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When the poultry and pig sector was outraged that companies affected by the coronavirus were not receiving support, and when the Kaišiadorys poultry farm even spoke of a possible closure, the Government also approved support for this sector. Agriculture Minister Kęstutis Navickas pointed out that this sector is an important employer in the regions.
The Ministry of Agriculture (MoA) indicates that the preliminary need for funds for poultry is 7.9 million. 4.1 million euros for pig farming. euros.
Companies whose turnover has fallen by 30% will be eligible for the aid. and more, and the maximum amount per company will not exceed the amount of personal income tax (PIT) and income tax that you paid in 2019. The total amount of aid will not exceed 1.8 million. euros.
Farmers will also be able to apply for help, the maximum amount possible: 225 thousand. euros.
The Minister of Agriculture stated that the population could also help this sector by buying Lithuanian products.
Who can qualify
Under the proposed support measure, eligible applicants would be companies engaged in the following activities: pig production, poultry production for meat and egg production, slaughter and / or poultry processing, packaging and / or processing of eggs.
The Ministry of Agriculture affirms that the situation in the poultry and pig sectors is deteriorating in the event of disruption by the COVID-19 pandemic. Comparison of overall averages of Lithuanian poultry farmers in 2020. Fourth quarter revenue with 2019. In the fourth quarter, according to data from the State Enterprise Rural Business and Agricultural Information Center, it is actually more than 20 percent. autumn, and in 2021. January. Income compared to 2019. in January, it fell more than 40%.
“Such a large decline in revenue is due to the fact that processing companies have reduced production volumes in the event of market disruptions and have not entered into contracts with some broiler-raising companies and farmers,” says the Ministry. of Agriculture.
According to the ministry, as a result, the turnover of broiler breeders (8 companies that provided information) was reduced by more than 30%, 4 of which completely stopped raising broilers because they no longer had anyone who to sell them to.
“Pork produced in Lithuania is mainly consumed in the domestic market, therefore, after the closure of the public catering sector, the demand for pork also decreased significantly; this may have contributed to a drop in its price. up to 40% “. said the ministry.
The Ministry of Agriculture noted that due to the relatively long cycle of animal husbandry, the pig sector is inert and it is impossible to abruptly stop or restart pig production under normal conditions. In pig farming, a cycle lasts between 9 and 10 months, and it is necessary to heat large buildings, maintain machinery and not lose skilled workers.
“If, for example, it is possible to suspend the operation of hotels, restaurants, IT or services for a short time and the maintenance costs during downtime are not relatively high, then there is no possibility to do so in livestock. In the livestock sector, farms cannot suddenly stop production and put their employees into downtime, ”says the ministry.
The Ministry proposes to support all companies in the sector, because without the support and closure of at least one “integrating” processing company, the existing value chain would collapse, leading to a loss of competitiveness and export markets.
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