Search our website enhanced by Google.
EU to open private storage aid scheme for beef and lamb
Thursday, 23 April 2020
On 22 April the European Commission proposed that Private Storage Aid (PSA) could be made available some agri-food products, including beef and sheep meat. The period of storage would be between three and five months. Under the scheme, product would temporarily be withdrawn from the market place, with the aid supporting storage costs.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.
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 similar carcase balance issues as seen in the UK. A further €20 million, (or 36,000 tonnes) would be available as part of a similar scheme for sheep.
As the UK is still in the transition period as it leaves the EU, it could apply for some of the support available under PSA.
How much support could this actually offer?
Although it is not yet clear how much support any particular country could receive, we can compare the volume to EU production.
Typically each month during late spring/early summer the EU produces around 60,000 tonnes of sheep meat and upwards of 600,000 tonnes of beef. The volume of PSA available is relatively small in comparison. 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%.
Other measures were also announced as part of this proposed package, including storage aid for other agricultural products; exceptional derogation from EU competition laws for some sectors (although not red meat); and some flexibility around the EU school milk, fruit and vegetables scheme.
The EU plans to agree the scheme by the end of April.
Sign up for regular updates
You can subscribe to receive Beef and Lamb market news straight to your inbox. Simply fill in your contact details on our online form.
While AHDB seeks to ensure that the information contained on this webpage is accurate at the time of publication, no warranty is given in respect of the information and data provided. You are responsible for how you use the information. To the maximum extent permitted by law, AHDB accepts no liability for loss, damage or injury howsoever caused or suffered (including that caused by negligence) directly or indirectly in relation to the information or data provided in this publication.
All intellectual property rights in the information and data on this webpage belong to or are licensed by AHDB. You are authorised to use such information for your internal business purposes only and you must not provide this information to any other third parties, including further publication of the information, or for commercial gain in any way whatsoever without the prior written permission of AHDB for each third party disclosure, publication or commercial arrangement. For more information, please see our Terms of Use and Privacy Notice or contact the Director of Corporate Affairs at info@ahdb.org.uk © Agriculture and Horticulture Development Board. All rights reserved.