EU–Mercosur Agreement Hits Polish Poultry Profits

Poland’s poultry sector is bracing for severe economic consequences as the EU‑Mercosur trade agreement is expected to cut farmers’ net profits by half in the coming years. According to analysis reported by Poultry World, average profits are projected to fall from PLN 0.52 (€0.12) per kilogram to just PLN 0.26 (€0.06), effectively halving industry profitability nationwide.

David Corredor

Poland’s poultry sector is bracing for severe economic consequences as the EU‑Mercosur trade agreement is expected to cut farmers’ net profits by half in the coming years. According to analysis reported by Poultry World, average profits are projected to fall from PLN 0.52 (€0.12) per kilogram to just PLN 0.26 (€0.06), effectively halving industry profitability nationwide.

Large farms could face annual losses of roughly PLN 130,000 (€31,000) under the new trade conditions, and many mid‑sized poultry operations—particularly those farming 10–50 hectares—may see income drop between 20% and 40% by 2030, triggering widespread consolidation and disappearance of medium-scale producers.

Market Pressure from Latin American Imports

• The core concern among Polish producers stems from expected increases in poultry imports from Mercosur countries such as Brazil and Argentina.
• Poland’s agriculture ministry has expressed “serious reservations,” warning that the agreement threatens to overwhelm domestic producers.
• The deal envisions allowing 180,000 tonnes of poultry into the EU market within six years—equivalent to 1.4% of EU annual production—raising fears of price pressure and competitive imbalance.
• Although a safeguard mechanism is included to counter market disruption, Polish officials argue it is “ill‑suited” to respond effectively to sudden agricultural shocks.

Broader Agricultural Sector at Risk