Lithuanian pork industry is on the verge of collapsing

02-08-2011 | |

Since the discovery of Classical Swine Fever in Jonava district, almost half of the pork producers claimed that they are operating on the brink of survival, due to significant reduction in consumption and prices.

Classical Swine Fever has caused serious damage to the industry, particularly because Russia has closed its market to exports, and now the entire volume of pork of domestic producers should be realised in the Lithuanian market, where the prices are 10%-15% cheaper. The situation is exacerbated by the ban on export supplies in the EU, which resulted in many farms having lost the opportunity to sell their production.
Industry representatives estimate that due to the closing of trade partners’ markets, producers will be losing about 3-4 million lit per month (US$ 1.25-1.67 million). According to the association, at least half of the farms operate on the verge of survival. By decision of the European Commission export of pork from Lithuania is banned until the end of October.
“Therefore, the whole industry is on the verge of collapse, and only an intervention of the state could save the situation, because according to even the most optimistic forecasts, 45% of farms will go under within the next two months,” say representatives of the Lithuanian Association of pork producers.