The Greek market chain of animal feed faces serious problems after the bank holiday

greek milk production can't benefit from EU price rise

The Greek farming enterprises face major problems, as capital control has prevented the import of animal feed. “The capital control stifles the Greek economy and is expected to bring the final blow to Greek livestock, which faces many difficulties all the years of financial crisis. The trade of animal feed between the productive units and the market has essentially stopped or will stop in due course, while the cost for island regions is very high” said to Agrotypos the President of the Hellenic Feed Industry Association Mr. Ilias Melissourgos.

Is there a risk of shortage in the animal feed market?

The lack of animal feed is now a real danger. There is no trader who could predict the market situation till the end of the week, since the demand is very volatile. Already there is a shortage of animal feed containing raw material such as soybean and corn, which are imported. But there is also problem with the grain. The trade of cereals that are being harvested at this period (wheat, barley, etc.) is very difficult, because the farmers have not yet covered the previous year’s production cost.

Which are the sectors of livestock with the major problem?

Breeding animals kept in stables (poultry, pig and cattle) face major problem. We are talking about farmers who could not afford to move their animals in order to graze in the hills and the mountains. The Cretan livestock also faces serious problems. Especially the farming of rabbits, chickens and pigs, faces shortage of animal feed. It is known that the 56% of the Greek farmers income comes from the EU grants. Also the investments in rural areas are subsidized by 70%. Therefore a “Grexit” will lead the sector and the country to a disaster.

At this period, is there any animal feed stock?

There is a few stock because at the time that the “capital control” did happen we were harvesting the grains and at meantime the mills have no stock. This means that the animal feed sufficiency is reduced. Only few companies in Northern Greece which produce animal feed and have access to raw materials (cereals) can operate. These amounts however are very limited and due to the increase demand (because of the problems in imports), they will end soon. Moreover the Greek islands are facing a huge problem with the animal feed stock.

Have you come in contact with the government about the problems in imports?

On Wednesday (July 8th) we had a meeting at the the “General Secretary of Commerce”, where we mentioned the arisen problem with the Approval Committee Banking General Accounting Office, which is the competent authority giving approvals for remittances abroad in order to import products. But all these days this particular Commission is not working properly.

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