Estonia: Pig farmers request emergency financial aid
Three large pork production enterprises in Estonia have asked the Ministry of Agriculture to rescue the Estonian pig farming from bankruptcy.
AS Valjala Söödatehas, OÜ Rey Seakasvatus, OÜ Hinnu Seafarm asked for 2012 and 2013 financial aid amounting to 12 million euros, according to reports.
"This is the only way to save the pig producers from bankruptcy," stated a letter sent to the Ministry of Agriculture. Farmers say that without government assistance the pig production industry in Estonia in general has no prospects.
"Currently, many investment projects for the construction of pig farms are frozen. They should be implemented with the support of PRIA (Department of Agricultural Registers and Information Board) but the Department has no money, as well as the farmers itself because they currently are working in extremely tough economic conditions," said the letter.
The current problems of the pig breeders in Estonia began in autumn 2008, when on the global market the grain prices started to actively rise while the purchase prices for pork began to fall. However, the biggest blow was followed in March 2012, when the export of live pigs to Russia was shut down which resulted in the purchase price immediately collapsing by 22%. After that almost all pig producers in the country suffer losses as they do not have a sufficient sale market for their production.
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