The measures were approved on 18 October, and woudl introduce a private storage aid scheme for pigmeat. The programme could help prop up prices to processors, or restrict their supply, depending on how producers react to the aid programme. Under the programme, operators who store meat at their own expense and their own risk for a period of between three and five months will be eligible to receive aid to cover the costs. They can then choose to release the meat back into the market at a later stage when the market situation has improved, the Commission stated. Under the programme products can be removed from storage after two months if the meat is exported. The Commission can also decide to prolong the storage period if the market situation so requires, according to a statement. The pigmeat market is entering its usual seasonal drop in prices during the autumn. However a 2 per cent increase in production has led to additional meat on the market. However, the situation has been exacerbated by a 35 per cent increase in feed costs in the year to September 2007, which has forced down margins for producers. The private storage aid scheme will enter into force on 29 October. The Commission said it would continue to monitor closely the market situation and take appropriate further action if necessary. In related news the British Pig Executive reported that in September cheaper imports were also coming into the market. The monthly report also noted that pig meat prices across the EU had fallen by four per cent in September compared to the previous four weeks.
