The Dutch poultry sector is sounding the alarm. The trigger is a report by Wageningen Economic Research outlining the consequences of the EU-Mercosur trade agreement. Imports of low-cost poultry meat from South America are expected to rise by 69%, adding €137 million in import value. At the same time, the value of domestic production is projected to fall by €119 million. That blow is largely due to a shift in production to lower-cost countries, according to NEPLUVI, LTO/NOP, NVP, COBK and ANEVEI.
While imported meat remains cheap due to looser animal welfare and environmental regulations, Dutch producers are being asked to meet stricter standards. New legislation, stemming from the Van Campen and De Groot amendment, demands a further shift towards more animal-friendly farming. “The researchers fail to account for the structurally higher costs,” the sector organisations state. As a result, expecting Dutch companies to compensate through additional exports within Europe is unrealistic.
The economic benefits of the trade agreement are limited. According to the report, the Dutch GDP is set to increase by just 0.02% by 2040. “The poultry sector risks becoming a bargaining chip for an economic outcome of negligible significance,” the organisations warn. They are calling on the Dutch government to take a stand against the agreement. “It would be incomprehensible to open the gates to imports produced under lower standards, while Dutch farmers are burdened with rising costs.”
Source: Nepluvi