CZECH AGRICULTURE IS CHANGING MANUFACTURE OF FOOD PRODUCTS BIO FOOD IN THE CZECH REPUBLIC IS ON THE RISE
AGRICULTURAL AND FOOD INDUSTRY 1 2020
CZECH BUSINESS AND TRADE
MLÝN HERBER
INNOVATION AND TRADITION
EXAMPLES
of merchandise using the micron mill products
Czech Business and Trade – With a Tradition of 90 Years Economic Magazine is Designed for Foreign Partners, Interested in Cooperation with the Czech Republic
# pastry of fine wholemeal flour
PARTNER OF THE MAGAZINE: National Committee of the International Chamber of Commerce in CR
n ANALYSIS
Czech Agriculture Is Changing 5 From Crop Area Decrease to the Largest Agricultural Enterprises in the EU and to Ecofarms 8 Manufacture of Food Products 12
# vegetarian burgers from legumes and vegetable proteins
MANAGING EDITOR: Pavla Podskalská
The history of the mill goes back to the year 1362. Since 1876, the mill has been owned by the Herber family and it has been a family business to this day. The company is pursuing two different methods of production. In Opava, the Palhanec district, the mill, fitted with the most up-to-date equipment, specialises in the production of wheat flour for the most exacting users as regards its quality parameters, supplied in large volumes. In Holasovice, flour is made in the traditional way, in small batches for craft bakeries and other special facilities, and also for homemade bread baking.
# thickening of milk products with wheat fibre
n TRENDS
Bio Food in the Czech Republic is on the Rise Environmentally Friendly Vineyard Management in the Czech Republic Wine Tourism
18 26 28
EDITOR: Marie Ciganeková
TRANSLATION: Vlasta Benešová
n RESEARCH AND DEVELOPMENT
Agriculture - an Opportunity for Innovation
20
# nutrition of young cattle enriched with proteins
PROOFREADING: Ivana Kadlecová, Pearl Harris
n VITICULTURE # disposable tableware of fibre and starch
# thread and textile products
We have built a new production line for micron grain milling. « This line processes a wide range of grains and groats (cereals, legumes, soya groats, etc.) into very fine flours and intermediates, also for industries other than the food sector. These flours can be used as a replacement of starches and under certain conditions they can become non-sedimenting and can create various suspensions and solutions (for example, for the enrichment of milk powder with quality soya proteins used in young cattle feeding). In the food sector, micron flour can be used in products, such as vegetarian burgers and sausages from legume flour and vegetable protein, and in milk products for improving their nutritional value by adding roughage as thickener.
Vineyard Areas in the Czech Republic are Increasing, with PIWI Varieties Following this Trend 24 GRAPHIC DESIGN: Stanislava Podaná
COVER PHOTO: pixabay.com
DEADLINE: 31. 3. 2020 © PP Agency
n BREWING
Czech “Green Gold“ Czechs Love Beer and They Like Brewing It in Bulk Czech Women Are Beer Lovers World Beer Premiere – or “Cheers to you!” The Czech Food Chamber
30 32 35 36 37
# paper and packing products
# thermo insulation cotton wool
# plasterboard and other building materials
# glass and ceramic products
www.mlynherber.cz
ADDRESS: Myslíkova 25, 110 00 Praha 1 Czech Republic e-mail: journal@ppagency.cz www.ppagency.cz, www.doingbusiness.cz
Press run: 10 000 copies. It is not allowed to reproduce any part of the contents of this journal without prior consent from the Editor. Attitudes expressed by the authors of articles carried by CBT need not necessarily be consistent with the standpoint of the Publisher. MK ČR E 6379, ISSN 1211-2208 „Podávání novinových zásilek povoleno Českou poštou, s. p., odštěpný závod Přeprava, č. j. 3468/95, ze dne 24/10/1995“
n PR
Agriculture as a Pillar of Sustainable Development Czech Vegetable Seed Is Heading all over the World Radlík Distillery Scores Success in the Market Family Company Pleva Potštejn Bohemiachlad, Spol. s r.o., Means Industrial Cooling
11 17 23 29 34
n PRESENTATION OF FIRMS
AGROCHEMA, družstvo; APROS Group, s.r.o.; BOHEMIACHLAD spol. s r.o.; COMAGRIN, a.s.; GEOtest, a.s.; ICC; Irena Stromská - Pálenice Zubří; KOVOBEL, výrobní družstvo; NEREZ Blučina, s.r.o.; OXALIS, spol. s r.o.; Pleva s.r.o.; SEMO a.s.; UNICOM servis, spol. s r.o.; Works L & W group s.r.o. The publisher is not responsible for the content of paid presentations
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INTRODUCTION
CZECH BUSINESS AND TRADE
Czech Agriculture Is Changing Within the Czech economy, agriculture has traditionally been an important sector, although its share of GDP or production and gross value added is very low, as in all industrialised countries. In the past decades, this sector has radically changed in connection with its privatisation after 1989.
