EU private storage aid scheme for beef and lamb expected this month
Beef and lamb industries inside the EU may receive help from a private storage aid (PSA) scheme that could be in place for three to five months. Under the scheme, products would temporarily be withdrawn from the market place, with the aid supporting storage costs. This would be in addition to other measures previously announced. No similar scheme has been proposed for pig meat as exports to Asia are running high and demand in Eastern European states such as Poland, Bulgaria and Romania hasn't been disrupted by the coronavirus crisis.
Under the scheme, €25 million (or 25,000 tonnes) would be available for beef and veal. Industry reports suggest most of the beef storage would be directed towards storing steak. Steak sales in Europe are struggling, causing carcass balance issues due to increased demand for cheaper products such as minced meat. A further €20 million, (or 36,000 tonnes) would be available as part of a similar scheme for sheep.
For now, it is not yet clear how much support any particular country could receive but the volume of PSA available is relatively small compared to production figures in the bloc. The beef PSA volume would represent just under 4% of a single month’s production in the EU, and the sheep meat PSA would represent just under 60%. The EU plans to agree to the scheme by the end of April.
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