We are losing our savings due to high inflation and high prices. Many companies and institutions are on the verge of bankruptcy. The biggest burden for them is high energy prices, including gas. Dairy cooperatives, barely making ends meet, are crying out for help.
The district dairy cooperative Czarnków is on the verge of bankruptcy. The dramatic situation of the milkers is caused by the huge rise in gas prices.
Milk gas prices have risen by almost nine times
“In the last year alone, the prices for blue commodities at OSM Czarnków have risen by more than 880 percent.” - reports the weekly “Poradnik Rolnichi”. According to the newspaper, the high cost of commissions slows down the day-to-day operations of the dairy and eats into the profit it generates. Several other dairy cooperatives are in a similarly dramatic situation.
According to the dairymen, OSM Czarnków may cease to function in a few months. Many farmers from nearby villages are also afraid of such a decision. Almost four hundred of them deliver milk to this cooperative every day.
Workers from Czarnków asked politicians for ideas for survival
Representatives of the dairy in Czarnkov are looking for any way to change the fate of the cooperative. The workers turned to opposition politicians for help. “We are closing the company. What is the way out now?” - this is one of the many questions that were asked at a meeting with deputies from the Civic Coalition. The closure of the dairy business would be a huge problem for the entire region. The cooperative employs almost 200 people in two branches.
OSM Czarnków also turned to Jacek Sasin, Deputy Prime Minister and Minister of State Assets, for help. The letter sent by the management of the dairy plant indicates that in 2022 the cooperatives paid PLN 3.4 million for gas, which is almost 2 percent. share of fixed costs.
Dairy industry announces system solution
Meanwhile, forecasts for 2023 show that with a similar gas consumption, the blue fuel bill will amount to PLN 30.26 million this year. “This is an increase of almost PLN 27 million and 880 percent!” dairy representatives say. The share in total costs also changed significantly. It will increase more than seven times to 14 percent. during a year.
Cooperatives present their idea of a way out of financial difficulties. According to Zofia Just, Vice President of OSM Czarnków, a systemic solution that could help the entire industry is the inclusion of milk and cheese processors in the law on special protection of gaseous fuel consumers in 2023. The idea has already been put forward both in the Seimas and in the Senate, but has not received the approval of the majority of parliamentarians.
The dairy plant in Czarnkov is one of the many dairy plants in financial difficulties. Problems are reported not only by factories in Wielkopolska, but also in other regions of the country. Most of them recorded an average three-fold increase in energy prices, including gas. As a result, they argue, they cannot be competitive in the market.
Source: Wprost
I am George Brown, author at Daily News Hack. I mostly cover economy news and I have been doing this for quite some time now. I have a lot of experience in this field and I’m always looking for new opportunities to learn more.
