March 24, 2008

Czech pork industry to lower production due to high costs
 

Czech farmers have cut down on pig population by 80,000 to 2.6 million in 2007 and the trend will continue due to persistent low prices, according to statistics released by the Agricultural Chamber.
 

The cutback will result in a supply shortage, which would lead to a pork price increase of about 20 percent this year, said Jan Veleba, president of the Chamber.

Some Czech pig producers are closing down entire pig farms because of falling prices, which reached 7.6 percent in 2007, and escalating feed costs.

Veleba said that domestic pork production could cover only 50 percent of consumption in about a year if the unfavourable trend is to continue.

Average per capita pork consumption in the Czech Republic is 41 kg per year, and Veleba said the only way to improve the situation of Czech pig producers is to increase consumption of domestic pork.

Czech Republic imported 130,000 tonnes of pork worth US$404.4 million in 2007, said Veleba, adding that the country imported pork worth US$78.5 million before it joined the EU in 2004.

Agriculture minister Petr Gandalovic said the ministry would try to assist pork producers through preferential treatment in the rural development programme by drawing money from EU funds.