At the beginning of the year, European poultry factories began to complain about market distortion due to the influx of products from Ukraine. Reacting to protests from farmers, the European Commission decided to return quotas on Ukrainian eggs and sugar. They were canceled in 2022 to support Ukrainian producers. However, Latvian poultry factories believe that quotas alone are not enough for fair competition in the market. From July 2, the EU returned quotas for the import of eggs and sugar from Ukraine, provided that the volume of imports of these products reaches the annual average for the period from July 1, 2021 to July 31 December 2023. For eggs and sugar, the average is 23,188.96 tons and 262,652.68 tons, respectively. Imports of eggs and sugar from Ukraine in 2024 have already exceeded these volumes. This means that any additional imports in the future will be subject to higher duties. In turn, from January 1, 2025 to June 5, 2025, a new tariff quota will be introduced. It is set at 9,662.07 tons for eggs and 109,438.62 tons for sugar. However, Latvian farmers are not completely satisfied with the EC's decision. “This is the minimum program that Europe could do to protect the industry from elements of unfair competition,” Toms Aushkaps, director of communications and development for the largest egg producer in Latvia, AS Balticovo, said in a conversation with Delfi Bizness. Latvian egg producers indicate that the EC decision will have little impact on the local market – when adding import tariffs (30 euro cents per 1 kg of Ukrainian eggs), sales prices will still be lower than the cost of production of producers in EU member countries. “You cannot flood the EU internal market with products that do not meet European standards, which are half the price, and hope that symbolic tariffs will radically change the situation,” comments Chairman of the Board of AS APF Holdings Yuri Adamovich. According to Aushkaps, the new quotas mean an increase in the price of one Ukrainian egg by one and a half eurocents. Auschkaps also points out that Europe has very strict requirements for the production and maintenance of animals, which can ultimately be expressed in monetary terms. “The paradox is that when importing eggs from third countries outside the EU, farmers are suddenly given discounts on quality requirements and animal welfare regulations,” says Aushkaps, adding that this puts Balticovo at a disadvantage. Moreover, the EU has neither the ability nor the right to check whether manufacturers outside Europe comply with these requirements. The entrepreneur also draws attention to the time period chosen to determine the average annual volume of imports, since the surge in imports began in 2022, when restrictions were lifted with the outbreak of war. “And of all the EU countries, the Baltic countries receive the majority of Ukrainian egg imports – about 30% – because we are more sensitive to prices and less nationally patriotic in choosing products,” says Aushkaps. “We only want the conditions of competition to be equal and fair,” says Jānis Gaigals, chairman of the board of the Latvian Poultry Industry Association. According to the Association, it is necessary to establish a level of import duties that would not allow distortion of market conditions in Europe, in turn, the revenues received should be redirected to support Ukraine. The industry approached the deputies of the previous convocation of the European Parliament with such a proposal, but did not receive support. “None of the former MEPs could answer what economic benefit in monetary terms Ukraine receives from these EP decisions,” says Gaigals. The Association will inform the newly elected MEPs about the current situation. “If we are talking about any kind of support for Ukraine, then this needs to be done in solidarity, and not at the expense of the Latvian industry, which interferes with its work and development, and also brings losses to the Latvian budget,” says Gaigals. THE AUTHORS ARE RESPONSIBLE FOR THE CONTENT OF THE PUBLICATION. THE EUROPEAN UNION DOES NOT CONTROL THE CONTENT OF PUBLICATIONS OR THEIR FURTHER USE.
