Coveney welcomes EU move to ease pigmeat pressure
Pig prices have fallen on all European markets due to the effect of Russia import barriers and increased production in the EU.
As a result, the European Commission has moved to introduce private storage aid for pigmeat — a market measure that compensates part of the storage cost for a certain period. Agriculture Commissioner Phil Hogan said private storage aid is the most effective tool available to address the difficult market situation.
This measure will remove a considerable volume of product from the market, which should have the effect of putting a floor under the market.
It should also stabilise the financial situation of farmers and should enable the market to recover by stimulating the fragile recovery in prices, he said.
Mr Coveney said that the decision was taken by the Commission after consultation with member states at a meeting in Brussels at which Ireland voted in favour of the measures.
He said he was pleased the Commission was coming forward with this measure in response to price difficulties for pig producers across the EU. The industry supports 7,000 jobs in Ireland including production, slaughter, processing, feed manufacture and services.
Irish pigmeat exports were worth €570m in 2014 up 3% on the previous year. Mr Coveney said this measure provides tangible recognition from the Commission of the difficulties facing the pigmeat sector.
Many Irish producers, despite operating with relative scale and efficiency, are continuing to experience negative margins since the loss of the Russian market, which was Ireland’s third largest for pigmeat, as well as wider downward pressure on prices, he said.
Mr Coveney pledged to continue engaging with the Russian authorities but ultimately the ban on pigmeat is an EU-wide issue which will likely only be resolved in that way,” he said.
“Thankfully, we have been able to open alternative markets for Irish pigmeat since the closure of the Russian market,notably in Vietnam and the Philippines,” he said.
