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This year, we have to deal with a variety of different events, which have been detrimental to agriculture and inhibitory influence on food exports. These include: an African swine fever (ASF), the Russian embargo on Polish food black PR, eg. In the Czech Republic, Slovakia, the United Kingdom, Ireland), and the downturn in the global food market – enumerated professor.
He added that all these factors have made this year was unusual, as in previous years, the farmers’ income increase, while in the fallen. In 10 months of this year amounted to 5-6 per cent decline. Part of the revenue shortfalls will reveal even in the first months of 2015.
The economic situation has deteriorated farmers also because of a good harvest. Better harvest means the lower the price, the more that the harvest was also in other countries in Europe and outside the Union. At the same time dwindled markets. Ban on imports introduced by Russia affected not only in Poland but all EU countries, the United States, Canada and Australia, and so many countries have a surplus of food.
Although we sent to Russia just 6 percent. exported food, the embargo is painful for many manufacturers. It suffered the most from the producers of apples and vegetables. Its effects are feeling and producers of cheese – said Smith. In his opinion, but if you consider that the greatest volume of exports of apples occurred mainly in the winter, the problems growers may appear on a large scale until next year.
As he spoke, a long time, the world is plunged into stagnation, not rising incomes of the population, and that means less demand for food. Therefore, it is more difficult to sell the products and their prices are lower than a few years ago during good economic times. Under these conditions, Polish exports of agri-food is quite good. From the existing data on foreign trade show that will be at least at the level of last year and will amount to more than 20 billion euros, with an even better trade balance, as exports grow faster than imports.
– Russia was a good trading partner because it is close. The political situation, however, shows that you need to look for new markets. This often means the need to adapt production to specific customer requirements – said the head of the Institute. He added that it may be that in some cases will be less profitable exports than before.
The problems also feels the meat industry, but in this case the reason is the ASF, which closed many markets: Eastern and Asian countries. The difficult situation in pig production is also the result of many years of neglect. The number of pigs in our country is falling and rising imports of meat. According to the professor, “there is insufficient mechanisms to adapt to the requirements of pig producers industry and trade.” He stressed that this is a complex issue, among others, there was no “climate” for creating large-scale pig farms in Poland there is a small concentration of production, and this affects the cost. In addition, all the time is the belief that the Polish pork is the best quality, the consumer is expected of such meat, which means that you do not need to change farming technology. This is obviously not true – he added.
According to the professor, not the situation on the milk market is not bad, although the industry is also feeling the effects of the Russian embargo – there have exported a large amount of cheese. However, problems can worsen due to the decline in demand for dairy products in the world. The industry produces so much that the domestic market is not able to absorb the entire production, dairies must expect a price drop. In addition, milk producers already hit EU penalties for overproduction and threaten them with another, this time much higher – noted Smith.
beef export was inhibited because of the ban on ritual slaughter. Prices of meat decreased and the profitability of farming has significantly decreased – said Smith. As he spoke, there was also confusion about traditional methods of smoking meats, and the arguments put forward by the manufacturers of such meats, it is not possible to change the technology to less harmful substances getting into the meat, not been building a positive image of Polish food.
For all the events this year coincided with uncertainty about the new rules of the Common Agricultural Policy – explained Smith. extending the work on the new financial perspective and allocations in national envelopes, negotiations with the European Commission on the shape of the RDP, inadequate safety net, limiting the negative effects of adverse natural phenomena and economic.
This year, we recorded a decline in food prices. Such a phenomenon can be enjoyed in a short time consumers, but does not encourage it to production. With deflation may lack funds to restore production and then you have to reduce their own consumption or investment. We do not know how to keep farmers. According to Smith, if they consider that there are reasons for the improvement of the market situation, it will take up production despite low prices. – My job, in a few months, the market situation will improve – said Smith.
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