Pig production in Slovakia insufficient to cover local demand

Shortage of local pig production in Slovakia offers enormous potential for new investors

In this blog I will highlight the enormous potential that Slovakia offers for (new) pig producing companies. A potential now known by many in Europe.

For many agricultural products, Slovakia is not self-sufficient in its production to cover local demand. This applies especially to pig production. Local production only counts for less than 50% of local demand. The rest is imported (see also graph below). A large part of imports are piglets for fattening that are then also used for export. That is the reason why exports strongly increased since 2009. Slovakia’s location, close to export markets like Hungary, Austria and Germany and its excellent infrastructure makes the country well positioned for export.

This lack of production leads to prices that are on average higher than in most EU countries. A lack of knowledge on how to efficiently produce pigs and a lack of own financing are the main reasons local producers have giving up on pig production in the last 10 years. For some part, foreign investors (especially Danish producers) have filled this gap. Notwithstanding their efficient and large scale production, local demand is still more than double Slovakia’s production.

development-pig-production-slovakia

Source: ZCHOS-D

The Slovak government has also acknowledged the necessity to be more self-sufficient in food production and further supports pig producers by increasing subsidies for mother sows and fattening pigs. Also, subsidies are available for renovation or new construction of facilities and technology.

This unique situation in Slovakia offers enormous possibilities for foreign investors that have experience with growing pigs on a larger scale. Regulations and restrictions for pig production are according EU standards, but easier to deal with than in many other EU countries. Also the availability of abandoned farms enables a relative fast start of operations by renovating old building or constructing new ones. Our experience in advising and supporting foreign farmers in Slovakia also learns that especially in areas with higher unemployment the municipalities are often very cooperative in reviving or starting pig growing farms together with foreign investors.

development-pig-prices-slovakia

For more information on this topic and our support in realising your investment in Slovakia please do not hesitate to contact us.

www.propertyslovakia.com