Estonian pork industry squeezed as cheap imports fill production gap
A year after a major African swine fever (ASF) outbreak, Estonia's pork industry is struggling again as cheap European imports push local prices below production costs.
Although pig farms have disinfected facilities and rebuilt production since last year's outbreak, many producers are operating at a loss, forcing some smaller farms to close.
"If we stop production and ever want to restart, this isn't a case where you can say today you will, tomorrow you won't," said Saime Agro Group CEO Valmar Haava. "Restarting [pork production] isn't cheap, and it's a very, very lengthy process."
Farmers are having little trouble selling their pork, he added, but are doing so below cost.
Some of the effects of last year's ASF outbreak are only just hitting the meat processing industry, as farms emptied during the outbreak left months-long gaps in pork supplies.
"The farms that were hit were ones whose pigs would normally have reached the market just at the beginning or during the first half of this year, which is why recovery has taken quite a while," said Nõo Meat Factory CEO Ragnar Loova.
Lower pig numbers are also hurting businesses that supply the industry, including feed producers, said Atria Farms board member Meelis Laande.
"Volumes have fallen quite low, and that in turn has meant feed producers no longer have enough work either," Laande explained, adding that those resulting rising costs ultimately show up in pork prices as well.
Price wins over preference
Domestic pork now covers about 60 percent of Estonia's consumption, down from roughly 70–80 percent last year, Laande said. That leaves the market increasingly dependent on imports.
The Ministry of Regional Affairs and Agriculture is seeking ways to ease producers' losses, while the government has already approved €14 million to help rebuild and expand domestic pork production, including sow farms.
"It's also important to continue discussions with the European Commission, because this isn't just Estonia's problem," said ministry deputy secretary general Madis Pärtel.
Despite consumers' preference for domestic pork, cheaper imported meat often wins at the grocery store.
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Editor: Johanna Alvin, Aili Vahtla
