Summer drought won't leave meat industry untouched, says plant director ({{commentsTotal}})

Pigs at a pig farm.
Pigs at a pig farm. Source: Postimees/Scanpi

This summer with its ongoing drought conditions is threatening domestic meat producers with large losses, Atria Eesti board chairman Olle Horm said in an interview with daily Eesti Päevaleht (EPL).

"The crop harvest is especially lousy due to the hot, dry summer," Horm said. "Up to 60% of the production cost of pork is made up of the cost of feed, which is primarily grains. Our production costs will in all likelihood increase considerably."

He explained that throughout Europe, pork continues to be significantly overproduced, and that surplus pork has thus far gone to Asia, with China regulating the market price in Europe.

"China has been a poor importer lately, as their own domestic production has increased," Horm said. "Pork prices in Europe are on a downward trend. There is a threat of a situation arising in which production costs see a sharp increase but sale prices don't."

Statistically, Estonians' preference for domestic meat is one of the highest in Europe at 80%.

"But many of those who say they prefer domestic products are in reality loyal to yellow sales tags, i.e. lower prices," he noted. "It's difficult to judge whether meat is Estonian or not. This is easiest with fresh meat. What is the source of the meat found in sausages and hot dogs, however, is difficult to determine."

Editor: Aili Vahtla



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