Large Lithuanian poultry farms did not resist: they promise to terminate contracts with farmers and close the processing plant

According to the company’s report, poultry farms that do not receive state aid inform farmers about the reduction in production and discontinuation of cooperation, and consider closing the Kaišiadorys poultry farm.

It is reported that the poultry sector, which estimates millions in losses as a result of the pandemic, does not receive state aid and has already announced plans to reduce poultry production. Today, the Vilnius and Kaišiadorys poultry farms informed Lithuanian farmers, from whom they buy broilers, that they will rescind the cooperation agreements and stop buying poultry from May.

It also plans to make a decision in the near future to close one of its factories: Kaišiadorys Poultry Farm. Representatives of the poultry industry affirm that Prime Minister Ingrida Šimonytė, who stated in the media that she was delving into the consequences of the pandemic for this sector, has so far not shown any involvement in this matter.

“Last year, the former Minister of Agriculture, after learning about the problems of poultry, immediately expressed his desire to visit our factories and see the production behind the scenes. This year, the poultry industry was immediately ‘canceled’, while no representative of the new government, including the Prime Minister, came to visit us. So what kind of deepening are we talking about? “says Darius Gudačiauskas, Managing Director of Vilnius and Kaišiadorys Poultry Farms.

As he points out, the new government is now three months old and until it demonstrates its inefficiency and indifference towards the entire poultry and production industry, the sector sinks every day into a deeper crisis. Since November alone, the Vilnius and Kaišiadorys poultry farms have accumulated 4.6 million. Loss of euros.

“Last year, the government approved 20 million for poultry. 5.6 million in real terms, which represents a total of 28%. And this year, we have to demonstrate again the negative impact of the pandemic and the importance of large companies as holders and integrators of external markets, which can help small farmers to survive. For the government, we are like a hot potato that is thrown at each other, and there are no real solutions, we have to act, because waiting is also ruining us. The poultry cycle is long, so we must inform farmers about the termination of contracts already today, “says D. Gudačiauskas.

The Vilnius and Kaišiadorys poultry farms cooperate with 17 Lithuanian farmers, of which more than 16 million were bought last year. broilers.

“We will also have to make a decision on closing our own processing plant. The manager gives the decision to shareholders to close one of their factories: Kaišiadorys Poultry Farm, which is the largest employer in the Conservative-run region, creating almost 800 jobs. We are cornered and there are simply no other alternatives, “says D. Gudačiauskas.

As he points out, poultry farms paid more than $ 13.663 million to the state budget last year alone. EUR tax, this is an amount higher than the requested support.

Sigitas Petkevičius, who has been farming in Kaišiadorys district for three decades, grows around 1.5 million trees a year. broilers. He does not hide the fact that the situation is dramatic and, having received information about the suspension of cooperation with the Vilnius and Kaišiadorys poultry farms, he does not know what to do.

“Where to put all these birds? Who will buy them and who will recycle them? If the larger processor stops working, what can we do? ”Says S. Petkevičius. As he points out, poultry farming didn’t come about in a day, but developed steadily.

“We can only sell brood poultry on the Vilnius and Kaišiadorys poultry farms, because nobody has the Scandinavian markets and that capacity,” adds S. Petkevičius.

“There are only two options: we will continue to work if the Vilnius and Kaišiadorys poultry farms continue their activities, or we will close the poultry farms and ‘hang’ on the state allocation. We will have no other option and we will be left without work and without income. We are talking about the entire production chain “from field to table”. These include the production of forage from Lithuanian cereals, day-old chicks and the rearing of breeding birds and, finally, the production of the final product. consequences will be felt throughout the chain. It is both angry and terrifying for what can await us, “says Ritutis Tamošiūnas, who has been cooperating with the Vilnius and Kaišiadorys poultry farms for 11 years and also grows Kaišiadorys chickens. fattening.

The poultry farms of Vilnius and Kaišiadorys almost 35 percent. 65 percent of the broilers required for production are purchased from Lithuanian farmers. – raised in their own poultry houses. In total, these poultry farms process almost 45 million. birds.

Delphi addressed a comment to the Ministry of Agriculture. Once received, we will recharge it.

Transaction with Linas Agro Group

Delphi recalls that on October 2 of the previous year, Linas Agro Group entered into a contract for the sale of shares of the controlling stakes in AB Kauno grūdai, AB Kaišiadorių paukštynas and AB Vilniaus paukštynas and related companies. The competition councils are awaiting decisions on mergers.

On Thursday, the Competition Council of Latvia approved a resolution authorizing the Linas Agro Group to implement the concentration and acquire companies belonging to the KG Group. In the ruling, the Latvian Competition Authority states that the market for Lithuanian groups of companies is geographically larger than the territory of Latvia and that the transaction will not substantially change the structure of the Latvian market, reduce competition or strengthen the dominant position of the companies. involved in the transaction.

The decision of the Lithuanian Competition Council on the execution of the concentration is currently pending. The transaction must also be approved by the competition authorities of Russia, Poland and Estonia.