Pork demand outstrips supply

The single market created by the European Union has brought untold advantages for many Czech exporters, allowing products to move more freely across borders. But the country is now importing more meat and produce than ever before, pushing many Czech farmers - and especially pig farmers - into a struggle for their livelihood.

Supporting livestock farmers and raising the number of domestic farm animals is one of the most pressing issues facing the struggling Czech agriculture industry, according to "Vision of Czech Agriculture After 2010," a report released by the Agriculture Ministry May 26.

The report, which is directed at "everyone who cares about the future of the Czech agro-food complex," according to Agriculture Minister Jakub Šebesta, presents some alarming figures, including the fact that there are currently only 2 million pigs in the Czech Republic, the lowest number since World War II.

"After EU accession, pork production fell dramatically. Between 2004 and 2008, the decrease was about 21 percent, and in 2009 we saw a further drop of 14.2 percent, and the number of pigs fell 1.2 million," said Dita Vrbová, spokeswoman for the Agriculture Ministry.

The falling number of domestic pigs has significant effects on farmers and the greater economy, as markets and butchers are now forced to import an increasing amount of pork - a favorite ingredient in many Czech recipes.

According to Jan Veleba, chairman of the Agrarian Chamber, the Czech Republic was last self-sufficient with pork in 2003, when the country produced 580,000 tons.

"In other words, while the old EU farmers produce fully, Czech farmers are doomed to a gradual decline. It's a concrete result of uneven conditions in the name of 'common' agriculture policy," Veleba said.

Vrbová was also vocal about the disadvantages Czech farmers face in the EU, saying "Czech farmers only receive 70 percent of direct EU payments, and the national budget cannot provide the other 30 percent," putting Czech farmers at a disadvantage to their EU counterparts.

The decline in pork production has a trickledown effect on the agriculture industry, especially for feed producers, who now have fewer customers among pig and livestock farmers.

"The main effect, besides an increase in meat imports, is a falling demand for grain, which are used for feeding the pig herds. Unused quantities of wheat and barley increase the grain surplus on the Czech market which, again, causes the grain prices go down," Vrbová said.

Most domestic pig farmers do not own the land their livestock grazes on and are thus ineligible for most government subsidies. At the same time, such farmers have to purchase all feed, rather than produce it themselves, putting these farmers in difficult circumstances, according to the Agriculture Ministry.

Overall, the ministry's report remains optimistic, calling for significant changes to the industry, and especially to pig farming, while remaining seemingly confident that such changes will be made, and that they will be effective. The report suggests joining farmers in associations, increasing production and minimizing costs to boost the welfare of farmers.

Not all representatives of the agricultural industry are confident that such sweeping measures will be put into practice anytime soon, however.

Veleba called the state of Czech agriculture "serious," adding that "politicians must stand up for domestic agriculture and clearly communicate their support and interest to have domestic produce. If the politicians do it, the Czech people will catch on to it and prefer Czech products."

"The sector was badly hit by the economic crisis, and last year's decline in sales in agriculture reached 25 percent. Production declined yearly 19 percent. Farmers, therefore, are entering this year without any reserves, with a lack of resources to finance their production," he said.

All Czech farmers, not just pig farmers, are struggling to survive, and according to a report from the European Commission, employment in EU agriculture fell 25 percent between 2000 and 2009. Dairy farming and dairy subsidies have been the most contentious aspects of Czech and European agriculture over the past years, reaching fever pitch in autumn 2009 as farmers throughout Europe dumped millions of gallons of milk in protest of a lack of subsidies.

Asked whether increased subsidies make farmers more dependent on government aid, Veleba was clear.

"It is about survival, not about philosophical notions of freedom," he said.

- Filip Šenk contributed to this report.