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Vladimir Ivanovo (VŽ) nuotr.
Due to the pandemic, the poultry sector, which estimates millions of losses, does not receive state aid and announces the planned reduction in the production of poultry meat, it is possible that in the near future a decision will be made on the closure of the Kaišiadorys poultry farm.
“As head of administration, I can no longer play with shareholders without recommending solutions. My recommendation is to reduce company losses by closing the processing factory,” says Darius Gudačiauskas, General Manager of Vilnius and Kaišiadorys Poultry Farms.
VŽ wrote that 85% of the country’s poultry processing farms say they cannot survive without state aid. Poultry farm revenue fell 9% last year, corporate profit margins fell from 12% to 3% and operations generated $ 13 million. Loss of euros.
According to Mr. Gudačiauskas, without further support, the company is forced to take steps to reduce losses: “We are stuck in a corner.”
Reduce production
The report states that the Vilnius and Kaišiadorys poultry farms informed Lithuanian farmers today, from whom they buy broilers, that they will terminate 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 – the Kaišiadorys poultry farm.
The company is the largest employer in the Kaišiadorys region: the poultry farm employs almost 800 people.
The Vilnius and Kaišiadorys poultry farms cooperate with 17 Lithuanian farmers, of which more than 16 million were bought last year. broilers. Today, farmers have received official announcements from the Vilnius and Kaišiadorys poultry farms that the purchase has been suspended since May due to the difficult financial situation.
The poultry farms of Vilnius and Kaišiadorys buy almost 35% of the broilers needed for production from Lithuanian farmers, 65%, on their own poultry farms. In total, these poultry farms process almost 45 million. birds.
See indifference
“Last year, the government approved 20 million for poultry. 5.6 million euros of real aid. Eur, which is only 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.
At its meeting last week, the Rural Affairs Commission, which considered a request for assistance from poultry farmers, decided to instruct the Ministry of Agriculture to conduct an analysis of the support needed by poultry processors and request it from the government.
February 25 Kęstutis Navickas, Minister of Agriculture, met with representatives of the poultry and pig sectors. It was decided not to comment on this meeting, which D. Gudačiauskas calls in operation.
The Vilnius and Kaišiadorys poultry farms belong to the KG Group. amounted to 67.9 million. EUR.
[infogram id=”e55c0d57-a1a8-447a-893c-4d9527d31f31″ prefix=”xec” format=”interactive” title=”AB Vilniaus paukštynas ir AB Kaišiadorių paukštynas finansiniai rezultatai 2018-2019 m.”]
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