E Ref. Ares(2021)5773688 - 21/09/2021

Warsaw, 17 September 2021
Ref.: DRR.pz.0821.12.2021

MINISTER
AGRICULTURE AND RURAL DEVELOPMENT

 

MrX
Janusz Wojciechowksi

Member of the European Commission
Agriculture European Commission

Subject: Application for exceptional aid for pig producers in Poland

Dear Mr Hogan,

In view of the continuing fall in prices and the development of African swine fever in Poland,
it is in my view necessary for the European Commission to take a decision to activate

exceptional financial aid for pig producers.

I would like to stress that Poland in the Committee on The Common Organisation of
Agricultural Markets — Animal Products informs the Commission services of the very difficult
situation of pig producers in Poland due to the decline in the profitability of production and
the effects of African swine fever. However, the European Commission’s assessment to date
shows that African swine fever has become a widespread problem and dynamic
developments limit the possibility of implementing appropriate support mechanisms for pig

producers.

In the light of the above, | would like to stress that, in a protracted period of low purchase
prices for pigs, producers are forced to bear very high input costs and the consequences of
the veterinary restrictions imposed by the need to combat and prevent the spread of African
swine fever. Currently, it is not possible to carry out viable pig production in Poland,
particularly in areas subject to the above veterinary restrictions. In these areas, in addition
to

Ministry of Agriculture and Rural Development

UL. Joint 30, 00-930 Warsaw
phone: Beisönaldata email: Kancelaria@minrol.gov.pl
www.gov.pl/rolnictwo

the lower purchase prices offered by meat establishments are difficult for farmers to sell pigs,

creating additional losses for farms.

The current (36th week 2021) average purchase price of pigs in Poland of EUR129.99/100
kg is the lowest price among the EU’s leading pig producers and 6 % lower than the average
price recorded in the EU. Industrial feed prices for pigs increased by 14 % in the first half of
2021 compared to the first half of 2020, while in July 2021 the increase in feed prices on an

annual basis was 18 %.

| would like to stress that the pigmeat market coincided with adverse factors affecting the
profitability of production due to the effects of COVID-19 and the price pressure resulting
from restrictions on exports of EU pork to the Chinese market. In the absence of profitability
of production, the number of pig farms in Poland has fallen by as much as 15 % over the last
year and a half only. The further deterioration of pig producers’ margins poses a real risk of

renouncing the production of further holdings.

In recent weeks, Poland has put in place, within the framework of the national aid available,
support mechanisms for pig producers producing in areas affected by African swine fever.
Unfortunately, the current market situation as well as the forthcoming forecasts suggest that

the aid will not be sufficient.

In the light of the above, | am writing to you to propose that the European Commission
activates, on the basis of Article 219. 1 of Regulation (EU) No 1308/20131 of the European
Parliament and of the Council, exceptional financial assistance to pig producers in Poland
producing in the restricted zones || or Ill referred to in Annex | to Commission Implementing
Regulation (EU) 2021/6052):

Where, in the opinion of the European Commission, it is not possible to grant such aid on
the basis of Article 219. Article 1 of Regulation (EU) No 1308/2013 of the European

Parliament and of the Council is hereby requested to mobilise assistance pursuant to Article

220(1) (a) of that Regulation.

» Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a
common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC)
No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 Journal L 347, 20.12.2013, p. 671, as amended).

(2)Commission Implementing Regulation (EU) 2021/605 of 7 April 2021 laying down specific measures for the control of African swine
fever Journal L 129, 15.04.2021, p. 1, as amended).

| am convinced that the European Commission will accept Poland’s request and support

pig producers in order to enable them to continue their activities.

Yours faithfully,

For the Minister of Agriculture and Rural
Development

Besönälgäau signed electronics/