Czech agriculture to post best results since 1989
The Czech agricultural sector should post a profit of around Kc4 billion ($176 million) this year, according to preliminary estimates of the Czech Agriculture Ministry, the best results since 1989. Miroslav Jirovsky, chairman of the Czech Agricultural Association added that the profit could top Kc3bn ($132 million).
Jaroslav Palas, the Agriculture Minister, said sector’s strong performance is due to a considerable increase in plant production and an approximate 10% rise in farmers’ prices compared to the previous year. This year's grain harvest of 8.83 million tons was the highest since 1990.
According to Mr Palas, the accession to the European Union contributed to profitability by bringing subsidies, among other benefits. Farmers are expected to receive some Kc22bn ($969 million) in subsidies this year and enjoy a much wider range of support programmes than before. Better protection against market fluctuations and competition from non-EU countries is now in place and the country operates in a pan-European market. On the other hand, farmers face tougher competition and have to deal with more paperwork following EU entry. They also face a lack of cash and cheap fruit and vegetable imports from neighbouring
The sector has incurred huge losses over the past decade, estimated at Kc1.26bn ($56 million) last year, except for 2000 and 2001 when drought compensation money was paid out to farmers.
