Two-thirds of the 90,000 tonnes of pigmeat products which entered the EU’s private storage aid (PSA) scheme in January will be released back onto the market during the three weeks starting on April 17, according to AHDB Pork.
Despite EU pig prices having started to show signs of upward movement, especially as demand picks up ahead of Easter, AHDB Pork commented that there must be “some concern” that the extra supplies released from storage will curtail the upward price trend.
“The volume to be released during April and early May is equivalent to around 3% of monthly EU production. This would be enough to move prices if demand (either from domestic or export markets) is insufficient to absorb the quantity involved.”
Although most of the stored product is likely to be intended for export, it may still displace other product, which will then have to be sold on the EU market.
“If the release of supplies from the PSA scheme does suppress prices, it would increase the pressure on the European Commission to open a new PSA scheme,” said AHDB Pork. “This is already under consideration as part of the package of support measures announced last week by farm commissioner, Phil Hogan.”