Meat Industry INSIGHTS Newsletter

990239 EU Lifts Export Subsidies For Pork to Russia

February 12, 1999

Brussels - The European Commission said it would increase subsidies for a number of European Union pigmeat products destined for Russia in a bid to help Europe's crisis-hit pork market, Commission officials said.

“(EU Farm Commissioner) Franz Fischler decided to raise export refunds for certain processed pork products this morning after some member states asked for help earlier this week,” Commission spokesman Gerry Kiely told Reuters.

The Commission on Wednesday rejected calls from France and others to bring in additional measures, but has now decided to boost refunds for processed pigmeat products, though it was unlikely to offer any more help in the near future, he added.

From Monday the refund for cooked sausage would be raised to 40 euros per 100 kg from 25 euros, while the rate for salami would be increased to 50 euros per 100 kg from 28 euros, the Commission said in a statement.

The subsidy for luncheon meat exports would go up to 45 euros per 100 kg from 25 euros, while the refund for cooked shoulder would be lifted to 50 euros from 34 euros.

EU exports of these products to Russia in a normal six-month period usually total around 65,000 tonnes but in the six months since the Russian crisis began exports have almost halved, the Commission said.

The British Pig Association told a Brussels news conference on Thursday Europe could suffer over 50,000 job losses in the next three or four months if the results of a recent British survey were replicated across Europe.

The EU's pork sector has been plagued by overcapacity and was particularly hard hit by the collapse of the Russian market last year which accounted for two thirds of its pork exports.

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