The EU’s Private Storage Aid (PSA) scheme for pigmeat has started well, attracting high initial volumes and raising hopes that it may give some support to prices, according to AHDB Pork.
“On the first day of the scheme, January 4, applications were lodged for 32,600 tonnes of pork and 2,700 tonnes of fats,” said AHDB Pork, noting that this is already more than half of the total that was stored during the previous two-month scheme, introduced last year.
“This fast start suggests that the new scheme may be more widely used, giving it a better chance of supporting EU pig prices. Certainly, reports suggest that EU prices have firmed slightly since the New Year, at a time of year when they normally fall. While it is too early to say how much this may be attributed by the PSA scheme, it could certainly be a factor.”
Over half the first-day applications were for boned legs, with the remainder made up of a mix of other cuts. Fats made up just 8% of the initial applications.
Over two-thirds of requests were for the minimum three-month storage period, with most of the rest being for the full five months.
More than 80% of applications came from just four member states, namely Spain, Germany, Denmark and the Netherlands. Less than 300 tonnes were entered from the UK.