Agriculture Ministry unveils restructuring plans with $1 billion price tag

The Agriculture Ministry unveiled its program for restructuring the meat-processing industry on Thursday. It includes company specialization, concentration on production, improving processing capacity, and increasing both exports and internal demand. Over a five to seven year period, exports should increase to 15%-20% of production, with over 90% of output provided by medium and large- size companies. The number of meat plants will increase by two-thirds, with three-quarters of slaughterhouses eliminated. The cost of restructuring is estimated at $1 billion and 70%-80% would be spent over the first three years. The companies themselves will cover 45% of investment needs with their own capital, with the rest provided by European Union (EU) sources and preferential loans. There are 5,000 thousand meat companies in Poland; medium and large-size firms control only 40% of slaughter and 60% of processing. Only 19 slaughterhouses and 23 processing plants have export permits for EU markets. Poland will export 10% of meat production this year. (Gazeta Wyborcza, Oct. 28-29, pp. 1, 28)