The Netherlands leads the way in pork storage – News Private Storage
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The European Commission has at the end of March, as a crisis measure regarding the war between Ukraine and Russia. So far, 33,000 tons of pork has been brought in. Although the scheme is not going through a storm, it is striking that the Dutch market is leading the way.
Of the 33,000 tons of pork imported, 29% comes from the Netherlands. Denmark follows in second with 23%, followed by Spain (19%), Germany (14%) and Poland (4%). Market parties who benefit from the storage scheme receive compensation for this. The longer the storage period, the higher this fee. For example, hams, shoulders and front pieces receive the maximum of €423 per tonne, with a storage period of 150 days, reports the Netherlands Enterprise Agency (RVO.nl). Approximately €11 million in subsidy has been raised for the volume that is now in storage.
Sensitive topic
The storage arrangement is a sensitive subject. The counter arguments are that this coherence can shift the market recovery, because then volumes ‘hang above the market’. The Producers Organization Pig Farming (POV) was also against the scheme, as was the German representative ISN.
The volume that is now stored is limited, however, so that this (later this year) will not be an obstacle to a recovery of pig prices. The scheme will run until the end of this week. It is not yet known whether the scheme will be extended.
Wouter Baan
Wouter Baan is an editor for Boerenbusiness and focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.
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