Let us recall that financial support from Ukraine amounting to EUR 50 billion was approved in February this year. unanimously by EU countries, after Hungarian Prime Minister Viktor Orban withdrew his veto.
Money from the EU budget directed to Ukraine, intended, among others, for: for the functioning of the state are to be paid by 2027. EUR 17 billion will be a non-repayable loan, the remaining part, i.e. EUR 33 billion, Ukraine will receive in the form of cheap loans guaranteed by EU countries.
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Half of the budget for the promotion of EU agri-food products was cut
Such a large amount of aid entails the need to make savings, EUR 440 million is intended to reduce expenses in the Common Agricultural Policy, preliminary and very general cuts are to concern promotion funds or elements of administration, such as IT systems or those related to data collection.
Promotional budget halved
The European Commission announced that the budget of the annual work program for the Promotion Funds for 2025 will be EUR 92 million. This reduction by as much as half, in 2024 the budget amounts to EUR 185.9 million. Importantly, money will be able to be directed only to simple programs involving one or more organizations from one member country. However, there will no longer be support for more complex programs that involved 2 or more EU countries. There will also be no money for initiatives from the Commission, such as high-level visits that were supposed to support the reach of European agri-food products to new markets. Such missions took place, among others: in China, Argentina, Brazil, Kazakhstan.
The meat industry has been reporting for several weeks that the decision is incomprehensible and does not help build the competitiveness of both European agriculture and the meat industry. At a time when global giants such as the USA and Brazil are starting to push themselves more and more and invest more in their agro sector, Europe is starting to save on it, although it is still difficult to cope with the competition.
The government did not draw any conclusions after the farmers' protests?
According to UPEMI, the European Commission has not drawn any conclusions from the mass farmers' protests regarding the implementation of the Green Deal. European agriculture, including Polish agriculture, has been in a crisis situation for a long time. Increasing requirements regarding environmental protection and animal welfare make it less competitive on international markets. Europe is flooded with goods from third countries, including Ukraine, which do not have to meet such high standards. The final step was China's initiation of an anti-dumping procedure against pork from Europe. Meanwhile, the European Commission is reducing spending on annual work programs (AWPs) from €185 million to €92 million. Thus, the funds allocated, among others, to the promotion of European food will be reduced.
Competition from the USA, Brazil, Russia and Ukraine is growing
– Europe, including Poland, prides itself on producing food of the highest quality in the world – says Wiesław Różański, president of the management board of the Union of Producers and Employers of the Meat Industry – its promotion is one of the conditions for success on internal EU markets, but also on international markets. In the latter, Polish and European producers experience increasing competition from countries such as the USA, Brazil, Ukraine and even Russia. Promotional activities also support European agriculture in transitioning to more sustainable production methods. On the one hand, more and more is demanded from us, and on the other, the necessary financial support is limited. Meanwhile, Americans have just spent $300 million on promoting their food. So what do we do in cases like the practical Chinese embargo on European pork? How to look for new, alternative markets in other countries?
In 2024, there was a significant increase in interest in promotional programs, amounting to as much as 52%. This means that producers appreciated the support and found it effective.
A difficult game for Asian markets
Jerzy Wierzbicki, president of the management board of the Polish Meat Cattle Producers Association and Dariusz Goszczyński, president of the management board of the National Poultry Council, talk about the importance and importance of promotional programs. They both emphasize that this type of support has largely contributed to opening many attractive Asian markets for Polish beef and poultry, such as Japan, South Korea and the Philippines.
Simultaneously with the practical liquidation of promotional programs, the EC decided to reduce the budget of the Common Agricultural Policy by EUR 440 million and allocate it to support Ukraine. This decision also raises negative emotions among representatives of agricultural organizations.
– We are not against Ukraine's accession to the structures of the European Union, but it cannot be done at the expense of Polish farmers and processors who have suffered significant losses at this port resulting from the massive inflow of goods from Ukraine – argues Różański.
What will the Ministry of Agriculture and Rural Development do?
Due to the situation, organizations of producers and breeders of the meat industry: the Union of Producers and Employers of the Meat Industry, the Polish Association of Beef Cattle Producers and the National Poultry Council Chamber of Commerce, submitted a request and appeal to the Ministry of Agriculture and Rural Development to stop the actions taken by the European Commission. The information provided by UPEMI representatives shows that the Ministry of Agriculture is concerned about the situation and will take appropriate steps in the European Commission.
