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Poultry Producers Fear Trade Liberalization with Mercosur and Ukraine

FOOD & AGRICULTUREPoultry Producers Fear Trade Liberalization with Mercosur and Ukraine

The free trade agreement with Mercosur countries could pose a threat to Polish and European poultry producers, according to the National Poultry Council – Economic Chamber. Currently, 25% of chicken breast meat consumed in the EU comes from non-EU countries, estimates AVEC. An additional quota from South American countries amounting to 180,000 tons means that the total poultry meat imports to the EU would reach 1.1 million tons. EU producers are also concerned about trade relations with Ukraine.

“The agreement with Mercosur will have very serious, even devastating consequences for the Polish poultry industry. We cannot agree to a situation where we import products that do not meet the standards required of poultry meat producers within the European Union. We are not able to compete with such conditions. This will also negatively impact consumers accustomed to European standards,” stressed Dariusz GoszczyÅ„ski, President of the Board of the National Poultry Council – Economic Chamber, in an interview with Newseria agency.

The European Commission and the leaders of the four Mercosur states – Argentina, Brazil, Paraguay, and Uruguay – announced a partnership agreement on December 6, 2024. The Polish Institute of International Affairs reminds that the EC intends to process the trade part separately, meaning its adoption will require a qualified majority in the EU Council and a simple majority in the European Parliament. In the Council, this may be obstructed by states with a developed agri-food sector, including Poland, the Netherlands, and Ireland. These countries argue that their farmers could seriously suffer due to increased imports of cheaper products from South America, including meat, particularly poultry.

The agreement provides for two duty-free contingents to the EU (one for bone-in meat and another for boneless meat) with a total volume of 30,000 tons in the first year of the agreement’s effect. Gradually, over the following years, it will increase to a total of 180,000 tons in the sixth year.

“180,000 tons is the production of Finland, Denmark, and Sweden combined, so it’s a very large quota,” evaluates Dariusz GoszczyÅ„ski.

The European Association of Poultry Producers, Importers, and Exporters, AVEC, reports that already today, 25% of chicken breast meat consumed by EU consumers comes from non-EU countries (such as Brazil, Thailand, Ukraine, and China). The proposed additional quota from Mercosur means that the EU would import a total of 1.1 million tons of poultry meat, representing about 7-8% of EU production.

“On one hand, we have the Green Deal, we have the ‘From Farm to Fork’ strategy that forces our producers to meet very high standards. These standards are already the highest in the world, and further regulations are being processed, raising standards related to animal welfare or environmental impacts. By introducing an agreement with Mercosur, we do not require the same from the products that will come to us. Our producers will not be able to be competitive with such a policy,” points out the president of KRD-IG.

AVEC assesses that the agreement with Mercosur could have catastrophic effects on European food security, sustainable development, and farmers. If the EU continues to adopt stricter norms while allowing imports from countries with lower standards, it will sabotage its own producers. This agreement threatens to undermine the EU’s strategic autonomy and puts both farmers and consumers at risk. Therefore, the National Poultry Council – Economic Chamber and other poultry organizations grouped in AVEC demand that its entry into force be blocked.

“Food security is not given once and for all. We think that Europe is self-sufficient. When we introduce such unequal conditions for competition, our producers in Poland, and across the European Union, will reduce production because they will not be able to compete. Thus, we jeopardize our food security,” explains the expert.

The threat to EU poultry producers also includes the liberalization of trade with Ukraine. The ATM regulation, which limits the import of Ukrainian poultry to 137,000 tons, is only valid until June 5, 2025.

“This regulation must be quickly replaced with a new agreement. We expect that the Ukrainian side will also demand broad access to the EU market for their products, similar to products from Mercosur that do not meet all the requirements that must be met by European producers,” assesses Dariusz GoszczyÅ„ski.

He emphasizes that the Ukrainian poultry quota should be 90,000 tons, as it was until 2022. According to the expert, the quotas set in the agreements with Mercosur countries or with Ukraine should be “sensible” so as not to threaten EU producers. Especially since the choice of consumers may depend on little – buyers may often not even realize that the meat they purchase does not originate from the EU. While the origin must be indicated for fresh poultry in retail sales, there is no such obligation for processed and delivered products. Imported poultry often ends up in restaurants or as part of ready-made dishes.

“We know that Ukrainian meat goes to plants in the Netherlands, where it is repackaged and sent to other countries, so in practice, it is difficult for consumers to recognize whether it is meat produced within the European Union or outside. A lot of meat goes to the HoReCa channel, where it is also difficult for the consumer to assess the actual origin of the product. We demand that EU regulations clearly delineate, showing whether a product was produced within the European Union, or whether the meat comes from the European Union or from outside it,” emphasizes the president of KRD-IG.

Poland is the leading producer of poultry meat in the EU and the third-largest exporter in the world. In 2023, we exported 1.7 million tons of poultry meat worth over 4 billion euros.

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