Slovene pig breeding and European Union

Economic situation of pig production in Slovenia and EU was compared in this study. In doing that, a special emphasis was given on the comparison of the existing market price and intervention policies (i.e. pig prices, prices of feedstuffs for hogs during the period between 1992 and 1995). A designed agricultural policy framework in Slovene pig production markedly differs from that of EU. The biggest discrepancies are arising in the case of the restored foreign-trade mechanisms (lower protection levels in Slovenia), in the prevailing domestic market regulations (no state intervention in pig market), and finally in the extent of direct financial support (considerable funds allocated to pig producers, which is in contrast with the governing CAP principles). During the period between 1992 and 1995, similar trends in both producer prices of hogs and prices of feedstuffs in Slovenia and EU can be observed. Pig prices were higher in Slovenia than even in those EU countries with the highest price levels, whereas the prices of feedstuffs lagged behind the corresponding EU price levels (e.g. the exception being soy-bean meal). If the current agricultural policy, which ensures relatively high economic efficiency levels to farmers engaged in very intensive production, was maintained in Slovene pig production, the effect of an eventual accession into EU would mainly be reflected in lower farm incomes earned (decline in hog prices, abolishment of most of the budget intervention funds, probable rise in production costs). This negative impact could be mitigated through encouraging competitiveness of domestic pig farmers, which may in turn only be achieved with the necessary restructuring of the production potential - increase the volume of production coupled with higher concentration levels on Slovene private hog farms and with the efforts to reduce production costs in pig farming.