The year 2014 was particularly difficult for the farmers and food processors.
Source: Bloomberg
Year 2014 was extremely difficult for farmers and food processors – says the director of the Institute of Agricultural and Food Economics Andrew Smith.
This year, we have to deal with a variety of different events, which have been detrimental affect agriculture and food exports depressant. 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 in an interview with PAP 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 stressed or manufacture serów- 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 growing 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 is close. The political situation, however, shows that you need to look for new markets. That is often 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.
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