Consequences of quarantine: When Lithuanians were unable to go to Poland, the scale of the dark meat market in Lithuania became apparent

However, this growth is not related to the desire of Lithuanians to strengthen immunity with meat products, but simply to the fact that after closing borders and part of the markets, it was no longer possible to import unaccounted meat from the neighboring country and our compatriots. Market merchants even started buying products from local processors, which was never the case.

A new trend

The State Food and Veterinary Service sees another trend: With tighter controls on imports, processing and traders, shadow food traders have launched on the Internet. In addition, the market and online sales have been adjusted.

“The quarantine showed that the shadow market in Lithuania is very large. While there had to be a general decrease in sales that occurred in other European countries, our retail sales were growing. There was simply no shadow trade left and people started buying in stores. Prices have not changed, “says Egidijus Mackevičius, Director of the Lithuanian Association of Meat Processors.

He says this period has simply shown that illegal trade is huge, as have the state’s losses due to unpaid taxes. E. Mackevičius calculates that the shadow market occupies a third. Last year, the legal meat trade was 450 million. euros

More checks

“The market is a serious competitor, but the regions are different. For example, in northern Lithuania, market traders buy from processors, in southern Lithuania a lot of illegal production. There is also a lot of shadow production in Kaunas and Vilnius, ”says E. Mackevičius.

He emphasizes that shadow is promoted by two things. Firstly, we have higher VAT rates than in neighboring countries and social support for the unemployed or low-income people, which encourages them to obtain part of their income illegally.

“This year we control the control of imported meat and its products from all EU countries.” 24 hours ago Companies wishing to import these products must notify us and we have inspected the lots. Within 4 months we ban the marketing of approximately 50 t. poultry. During quarantine, official imports increased. 3,500 tons of pork have been imported since the beginning of the year. more than in the same period last year. We import an additional 2,500 tons of poultry meat, ”says Mantas Staškevičius, Deputy Director of the State Food and Veterinary Service (SFVS).

Explain why such an increase in imports: only companies can import products. People could not cross the border. Just put. “Get on the bus and bring the goods” was no longer physically possible. Neighboring countries have lower VAT and cheaper products.

“It was only officially possible to enter when the quarantine began. Market traders approached Lithuanian processors asking for products. This has not been the case before,” explains M. Staškevičius.

Market inspections showed that almost half of the cases were raped. From quantity mismatch to unauthorized trade. If 50 t is not allowed, then 3.5 t were withdrawn from the market. production. Since the beginning of the year, four illegal meat shops have also been found. The SFVS does not disclose where these facilities took the raw material and where the products were sold; other services continue the investigation. In one of these workshops, more than a ton of raw material was taken.

E. Mackevičius also explains why such production is attractive: the cost is much lower than when working legally. First, there is no need to invest in equipment, as the costs of meeting SFVS requirements are high. In addition, it can be done with unclear raw materials and nobody will have to pay.

“Every food producer must have a permit to guarantee food safety. We did not know anything about these workshops. They imported raw materials, which they legally bought and processed and sold without complying with the requirements,” explains M. Staškevičius, the details.

Massive damage

It also identifies a new trend: more and more illegal manufacturers sell their products not on the market, but on the Internet. Of the 82 ads inspected for delivery on advertising portals and Facebook, 49 were raped. Most simply did not have permission to participate in that activity. Another popular violation is the mismatch in advertising, as the products were advertised as healthy, although they were not.

“The Internet is probably the next stage after the market, although smaller quantities are sold there. The most popular for selling bread, confectionery. Second, there are meat products: canned foods, sausages, which are quite popular,” says M Staškevičius on how the market is changing and says that it seems to buyers that if a small producer sells it, that product will be safe and ecological, but in reality, its quality and production conditions are not controlled by anyone.

Last year, the sales rules were changed and the announcements must indicate the number issued by the veterinary service to the manufacturer so that the buyer can see that the product is under control. Even more so to simplify the requirements for small producers and to be able to legally produce products in their homes and sell them.

The shadow will return

“At the end of the quarantine, the shadow can return to normal. People are looking for cheaper products. There are no legal measures to stop traveling to neighboring countries. However, next year, the State Tax Inspectorate will introduce a new electronic accounting system in the commercial market. These will be great opportunities for control “, M. Staškevičius is not optimistic.

E. Mackevičius does not expect the same growth after quarantine. Due to congested supply chains and dysfunctional catering establishments across the EU, beef cannot be sold at normal prices. Restaurants bought individual expensive pieces that would increase the price of the entire case. Overproduction of poultry is huge and it will be difficult for our producers to sell it.

“The only meat that is not in trouble is pork. We are not growing it enough. It is a bit cheap because the Chinese and the Americans have agreed to trade, and we have reservations to lower the price. However, we ask that the Retail chains at least do not import cheaper Polish products. We can implement their terms, but we need to sell as many as possible. Otherwise, we will not reduce the cost, “predicts E. Mackevičius.