last three months on the European market and Brussels is scrambling for additional measures to stop the rot.
In December, the EU reacted to distress signals from the industry by making €30 million available to store pig carcasses for resale while the market recovers.
But this has not been enough and so national governments met on Friday to find a solution.
“Exceptional circumstances call for exceptional measures” said farm commissioner Franz Fischler.
“The temporary reintroduction of export refunds for pig meat is the last resort, after having exhausted all other means.”
The refund will be set at € 40 per 100 kilogrammes for exports to all non-EU countries, with the exception of Romania, Bulgaria and the ten states due to join in May this year.
Half-carcasses and cuts only will be eligible as “there are still refunds for processed meat, such as sausages”.
This follows words to the same effect from last week where Fischler said he was actively considering such measures.
“Although the private-storage scheme has stabilised prices at a very low level, there is still no sign of them picking up again."
“I will consider proposing that export refunds should be reintroduced for a limited period.”
The EU’s pigmeat industry has weathered a tough time since demand from Russia dried up, firstly in the wake of the foot-and-mouth crisis of 2001 and then after the imposition of quotas in 2003.
Have your say...
Please enter your comments below.