Brussels has no intention of providing aid to European pig farmers to alleviate the deep crisis they are in. This came to the fore on Tuesday 25 January during a meeting of the European Union's Agriculture Committee. According to Deputy Director-General of the European Commission Michael Scannell, no intervention measures can be taken. According to him, European pig farmers do not want any support at all.
Scannell explained during the meeting which (positive) things he sees for the future of the pig sector. "Over the past few weeks, prices have stabilized and there has been a slight upward movement. This is remarkable, because prices normally fall at this time of year. Of course, it is too early to conclude that things are going in the right direction." , but it does give hope that we have bottomed out. Also the upward movement of piglet prices is encouraging."
He also indicated that the production cycle is six months and the sector can therefore scale down quickly, but that this has not happened. "The sector has to adapt." He also commented on the high prices: "The costs are high, but we have to trust the European Central Bank that inflation is temporary and that we will return to more normal prices, including energy prices, during the course of this year."
Scannell says there are limits to what the European Commission can do, other than ensuring laws, regulations and good export conditions. "We have to realize what tools we have at our disposal; there are no provisions for intervention measures in this sector and there are no direct payments. Private storage is a possible measure, but it also has limitations." According to Scannell, European pig farmers also want no aid at all, but want feed costs to fall, third countries to accept regionalization decisions (from countries affected by African swine fever) and an end to Covid restrictions. "They are also very well aware that European support always comes with conditions. It is not just a blank check that is written."
Smaller family businesses are having an extra hard time
MEP Bert-Jan Ruissen (SGP) is disappointed that the European Commission does not want to support the sector. According to him, the opportunity to intervene is there. "There is an article that provides room for extraordinary market measures. There is room in the budget for crises. The situation is so urgent; there are acute liquidity problems," said Ruissen when asked in a response to Boerenbusiness. "The great fear is that it is especially difficult for smaller family businesses. The result is an increase in scale: larger ones will take over the small ones. You also want to continue to offer smaller companies a future."
Earlier this month, Ruissen, along with twenty other MEPs, including Annie Schreijer-Pierik (CDA), co-signed a fire letter to indicate the need for broad support for pig farmers. In it they describe the crisis in which European pig farmers find themselves. Feed prices are at their highest level in eight years, while pork prices have fallen. "This combination of an unfavorable market situation and high production costs weighs extremely heavily," said the MEPs in the letter. “Short-term support is critical for the industry to survive the current crisis and reposition itself, to be ready for a more sustainable future to meet the Green Deal.”
'It helps if agricultural ministers increase pressure'
The MEPs are not letting go of the issue. The official response to the letter is still awaited. Ruissen: "We will increase the pressure with colleagues on the Commission to do something. It also depends on the European agriculture ministers. There are a number who want to, but it helps if larger numbers exert pressure." The Dutch minister of agriculture also falls among the ministers who have so far not exerted any pressure.
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