PLH action closed - added 90,000 t pork from the market
The private storage action (PLH) the Commission opened on Jan. 4, 2014, was closed with effect from Jan. 21, 2016. Within a few weeks, pieces were taken from the pig in an magnitude of 90,000 tonnes from the market. This corresponds to approximately 4.5% of a monthly production. The subsidised storage costs about €27 million.
The storage period could be selected between 90, 120 and 150 days. The 3 month version was elected to a two-thirds share. The storage time of 150 days accounts for about 25%.
In total, 16 Member States have participated. Germany has brought the largest amount with 29%. Spain has contributed about 21%. Denmark comes to 13% and the Netherlands on 12%. Poland and Italy have participated with each approximately 6.5%. France has only minimally engaged due to his concurrent national promotion.
With 53% is native to the vast amount of pieces of meat from the leg bone. The remaining on sides, bellies, and Bacon sections. Higher quality pieces are only minimally represented.
The objective of the PLH action is preventing further price drops. Actually the of weeks prices have been rising at the level of €1.25 / kg €1.31 / kg. More price increases are not visible for the time being.
The short-term completion of PLH action is justified with the large amount of starting early to outsource of most of the quantities of meat already in March and the limited available budget resources .
Critics see little sense in the PLH action. The short-term success of price will more than offset during, and at the latest at the end of outsourcing by corresponding price pressure. Potential buyers of parts can hold their current purchasing, reduce their own stocks in the certainty that the future demand is secured. This would lead to lower than usual prices.
