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As This Year´s Priority Agricultural Businesses Consider Subsidies and Land Lease, Only One Tenth of Them Is Going To Begin Organic Production

6 March 2017, Bratislava

As key priorities for 2017 are considered, according to directors of agricultural companies, obtaining state subsidies and lease, eventually purchase of agricultural land. The less important fot them is pastures extention and a change in number of employees. Only a half of agricultural companies is going to begin an organic production. Slovak agricultural companies currently supply domestic customers by a third of their production. They would like to increase this number up to 85 percent.

This results from the Quarterly Analysis of Slovak Agriculture Q1/2017 processed by CEEC Research, the analyst firm, in cooperation with O.M.C. Invest. 

 A key priority for Slovak agricultural companies in 2017 is mainly obtaining state subsidies. Directors of agricultural companies agreed on it and rated this factor by 7.9 on a scale from zero to ten, where ten represents a top priority for this year. Other important activities are lease (7.8 points out of maximum 10) and purchase (6.6 out of maximum 10) of agricultural land. On the contrary, companies consider pastures extention and a change in number of employees  as the least important (2.8, respectively 3.4 out of maximum 10). Farmers dealing with plant production consider as a top priority agricultural land lease (8.2 points out of maximum 10) and obtaining subsidies is secondary for them (7.8 points out of maximum 10).

This year, only a tenth (12%) of directors of agricultural cooperatives and companies is going to begin an organic production and organic food production of plant or livestock origin. Companies all over agricultural sector take the same view regardless they deal with a plant or livestock production. It should be noted that some companies already produce organic products.

"We do not produce organic products because of the production character and currently it is also not possible in our conditions of mass production. However we do follow very strict legislation and we create better condiotions for animals also beyond the law. We are focusing in a quality prevention and therefore is e.g. antibiotics consumption minimum or null." says Rastislav Slocík, Chairman of the Board, Agrospol Cooperative.

"We have been a part of ecology for 10 years, we have certificates for organic production of livestock and plant production. The problem is that we can not sell organic products, but we sell for the same price as conventional products. Fattenning beef cattle is not worthwhile because prices of organic feedstuff are excessive and purchase price of slaughtered meat is low. Farmers need help from the Ministry of Agriculture and Rural Development by sales of organic production in order to be processed and placed on domestic market where it is produced. It should have the effect of production increase, employment in rural areas and the protection of public health and food production sovereignty." Zdeno Balciar, CEO, Agrokol spol. s r.o. Rimavská Baňa is describing problems of producers of organic products.

Agricultural companies currently supply Slovak customers with a third of their products (66%). However companies dealing with plant production are more successful on the domestic market. They do sell 71% of their production to local customers. In this respect, companies focusing on livestock production fall behind by 14 percent points and they do supply Slovak customers with 57 % of their production.

"Slovak traders buy a great part of our production and we do not know and can not influence where they place the goods." says Vladimír Chovan, Director General, AGROPARTNER, s. r. o. and Vice-Chairman of agri-food sector of SCCI.

"We do sell about 40%. If Slovak customers are as competitive as the foreign ones, we will sell them even 100% of production. Our interest is to supply products of high quality to Slovak customer, but unfortunately it often fails because of price." comments on Viera Glasnáková, Chief Animal Health Technician, RDP Most pri Bratislave Agricultural Cooperative.

Agricultural companies would consider as the ideal state, if Slovak customers were supplied by an average of 85% of their production. Companies supplying market with plant products would like to sell 87% to customers and companies dealing with livestock products 82% of their production.

"It should be the number of percent which would correspond to 80-85% of food sovereignty of our country." says Ing. Ladislav Dobrodenka CSc., Chairman of the Supervisory Board, SCCI.

"In my opinion, it should be 80% and Slovakia does have a potential to it, which is also historically showed." says Mário Červenka, CEO, O.M.C Invest.

The Quarterly Analysis of Slovak Agriculture Q1/2017 will be published on 14 March at the LEADERS OF SLOVAK AGRICULTURE MEETING 2017 in Bratislava.


Media contact:

Ing. Jiří Vacek, Ph.D., MIM
Riaditeľ spoločnosti
CEEC Research s.r.o.
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Tel.: +420 774 325 111

CEEC Research is the leading analyst and research company focusing on the development of selected segments of economy in the countries of Central and Eastern Europe. Our current studies are used by over 17.000 companies around the world. CEEC Research was established in 2005 as the analyst organisation specialised in research processing and building sector analysis, after that the analytic coverage has extended to other selected sectors of economy, including the engineering.

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