While budgetary restrictions with respect to export refunds were relaxed in order to combat the existing crisis, the expectation would be that this position is likely to be reversed as prices strengthened out of the current slump. The EU Outlook These events will have considerable implications for projected EU and Irish pig output in future years. EU pig prices are projected to remain depressed through 1999. The projected shape of the EU pig sector is summarised in Table 6. A particularly pronounced expansion of the EU pig sector manifested itself in record production levels in 1998 with a similar prospect in 1999.
Prices are at correspondingly low levels.
Rationalisation of production takes place due to the low prices with only a gradual recovery to follow in the aftermath of the existing uncertainty. The Outlook for Ireland Table 7 shows the main pig sector variables for Ireland. In 2000 a recovery in pig prices is projected, however, under the Baseline, prices do not return to the levels experienced in the 1996-1997 period, with prices more likely to fluctuate around an average of about 94p per kg through the rest of the projection period. Main Irish Pig Variables under Baseline and Agenda 2000. In the immediate term, there will be an appreciable contraction in the volume of pig output at both an EU and Irish level.