As conversations around the EU-Mercosur deal intensify, there has been considerable focus on the implications for the European broiler meat industry. However, the potential impacts on the egg sector remain largely overlooked. Katarzyna Gawrońska, president of the National Chamber of Poultry and Feed Producers, has flagged this as a critical issue as Brazil significantly expands its egg production capacity and aims for new export markets, including Europe.
A Long-Term Threat
Industry analysts have long predicted the rise of Brazil as a powerhouse in the egg production sector. “Years ago, I anticipated that Brazil would mirror its trajectory in broiler meat with egg production, aiming to exert similar influence,” Gawrońska recently stated. This projection is now materializing, indicating substantial challenges for the European egg industry amid the EU-Mercosur agreement, which plans to drastically reduce tariffs on Brazilian food products.
“This transformation presents a significant long-term threat, and I believe Brazil will emerge as a formidable competitor over time,” Gawrońska commented.
Investment in Logistics Infrastructure
In preparation for the anticipated opening of the European market, Brazil has invested heavily in logistics infrastructure related to its poultry industry. “Post-Brexit, Brazilian producers are actively engaging in export initiatives tied to the UK, establishing subsidiaries within or close to Europe to enhance logistics and expedite product delivery,” Gawrońska warned. Such actions could bolster Brazil’s market presence and amplify competition within the European market.
This ongoing development is particularly concerning for Poland’s poultry and egg farmers, who have historically been the largest exporters on the European landscape. “I regard this as a significant challenge; Brazil’s push for the British market will affect our primary export destination,” asserted Gawrońska.
A Looming Deal
With the European Commission poised to finalize the EU-Mercosur trade deal on December 5, the possibilities for farmers to delay the agreement appear increasingly slim. “Regrettably, I fear we may lack the necessary coalition within EU countries to obstruct the Mercosur agreement. Convincing nations like Italy has proven to be difficult, and it is improbable that such a blocking minority will materialize,” Gawrońska lamented.
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