Estonian pig farmers seek state aid as pork prices fall below costs

Estonian pig farmers are seeking state support to cope with pork prices below production costs, but they received no major promises at a meeting with the Ministry of Regional Affairs and Agriculture on Tuesday, ERR reported.

Europe is facing an oversupply of pork after African swine fever closed many export markets. Production from major pork-producing countries such as Germany, the Netherlands and Spain is now remaining on the local market.

The situation has created an anomaly in which the market price is lower than the cost of production. The European market price is about 1.60 euros per kilogram, while production costs Estonian farmers 1.80 euros or even 1.90 euros per kilogram.

“We have animal-welfare production, and our pigs grow on straw. We work with more staff and also deal with straw and various additional activities to ensure their welfare. So if large producers are in a difficult situation, the smaller ones who have to carry out these activities with their own resources are certainly in a difficult position,” said Made-Britta Eensalu, head of Vasula Farms and a member of the association of deep-litter pig farmers.

Pig farmers said the sector’s importance extends beyond food production.

“We could produce practically all of Saaremaa’s current gas needs from pig farming waste. The strategic importance of pig farming is not only food production and food security, but also energy security and the production of fertiliser from the perspective of crop farming,” said Lauri Jasmin, an environmental expert at the Estonian Biogas Association.

Representatives of both large and small producers asked the ministry for emergency support and state aid.

“We believe that we need to make production more efficient, but this cannot be done without investment. The state must contribute, either through aid or through some kind of measure,” said Valmar Haava, a board member of United Pig Farms.

Madis Pärtel, deputy secretary general at the Ministry of Regional Affairs and Agriculture, said one existing measure could be strengthened.

“Under the Common Agricultural Policy, there is one measure for pig farmers that we can increase to some extent to compensate for possible losses in the sector. On the other hand, we can write to the European Commission and communicate with neighbouring countries facing the same problem to ease the situation. We certainly plan to write to the commission together with the pig farming sector,” Pärtel said.

Pig farmers said this would mean that support would not reach producers before next year.

“I am speaking more on behalf of small pig farmers. I think the moment of truth will come for many at the end of the year. Those of us working across the entire value chain have more room to manoeuvre. But if prices do not rise, I think information about producers leaving the market will start coming at the end of November and certainly in December,” said Priit Dreimann, a board member of Maag Agro.

Dreimann said it would be enough if the state helped cover the difference between production and sales prices for as long as the current anomaly continued. Farmers did not receive such a promise at Tuesday’s meeting.