The Netherlands leads the way in the storage of pork

The European Commission opened the private storage scheme for pork at the end of March, as a crisis measure surrounding the war between Ukraine and Russia. So far, 33.000 tons of pork has been brought in. Although the scheme is not running smoothly, it is striking that Dutch market parties are 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 that make use of the storage scheme will receive compensation for this. The longer the storage period, the higher this fee. For hams, shoulders and front pieces, for example, the parties will receive a 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 provided for the volume that is now in storage.

Sensitive topic
The storage arrangement is a sensitive subject. The counter-arguments are that this could delay any market recovery, because then volumes are 'hanging above the market'. The Producers Organization Pig Farming (POV) was therefore against the scheme, as was the German representative ISN.

However, the volume that is now stored is so limited that this (later this year) does not have to be an obstacle to a further 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 Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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