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Vytautas Tėvelis, director of the Lithuanian Poultry Association (LPA), said that from 2020. After the closure of public catering establishments in mid-March, large commercial farms suffered the greatest impact and production losses.
“Every day 400 tons of poultry meat were delivered to the Lithuanian market. A similar situation occurred in Poland, the largest poultry producer in Europe. Polish producers also started selling on the Lithuanian market, causing prices to fall by 40-50% in some sectors. Feed prices rose 40 percent, hitting the sector for the second time. Just because of the drop in export prices, we estimate that we have 1 million. another million due to falling domestic prices. Today there are 5 companies in the sector that have closed and the turnover of another 8 companies has decreased more than 30% ”, he said.
Photo by Lukas Balandus / 15min / Vytautas Tėvelis
V. Tėvelis emphasized that poultry farming is like a transporter production, after which it is impossible to extend it at the same rate: when starting to raise chickens, the raised birds are slaughtered and sold to make room for new ones.
The association estimates that poultry production fell 20% in November and December, and the drop earlier this year could reach 40%. According to V. Tėvelis, the necessary support, evaluating the current situation, should reach at least 15 million. euros.
A sold pig brings a loss of 10 to 45 euros
Algis Baravykas, director of the Lithuanian Pig Breeders Association, recalled that the pig sector supplies 50% of the pork. Lithuanian market, directly employs 1,5 thousand. people.
“With the poultry sector, we are similar in that we are in the sector of conversion of grains to meat and eggs. We constitute 15.5 percent. agricultural markets and we are not an insignificant sector. We produce products for around 365 million a year. “said A. Baravykas.
Luke April / 15min photo / Algis Baravykas
According to him, the situation of pig farming in Lithuania during the pandemic deteriorated significantly due to the impact of external markets: Asian countries began to buy grains en masse and caused feed prices, which account for about 70 percent. pig production costs.
Due to the reduction in demand, the price of pork has also fallen, so that now each pig sold carries a loss of about 10 to 45 euros. However, there are no plans to stop production, as this would make it difficult to return to the same volume, with a pig production cycle of around 300 days.
He was outraged that the Lithuanian authorities did not speak of support for these sectors when Austria allocated LTL 40 million to rescue its pig sector. 14 million euros, Latvia euros. “If this continues, it is possible that poultry and pig farming does not exist in Lithuania,” he said.
Manufacturers report taxes paid and support received
Darius Gudačiauskas, manager of the Vilnius and Kaišiadorys poultry farms, said some other branches of agriculture receive more help from the state, although they generate questionable returns. He repeatedly mentioned the organic agriculture sector, which received $ 42 million last year. but, according to the manager, it does not create added value in practice.
“Last year, the state distributed 300 million. euros for agriculture, but it doesn’t seem like an economic approach to me. I do not want to belittle other branches of the economy and I am not saying that we have to take them away and give them to us, but the state should allocate money, we do not ask to compensate all the losses, the companies take part of them. ,
Photo by Julius Kalinskas / 15min / Darius Gudačiauskas
Jonas Jagminas, Head of the Grupo Cooperativa Agropecuaria Agroaves, He said the farms under his leadership are empty because buyers haven’t had a chance to buy poultry since the fall.
“The situation is really dramatic, the increase in cereal prices will distort the entire food market and very soon we will feel the consequences.” We calculate the taxes paid by our cooperative, they amounted to 2.6 million. by year. There can be no further delay, as the sector, which has paid its taxes correctly, has found itself on the edge of the abyss. Urgent decisions need to be made without delay, not for a single day, “he urged.
123RF.com nuotr./Vištos
During the last three years, the cooperative has grown between 22 and 24 thousand. tons of poultry.
Suspension is being considered
D. Gudačiauskas highlighted that without the support, in October the poultry farms belonging to the KG group had to give up part of the services of the farmers from whom they buy poultry meat. Also 50 percent. reduced poultry processing capacity. Kaišiadorių paukštynas and Vilniaus paukštynas employ 2,300 people with their subsidiaries.
Group companies represent 37%. Lithuanian exporters have the largest share of the Lithuanian market: 45%.
The pig sector employs around 1,500 people and another 6,000 people are employed in related segments: supply, processing, trade and other activities.
„Reuters“ / „Scanpix“ nuotr./Kiaulės
A. Baravykas said that pig farms are now considering whether to stop insemination of sows, because they do not know if this meat will be sold in the future.
“If the farms stop it, they won’t grow bacon for 10 months. Actually, this decision means to interrupt the entire production cycle and stop production. It is not possible to ‘turn off’ or ‘turn on’ the farm with a single button. we receive help, we will have to withdraw, “he said.
Fear of the economic and social consequences for the regions.
The mayor of the Kaišiadorys district municipality, Vytenis Tomkus, said he did not hide that the situation was very worrying due to the poultry business operating in the region.
Kaišiadorių Paukštynas is the largest employer in the district, with 760 employees. Both Ž B Nematekas and UAB Rumšiškių paukštynas, as well as poultry farmers and farmers operate here. The possible collapse of this sector would have significant negative social and economic consequences for the entire area. We are talking about thousands of unemployed and increased state spending in the social field, loss of state and municipal budgetary income, “the mayor is quoted in the press release.
Photo by Sigismund Gedvila / 15min / Vytenis Tomkus
It is also supported by the Mayor of the Vilnius District Municipality, Marija Rekst. The Vilnius district municipality is also calculating the potential damage to the entire region if the Vilnius poultry farm operating in this district is closed.
“AB Vilniaus Paukštynas is one of the most important employers in the Vilnius district. Last year, our people were paid about 12 million. euros. Beyond that, there are thousands of families who may one day be without income. We understand what the consequences could be. This would be a very heavy burden on our entire Government, “Mr. Rekst commented on the situation.
The Seimas committee recognized that the situation was unacceptable
Government representatives also acknowledged the difficult situation at the Seimas Rural Affairs Commission session last week. It is true that the company did not listen to the desired responses.
“When we arrived, we did not find any credit to allocate money to aid,” said Deputy Minister of Agriculture Paulius Lukševičius. He assured that he had approached the Ministries of Economy and Finance, but did not receive a positive response to the support. According to representatives of the Ministry of Agriculture, he is determined to respond quickly to problems, but so far there is no money from the national budget.
Erik Ovcharenko / 15min photo / Premises of the Ministry of Agriculture
The commission decided to declare to the Government, the Ministry of Finance and the Ministry of Economy and Innovation that the meat producers and processors sector should be equated and treated as equivalent to other businesses. Therefore, support for victims of the pandemic should not ignore the meat industry in the agricultural sector.
Another proposal is to oblige the Ministry of Agriculture to carry out analysis and organize the support, and the third proposal is to request such support from the Government of the Republic of Lithuania. It is planned to oblige the government to submit responses before March 1.
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