The current total land surface area in the Czech Republic is 7 887 027 hectares and the agricultural land surface area, i.e. land used for agricultural purposes, meaning work on arable land, in orchards, hop fields, vineyards and on permanent grassland, is 4 205 288 ha (approx. 53 per cent). Arable land accounts for 37.5 per cent of the total land surface area, i.e. 2 958 603 ha; most of the arable land (54 per cent) is of average fertility and 40 per cent of above-average fertility. The surface area of hop fields is 10 066 ha, of vineyards 20 008 ha, gardens 164 815 ha, orchards 45 245 ha, and permanent grassland (meadows and pastureland) 1 006 552 ha. About 3 700 000 hectares of the agricultural land surface area in the Czech Republic is in private hands, with only 20 000 ha being owned by the state.
n CROP PRODUCTION
Photo: pixabay.com
IS DOMINATED BY CEREALS
| 4
Most of the crops grown in the Czech Republic are used for the production of food, feed and raw materials, mainly for the food and pharmaceutical industries. The most important group of crops is cereals, which are grown on more than one-half of the sowing area. In the early 1920s, the dominant cereal crop was rye, followed by barley. The surface area sown with wheat was about one-half of that sown with rye. In the early1950s, the sowing areas of these two cereal crops became equal.
Since then, the moderate decline in the size of areas sown with rye has continued, while the surfaces sown with wheat have grown rapidly, up to 850 000 ha in the mid1970s and 950 000 ha in the year 2000. The 5.21 t yield per hectare of cereal crops in 2018 was 0.30 t (5.4 per cent) lower in comparison with the preceding year, of which the yield in winter wheat was 5.46 t (5.77 t in 2017), in spring wheat 4.14 t (4.05 t), rye 4.74 t (4.92 t), winter barley 4.98 t (5.85 t), spring barley 4.93 t (4.96 t), oats 3.56 t (3.23 t) and corn 5.98 t (6.84 t).
n RAPE SUBSIDIES In 2018, the surface area sown with oleaginous seeds increased by 9.8 thous. ha (by 2.0 per cent), to 489.3 thous. ha. Total production amounting to 1 511.3 thous. t. was 241.9 thous. t higher than in 2017. The rape harvest showed a dynamic growth in the period after WWII. Rape only began to be grown in the 1970s, when its production amounted to some 40 000 ha. In the 1990s, the area increased to about 100 000 ha in connection with the production of oil for the food industry. Another essential change occurred in the 1990s, when the methyl ester made from rape began to be used as diesel additive or even as biodiesel. Extensive subsidies in the form of advantageous purchase prices led to the massive extension of rapeseed areas to the current level of last year´s 412 000 ha. The 2018
rape harvest was 1 410.8 thous. tonnes (23 per cent more than in the preceding year). On the other hand, poppy seed production was much lower in that year, when 13.7 thous. tonnes were harvested from a total surface area of 26.6 thous. ha, 32 per cent less than one year before.
