Stables Overcrowded with Animals, but the Biggest Problem is Yet to Come…

Representatives of the government and retail chains are expected to meet at the Ministry of Economy to find a solution for the surplus of meat and meat products in the market. The meeting was arranged earlier and is a result of a previous meeting between representatives of the meat industry and livestock farmers with Prime Minister Andrej Plenković. As can be heard, entrepreneurs have managed to alert the Banski dvori to resolve the issue of market surpluses that producers have been facing since April.

At the meeting with the Prime Minister, which lasted a good two hours, participated Minister of Agriculture Marija Vučković, who is also the initiator, and Minister of Economy Darko Horvat. Among the industry representatives were Mirko Ervačić (Osatina group), Marko Pipunić (Žito), Ivica Pivac (Pivac Group), Mario Ravlić (MI Ravlić) and members of the Baby Beef association Toni Raič (Stočarstvo Raič), Zvonko Širjan (Širjan) and Darko Celovec (Agro-vet). Also present was a representative of companies in the Fortenova system, director of the Croatiastočar association Branko Bobetić, and several others. Although we contacted many producers, most of those who attended the meeting did not want to discuss the issue, but we have learned that several conclusions were made.

One of them, as mentioned, is a conversation with retailers who should be suggested to ‘pay attention’ to domestic production, which is being hindered by quite cheap imported products from EU countries, with some of them, it was heard at the meeting, even offering additional discounts on such products. For this reason, the Prime Minister instructed Minister Horvat to talk to retailers.

It was also suggested that the government adopt a measure similar to the one adopted by the Slovenian government back in early April, allowing the suspension of imports of meat products into Slovenia even from EU countries. A good connoisseur of the meat market says that no one reacted in Brussels, and based on such a decision, unofficially we learn that many Slovenian retailers have informed (also) Croatian producers that their products will not be able to be on store shelves in the upcoming period. However, for now, there are no indications that the Croatian government, even with a significant delay compared to the Slovenians, will take such a step, except to talk to retailers. That the situation is serious is confirmed by Mario Ravlić, who, as the president of the HGK’s Slaughter Industry and Red Meat Processing Group, says that serious disruptions have occurred in the EU pork market, primarily caused by the emergence of two viruses.

– Before the coronavirus epidemic, primarily due to increased demand in China due to the emergence of African swine fever in that country, producers in Croatia and the EU were achieving very favorable prices. The Union responded to that demand by increasing production. Unfortunately, the pandemic completely disrupted trends: demand fell and market surpluses appeared, so now a kilogram of pork, which was purchased on the EU market for 3.60 euros before the pandemic, can be obtained for 2.30 euros – says Ravlić.

He estimates that there are currently five thousand surplus pigs because, according to the director of Croatiastočar Bobetić, thirty percent less have been slaughtered since April, which is why slaughterhouses are also suffering the consequences. Bobetić reminds that even in March, due to significantly higher demand, production was increased not only for pork but also for beef and especially chicken, and companies were operating in three shifts, but in April, demand suddenly fell.

You can read the whole story about the problems in the meat industry in the new edition of digital and printed Lider.

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