Czech Republic

Report Highlights

The lack of no negotiated FSIS/Czech Republic livestock and meat import protocols means no U.S. products reach the Czech Republic. Nevertheless, FSIS inspections and USDA authorization/approval of Czech livestock slaughterhouses ensures Czech products compete in other European markets.

Situation and Outlook

Summary: Neither a Market nor a Competitor
The Czech Republic is neither a market nor a competitor to the U.S. in livestock and meat products. The Czech Republic does not import meat or meat products from the United States because no agreement has been reached on USDA/FSIS export certificates and because of some restrictive import rules. The Czech Republic does not allow meat produced with growth promoters and is adopting EU-style laws on specified risk materials (SRMs).

Swine and pork market:

Production
As a result of higher pork prices towards the end of 2002 farmers grew more swine in the first half of 2003 which resulted in higher supply than demand. As of July 2003 prices have been stabilized and the State Agricultural and Intervention Fund does not expect to fulfil CR=s quota for export subsidies.

Export subsidy for 2003
Towards the end of 2002 the Czech government set conditions for export subsidies on swine and pork in 2003. In the first quarter of 2003 the CR exported almost 4,000 MT of live swine worth of 29 mil. CZK (Exchange rate: July 2003: 1 USD = 27.8 CZK) and almost 13,000 heads of piglets for 5 mil. CZK. In the second quarter the CR exported 20,000 heads of piglets for 8.6 mil. CZK.

According to the WTO agreement the CR may still use 28 mil. CZK for pork export subsidies in 2003 (total max. amount in 2003 is 71.7 mil. CZK). The State Agricultural and Intervention Fund (SZIF) has approved support for private warehousing of pork.

Trade
The Czech Republic exports swine and pork to former Eastern block countries, mainly to Slovakia, Romania and Hungary. Imports of swine and pork originate in the EU.

Prices
Since fall 2002 prices of slaughter pigs have been falling reaching the bottom at the beginning of the summer. This price drop is caused by higher supply than demand and farmers will have to reduce the number of their herds in order to increase prices again. For comparison, in April 2001 average price of 1kg of pork was 50.23 CZK, (Exchange rate: July 2003: 1 USD = 27.8 CZK) in April 2002 it was 41.19 CZK and in April 2003 it was 34.45 CZK.

The government increased import duty on pork in November 2002 and started subsidizing export of slaughter pigs in the first half of 2003. Swine consume one quarter of total Czech grain production.

Consumption
Since 1990 consumption of red meats (beef and pork) has been declining and red meat has been substituted by poultry (increased consumption in between 1990 and 2001 by 169 %. Poultry is believed to be healthier. As a result of the State Veterinary Administration=s constant stress on meat safety along with a change in beef production policy (increased number of suckler cows), consumption of beef has risen last year (from 169 MT in live weight in 2001 to 184.5 MT in 2002) and this trend is expected to continue (189MT in 2003 expected). Pork consumption has been constant in the past few years.

Further Information

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