Monday January 17, 2022, in Brussels. Kaspars Gerhards, the Minister for Agriculture, while meeting Janusz Wojciechowski, the Commissioner for Agriculture of the European Commission, repeatedly pointed out that COM must provide extraordinary market support and financial support measures for Latvian pig sector, being in a critical situation. The meeting was organized on the initiative of Kaspars Gerhards, the Minister for Agriculture.
Since the beginning of 2022, the price of pig meat has reduced by 14,4%. The situation in pig sector is even more aggravated by growing production costs – the prices of fodder, electricity and gas are increasing.
Kaspars Gerhards: “Financial situation of Latvian pig breeders has reached the critically lowest level – it has reached the limit of survival. Our pig breeders are losing their share in Latvia’s market, which is flooded by cheaper pig meat from other EU Member States. Besides, it must be noted that the amount of pig meat produced in Latvia is comparatively low therefore, Latvia cannot be blamed for overproduction. We are requesting the EU to provide extraordinary support for Latvian pig producers to cover huge losses and strengthen the sector.”
Whereas Janusz Wojciechowski, the Commissioner for Agriculture explained that at present time it would not be useful to launch the EU level support measures because they will not result in expected improvements for the most affected States and holdings. At the same time, the Commissioner confirmed that in the next weeks, Commission will continue assessment of pig meat market trends and in case the situation is not improving, will consider possible solutions once more. The Commissioner emphasized that the best solution for Member States would be to use the possibilities provided by the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak.
Also, at Council meeting of the EU Ministers for Agriculture and Fisheries, held today in Brussels, Ministers for Agriculture discussed the situation on food market. At the Council meeting, Kapars Gerhards, the Minister for Agriculture informed the EU Member States and COM on the financial situation of Latvian pig producers whose solvency has fallen to the critically low level.
Since the autumn of 2021, purchase price of pork has been constantly decreasing (except for a slight increase at the end of 2021) and is still at the critically low level. Unfortunately, some pig farms were compelled to partly stop the production due to the critical situation. At the beginning of 2022, one of the strongest and well-known pig farm SIA “Kunturi” has been put on the market.