IMPLEMENTATION LEVEL

Supranational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 04 Jan 2016 | Removal date: 03 Feb 2016
Still in force

Production subsidy

 On 15 December 2015, the European Commission announced a new pig meat storage aid. A similar programme was introduced on 9 March 2015 but was ceased two months later after having "a favourable effect" (cf. Related Measures).
According to the EC, "The situation of the Union pig sector has deteriorated throughout 2014 and 2015. Due to the specifics of the pig market, with a system of inherent delayed adaptation of the breeding sector to reduced demand for slaugthter pigs, the Union pig production has increased while well performing exports declined strongly as a result of the loss of Russia as an export market. As a result, the market currently faces continuing price pressure which goes beyond the one of normal cyclical periods. Average recorded Union market prices have been below the reference threshold as laid down in point (f) of Article 7(1) of Regulation (EU) No 1308/2013 since mid-August 2015 and have significant negative impact on the margins in the pig sector. The persisting difficult market situation compromises the financial stability of many farms. The temporary removal of pigmeat from the market seems necessary in order to re-establish market balance and to increase prices. Therefore, it is appropriate to grant aid for private storage for pigmeat and to fix the amount of aid in advance".
The averaged daily aid amounts vary depending on the exact product and the length of storage - from 0.24 to 0.54 EUR/day/tonne.
The programme came into force on 4 January 2016 but was suspended on 27 January 2016. When explaing the decision, the EC pointed out that "An examination of the situation on the market and the use of the private storage aid scheme for pigmeat provided for in Commission Implementing Regulation (EU) 2015/2334 make it advisable to consider closing it". One week later, on 3 February 2016, the programme was closed.
The list of affected trading partners is based on the data for the year 2014.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

211 Meat & meat products
0203 Meat of swine, fresh, chilled or frozen.
020311 Carcasses and halfcarcasses
020312 Hams, shoulders and cuts thereof, with bone in
020319 Other
020321 Carcasses and halfcarcasses
020322 Hams, shoulders and cuts thereof, with bone in
020329 Other
215 Animal fats
0209 Pig fat, free of lean meat, and poultry fat, not rendered or otherwise extracted, fresh, chilled, frozen, salted, in brine, dried or smoked.
020910 Of pigs

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