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Agricultural and Food Sector in Lithuania 2013

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Agricultural and Food Sector in Lithuania 2013 LITHUANIAN INSTITUTE OF AGRARIAN ECONOMICS AGRICULTURAL AND FOOD SECTOR IN LITHUANIA 2013 VILNIUS, 2014 An analytical review of the Lithuanian agricultural and food sector over the period of 2009–2013. “Agricultural and Food Sector in Lithuania 2013” is intended for representatives of governmental and self-governing authorities, scientific research and study institutions, and all interested in the development of agricultural and food sector, fisheries and rural areas. General Editor Dr. Rasa Melnikienė Scientific Editor Dr. Nijolė Pelanienė Reviewer Prof. Dr. Neringa Stončiuvienė ABBREVIATIONS AB – Joint Stock Company AIRBC – Agricultural Information and Rural Business Centre AFMIS – Agricultural and Food Market Information System CAP – Common Agricultural Policy CN – combined nomenclature CNDP – complementary national direct payment EAGF – European Agricultural Guarantee Fund EC – European Commission EU – European Union EU-12 – Member States since 2004 and 2007 EU-15 – the old EU Member States EU-28 – all EU Member States in 2013 FADN – Farm Accountancy Data Network GDP – gross domestic product GVA – gross value added LIAE – Lithuanian Institute of Agrarian Economics LTL – Lithuanian Litas l.w. – live weight RDP – Rural Development Programme TPNS –transitional period national support UAA – utilized agricultural area VAT – value-added tax ISSN 2351-6321 (Online) Quoting requires reference to the source and website address. © Lithuanian Institute of Agrarian Economics, 2014 TABLE OF CONTENTS FOREWORD ……………………………………………………………………. 4 I. ACHIEVEMENTS OF LITHUANIAN AGRARIAN SECTOR AND KEY FACTORS INFLUENCING THEM …………...................................... 5 1. Importance of agricultural and food sector in the national economy. Rasa Melnikienė ….…………………………....................... 5 2. Gross agricultural output. Irena Kriščiukaitienė, Virginia Namiotko . 11 3. EU and national support for the development of Lithuania’s 16 agricultural and food sector. Artiom Volkov ....................................... 4. Economic entities in agriculture and food industry. Aldona Stalgienė 28 II. PRODUCTION OF AGRICULTURAL AND FOOD PRODUCTS AND SALES IN THE DOMESTIC AND FOREIGN MARKETS ………………… 40 1. Changes in trade of agricultural and food products in the domestic market. Albertas Gapšys ............................………………………….... 40 2. Foreign trade in agricultural and food products. Andrej Bogdanov, Audronė Laskauskienė …………………………………………………… 43 3. Changes in production of agricultural and food products ………… 59 3.1. Cereals. Vida Dabkienė ....…..…………………..................... 59 3.2. Milk. Deiva Mikelionytė …………………….…..................... 67 3.3. Meat. Albertas Gapšys …………………….…….................... 78 3.4. Rape. Vida Dabkienė ..…………………………………......... 86 SUMMARY …………………………………………………………………….. 90 FOREWORD The publication “Agricultural and Food Sector in Lithuania 2013” is the fifteenth edition of the annual publications by the Lithuanian Institute of Agrarian Economics (LIAE). This analytical economic survey of agriculture, processing industry and fisheries was prepared referring to the statistical information, accountability data of companies, and the findings of research conducted by the LIAE staff. The year 2013 was one of the most successful for the Lithuanian agricultural and food sector within the entire period under analysis. While in 2013, as compared to 2012, the gross domestic product created in agriculture, forestry and fisheries went up by only 1.6%, but the growth was faster than in the whole country. In 2013 the Lithuanian agricultural and food sector increased export even by 10.8%. Balance of foreign trade in agricultural and food products has been positive since 2004. In 2013 it was 2.5 times higher than in 2009 and amounted to LTL 3385 million. National agricultural development was encouraged by the European Union (EU) and national budget support. In 2013 the share of the funds in the Lithuanian budget, assigned for financing of direct and investment assistance in agriculture, intervention and other market regulation measures, amounted to LTL 3.23 billion. The publication presents changes in the indicators of the agricultural and food sector development covering the five-year period and focusing more considerable attention on the events and outcomes in 2013. With an aim of retaining the possibility for comparing the key tendencies, data in all surveys is provided following the single methodology and structure. As in any previous year, some preliminary statistical indicators for the year 2013 were used. Final economic and financial outcomes will be reflected in the later publications of the Department of Statistics and in the next-year LIAE survey. Insignificant