Import pork is massively imported into Latvia using value-added tax schemes


In all EU countries, pig breeding is in a difficult situation. Grain prices went up by 33%, the costs of which make up to 70% of the costs of pig farms for the purchase of feed, but the purchase prices for pork have decreased, creating dissonance with production costs. Therefore, the industry is working in the minus.

Statistics show that there is something wrong with Latvian pig production, the newspaper writes. Local pig producers provide only 57-60% of the demand for pork in Latvia. Pig breeders inform the industry association that Latvian meat producers are not eager to buy local pork. “One or the other says clearly: I don’t need your pigs if I can buy Belgian, Polish or German pork at a lower price. This confirms the massive import of imported pork into the country. The question arises how this is possible if the purchase prices for pork are about the same in all of Europe. Where does the cost of slaughter and transport go, and how can Latvia bring cheaper meat compared to that produced in the country? The answer is obvious: the VAT schemes are to blame. This is confirmed by the association, “the newspaper reports .

“We think that the VAT carousel works in very large sizes. In addition, we cannot talk about the same rules of the game in the single meat market in the European Union, since we are among the five unfortunate countries, where there is a high VAT rate on meat – 21%. How can we compete with Belgian, Polish and German manufacturers? It is nonsense that everything is in order, because the VAT is zero for cross-border transactions. Very many companies know how to use it in order to consistently earn 21%, “notes the head of the Latvian Pig Production Association Dzintra Leiniece.