French Agriculture Minister Julien Denormandie has allocated 270 million euros in subsidies to support the French pig industry. He also plans to urge French supermarket chains to address purchasing prices, and pig breeders will receive deferred payment of social security contributions.
In the initial phase, 75 million euros in direct aid will be quickly disbursed within the next "two to three weeks." This will be a cash grant of up to 15,000 euros per farm. For the second phase (April-May), 175 million euros has been allocated.
The exact criteria will be determined in the coming weeks in consultation with the industry before being submitted to European authorities, as this could be viewed as âmarket interventionâ and âdistortion of competition.â
With this, Paris aims to support the sector currently facing a âscarcity effectâ: sharply higher operating costs (energy, feed) combined with a decline in pork prices. This price drop across the EU is a result of continued high production despite loss of markets (in China), and the increasing spread of African swine fever in Europe.
With this national support, France joins 15 other EU countries that have now set up some form of national assistance. Despite ongoing appeals from several EU countries, the European Commission is unwilling to implement market intervention measures or financial support.
Several 'major' meat-exporting EU countries also oppose market intervention, arguing that it does not solve structural problems but merely provides temporary âpostponement.â
Earlier, Brussels pointed out that three-quarters of the EU pork market is controlled by just a few large meat corporations that can absorb the high costs themselves. The consequence is that mainly small and medium-sized pig farms face bankruptcy, threatening to cause even greater concentration of the pork industry.