19.
02.15
15:06

Proposal for a PLH action is being prepared

Commissioner Hogan pork prepare proposal for PLH action

Actually there is agreement in expert circles: a State-funded private storage aid action for pork is counterproductive. The previous experiences with this instrument are unpersuasive.

European aid figures for the private storage of pigmeat are intended for particularly critical situations of price on the pork market. This cuts be kept away from the pig for a period of 3 to a maximum of 6 months from the market, to support market prices in this way. To date, 6 of such PLH actions have taken place since the 1990s. 

The offer is voluntary. Interested market participants give the pieces for a fixed time in a sealed private stock and receive a cost compensation for the effort. Storage periods of 3 to 6 months require such cuts of pork, which are suitable for storage and camp worthy. Thus, all fresh meat cuts are already excluded.

Fresh meat of pork is determining value but to a large extent. The classic example is the salmon with a weight from 7 to 8 kg, which costs in the fresh meat business between 8 and €10 per kg. Alone this part of achieving a proportion of value, which makes up about 50 to 70% of the total pig. Also loins with prices between 4 and €6 / kg include the value-bearing elements of the pig. The high prices can be achieved but only in fresh business.

For the camp business equity is only the less valuable pieces such as Bacon and other fatty parts of the section. It is obvious that the price-supporting effect of a temporary storage with low price pieces from this point of view is little promising.

Stocks and storage times will be publicly announced. Market participants know so well about this, when what quantities again flow back into the market. The result is a strong reluctance of the own stock economy. Thus to reduce a price-supporting effect.

The short period of intermediate storage causes that the stored pieces are just at the time the price recovery in the market back removed . Just higher prices is once again called into question. The length of time of low prices is extended in the past there was aid actions to a price level of € 1.30 per kg. This price situation seems to have been overcome after the current state of knowledge. Thus arises the question whether an PLH action yet contemporary and actually comes to mind. one month too late. Also the prospects of declining numbers of battle, one in preparation for forthcoming barbecue season and export opportunities due to the euro rate speak against it, to initiate now a PLH action.

May is just a political move, to have shown good will, after one has resisted months.

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