OLD-SLAVONIC EMPIRE - INFOMA

50
Slovak Agricultural
and Food Chamber
Záhradnícka, 21
SK-811 07 Bratislava 1
tel.: +421-2-5557 1003
fax: +421-2-5556 4800
e-mail: sppk@sppk.sk
http://www.sppk.sk
ADRESS BY THE PRESIDENT OF SAFC
PRÍHOVOR PREZIDENTA SPPK
Agri-food complex - and particularly within
the agricultural primary production - fi nds
itself in a particularly diffi cult situation. They
have lost a balanced relationship between
crop and animal production, there has been a
collapse of sales prices of most commodities
and agrarian core of existential threat to the
very business of land. People in agriculture,
including many executives are beginning to
settle deep skepticism in our industry do not
see any perspective. It is high time to stop the
decline of agricultural sector and start saving.
Essentially, we can say that our industry will be
to try to save everything that can still save.
There has problems almost all primary
agricultural production, because it fails to
adequately monetize their productions. In recent
years, largely avoiding the accumulation of a
price decline of most agrarian commodities
than now. Although the dynamics of price
trends for agricultural products in total almost
always fall short of growth in input prices,
appropriate restructuring of production and
distribution business risk, these impacts can
be mitigated at least partially. But now farmers
do not have any “strong” commodity, for
which they could be relied upon to stabilize its
economy. Nothing to alter or slow the increase
in purchase prices of raw cow’s milk, which
recently started there. Their level is still not
cover production costs only alleviates previous
significant losses. Farmers expect better
monetization of food grain and corn. Similarly,
sales of feed grain to deliver the expected
eff ects, although demand in the marketplace
begins with a slightly refreshed. Neither the
sale of slaughter pigs, cattle or poultry farmers
are not cheering. Such an unfavorable situation
in almost all commodities at the same time
there has been a long time. We consider it our
duty to warn, because many companies can
bring to the current trend collapse.
The solutions are clear. Our Chamber of them
in a concise form the government raise already
in April 2009. It is the utmost to mobilize all
domestic resources and support to accelerate
the fl ow of the primary agricultural production.
We believe, however, that should wake up and
Brussels, from which we expect more fl exible
approaches to the preparation and running of
the intervention system and other measures to
eliminate the negative eff ects of natural market
fl uctuations. Our analysis shows that, the annual
production of commodities with signifi cant
turbulence, in excess of 30% and between
10-20% in comparison with long-term averages.
Also it is necessary to revise the instruments of
the Common Agricultural Policy, which in its
current form fails to promote sustainable
agricultural development. Fluctuations
in revenue particularly in enterprises that
operate in a weaker economic environment,
which includes Slovakia, limiting the eff ective
use of aid and mouth to reduce the creation
of added value. The resulting system solution
should maintain the utmost discretion market
producers, consumers and storage agents, as
are markets and reasonable standard. Interests
of individual countries and across the EU would
be the economic framework of the commodities
markets were stable and not turbulent. Public
resources and activities should be given to
the word only if producers can not realize
their goods during a period of a reasonable
value added, namely those periods in which
we currently fi nd themselves. Thought to be
off setting the negative impact of severe price
fl uctuations on producers. In the world there
are already some systems, therefore we can not
remain inactive.
The biggest problem is the biological nature
of agricultural production and its substantial
dependence on weather and wind conditions.
As climate change makes natural eff ects of
growing less predictable, inherent volatility of
agrarian markets will increase further. We believe
that it must comply with new approaches to
managing risks in agricultural production,
which will always rotate more productive years
to less fertile and should be in the interests of
each company to know not only eliminate their
impact on producers but also consumers.
Regarding the EU, we are not satisfi ed with
more concrete actions and proposals by the
European Commission wants to apply the
EU common agricultural policy. A concrete
example is the reform of the sugar and milk
are not delivering the expected eff ects and
lead only to reduce production in the new
member countries. Similarly, it is set in the
reform of the wine market, which in turn limit
its production in those countries that are the
source of overproduction. We believe that
the Commission should change the overall
philosophy of its approach to agricultural policy
and the move from the current defensive when
trying to solve every problem in principle only
by limiting production to more aggressive
penetrations to third markets. Instead of
abatement programs, in our view, should
encourage reduction of production costs
and increasing competitiveness of European
productions worldwide. That is it, what we
and our members in positions of Brussels very
lacking.
Ing. Milan SEMANČÍK
President of the Slovak Agricultural and Food
Chamber