EU-Mercosur deal threatens European egg industry

Meanwhile, Brazil is expanding its egg production capacity, aiming to ramp up exports to new markets, including Europe.

Brazil saw a breakthrough in egg industry development in 2024 and 2025, notably expanding egg production and exports to the US, taking advantage of the turmoil in that market following a bird flu epidemic, Gawrońska recently told local press.

A long-term threat

Industry analysts have long been forecasting the growth in the Brazilian egg production and processing potential. “A few years ago, I projected that the Brazilians would follow the same path with egg production as they did with broiler meat production and would want to build the same kind of power,” Gawrońska said.

Now, this scenario becomes real, heralding big problems for the European egg industry in the context of the EU-Mercosur deal, under which tariffs on Brazilian food products are due to be dramatically lowered.

“This is a major long-term threat, and I expect Brazil to be very strong in the long run,” Gawrońska noted.

Investment in logistics infrastructure

In fact, Brazil’s poultry industry has been bracing for the opening of the European market, investing heavily in logistics infrastructure.

“After Brexit, Brazilians are intensively developing exports to the UK and investing in subsidiaries in or near Europe to facilitate logistics and deliver their goods faster. This means that the agreement could further increase their presence in the region and competition in the European market in the future,” Gawrońska warned.

In general, these efforts entail some risk for Poland’s poultry and egg farmers, who are the largest exporters on the European market.

“I see this as a major challenge, because Brazilians are making a significant push into the British market, which is also our largest market. So, on the one hand, Brazil in the EU, and on the other, Brazil in the UK,” Gawrońska added.

A looming deal

As the European Commission is nearly set to sign the EU-Mercosur trade deal )5 December), farmers’ hopes to see the agreement postponed are fading.

“Unfortunately, I fear we may not be able to build the minority in EU countries necessary to block the Mercosur agreement. Italy is proving difficult to convince, and it is unlikely that this blocking minority will be built,” Gawrońska admitted.