deviations due to rounding are possible in statistical data. The publication is intended for all who are interested in the achievements and problems of the agrarian and food sector. Material provided here might be useful for agricultural specialists and scientists, farmers and entrepreneurs, teachers and students. Our sincere gratitude goes to the Heads of the Department of Statistics and the Ministry of Agriculture of the Republic of Lithuania, the Agricultural Information and Rural Business Centre and their staff members for provided statistical information and advice. Dear readers, we are kindly looking forward to your remarks and proposals. Dr. Rasa Melnikienė, Director of the Lithuanian Institute of Agrarian Economics Achievements of Lithuanian Agrarian Sector and Key Factors influencing them I. ACHIEVEMENTS OF LITHUANIAN AGRARIAN SECTOR AND KEY FACTORS INFLUENCING THEM 1. Importance of agricultural and food sector in the national economy In 2014, Lithuania has marked its EU membership decade with the growing economy and stable macroeconomic situation. Having recovered after the economic crisis, Lithuania has preserved its positions among the EU leading countries in terms of the gross domestic product (GDP) growth, which in 2009–2013 reached 119.7% at constant prices. Annual inflation in 2013 dropped to 0.4% (in 2009 reached 1.3%). Unemployment that has increased during the financial crisis period went on gradually reducing. In 2009, unemployment accounted for 13.8%, and in 2013 it dropped to 11.8%. The growth of Lithuania’s economy has been developed on the basis of export. In 2013, as compared to 2009, Lithuania’s export at current prices increased twice and reached LTL 84.8 billion. Agriculture and food industry have contributed to Lithuania’s economic development. Gross value added (GVA) in the agricultural and food, beverages and tobacco production sector. In 2009, the GVA generated in agriculture, forestry and fisheries that declined due to the reduced purchase prices for agricultural produce later was stably increasing within the entire reference period and in 2013 reached LTL 4139 million. If estimated by this indicator, the year 2013 was most successful for Lithuania’s agriculture during the entire period of its independence. Comparing, however, the results of 2013 with the year 2012 it is seen that enhancement just made 1.6%, and this indicator in 2009–2013 increased by 1.8 times (Table 1.1). The growth of the GVA created in agriculture, forestry and fisheries has outpaced the GVA growth in the entire national economy, which during the period of 2009–2013 got increased by 1.4 times. The more rapid growth rate of the GVA generated in agriculture, forestry and fisheries as compared to that in the national economy predetermined new tendencies in the economic structure of Lithuania. Since the re-establishment of independence a tendency has been observed for several years when with the rapid growth of industry and services sectors a contribution of agriculture to the GVA went on decreasing. In Lithuania, prior to 2009, a tendency of the consistently slumping input of agriculture, forestry and fisheries into the GVA generated in the country has prevailed, which underwent a change from 2009: the share of GVA created in agriculture, forestry and fisheries in 2009 accounted for 2.8%, and in 2010 – 3.3%. The increased production volumes in 2013 determined an increase in the share of the gross value added in the reference sector up to 3.8%. The GVA generated in the food production industry has increased stably within the entire reference period. The Department of Statistics does not provide the data for 2013, therefore it is possible just to estimate the period of 2009–2012 and the data of this period show the 27.4% GVA increase. This growth in 2012, as compared to 2011, reached 7.5%. 5 Achievements of Lithuanian Agrarian Sector and Key Factors influencing them The share of the GVA generated in the agriculture, forestry and fisheries in the structure of Lithuania’s economy in 2013 even by 2.5 times has exceeded the same indicator in the old Members States (EU-15) and by 2.2 times the EU-28 indicator. Lithuania was ranked seventh among 28 EU countries according to the share of the GVA created in agriculture, forestry and fisheries. The higher share of the GVA in agriculture, forestry and fisheries in 2013 belonged only to Romania (6.4%), Bulgaria and Latvia (4.9% each), Hungary (4.8%), Croatia (4.7%), and Estonia (3.9%). Table 1.1. Macroeconomic indicators of agriculture, forestry and fisheries in 2009–2013 Indicators 2009 2010 2011 2012 2013* Gross domestic product, at current prices, 92032 95676 106893 113735 119575 LTL mill. Gross value added, at current prices, LTL 82910 85914 96066 102678 107656 mill. Gross value added created in agriculture, 2318 2815 3658 4074 4139
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