n POTATO PRODUCTION
IS FALLING RAPIDLY
Before WWII, potatoes were grown on an area of about half a million hectares (approx. 12 per cent of arable land at that time). In the 1990s, the area of potatoes dropped to about 100 000 ha and, in 2018, potatoes in the Czech Republic were grown on an area of not more than 28 893 ha (approx. 1 per cent of arable land), where in the agricultural sector the potato area covered a surface of 22 889 ha and in the household sector 6 004 ha. The total potato harvest amounted to 713 266 tonnes, 13 per cent less than in 2017. Altogether 47 325 tonnes of this amount were early potatoes, 608 973 tonnes other potatoes and 56 967 tonnes seed potatoes. The hectare yield of potatoes was 24.69 t, 3.16 t less than in 2017.
n WORLD HOP PRODUCER The Czech Republic is traditionally one of the world’s largest hop producers. Hops are among this country´s most intensively grown crops and are a very important 5 |
ANALYSIS
agricultural commodity. More than 80 per cent of Czech hops is exported, ranking this country third among the world´s hop growers, after the USA (38.4 per cent of the world surface area) and Germany (33.2 per cent of the world surface area). The area of hop fields in the Czech Republic has been growing for five years running. According to the ÚKZÚZ central control and testing agricultural institution, the area of hop fields in 2018 amounted to 5 020 ha, which is 75 ha more than in 2017. The Žatec semi-early reddy is still the majority variety. In 2018, 86.6 per cent (4 349 ha) of the total cultivation area was planted with this variety.
n TRADITIONAL CROP – SUGAR BEET Sugar beet is a historically traditional crop grown in the Czech Republic. In the 1920s, it was grown on an area of nearly half a million hectares. Today it is grown on a mere 65 000 ha. On the other hand, sugar beet hectare yields have increased significantly, to approximately twice the pre-war level. In 2018, the total sugar beet yield was 3 724.3000 t of tubers, a yield of 57.51 t per hectare, which is 15.3 per cent less than in 2017.
n TECHNICAL CROP – CORN Corn cultivation became increasingly widespread from the early 1980s, when the surfaces grown with this crop increased from approximately 50 000 ha in the 1950s to about 450 000 ha in the 1980s. Currently, this area is much smaller, with grain corn covering approx. 82 000 ha and green corn approx. 224 000 ha. Today, corn is used rather as a technical crop, serving purposes other than for feed or human consumption, mainly in connection with the development of biogas stations for renewable energy production.
n ANIMAL PRODUCTION Meat production in the Czech Republic in 2018 was 447 186 tonnes (+2.1 per cent). The size of pork production remained the same as in the preceding year (210 910 tonnes) and the production of the remaining kinds of meat increased slightly, of beef to 71 579 t (+5.7 per cent) and poultry meat to 164 261 t (+3.4 per cent). Cattle/beef In 2018, from 236.6 thous. cattle (+4.0 per cent) slaughtered at the slaughterhouse | 6
CZECH BUSINESS AND TRADE
Development of agrarian trade (in CZK billion) Year
Export
Import
Share in total exports (%)
Share in total imports (%)
2013
160.6
184.4
5.1
6.5
2014
180.2
199.9
5
6.2
2015
201.4
220.7
5.2
6.3
2016
201.6
224.7
5.1
6.4
2017
196.1
228.6
4.6
6
2018
186.1
226.4
4.2
5.7
Source: Ministry of Agriculture of the Czech Republic
71 579 t of beef was produced (+5.7 per cent). The prices of cattle for slaughter remained practically unchanged in 2018 year on year (+0.2 per cent). The average price of bulls for slaughter was CZK 47.36 per kg live weight and CZK 86.19 per kg carcass weight. Pigs/pork Altogether 2 309.7 thous. pigs (-1.2 per cent) were slaughtered and 210 910 t of pork was produced in the Czech Republic in 2018 (marginal decline in comparison with 2017). For the whole year, the prices of pigs for slaughter were much below the 2017 level (-16.1 per cent). On an average, pig breeders were selling fattened pigs for CZK 27.27 per kilogram of live weight or for CZK 35.45 per kilogram of meat.
Poultry/poultry meat In 2018, poultry meat production amounted to 164 261 t, 3.4 per cent more than in 2017. In 2018, the average price charged by breeders for chickens for slaughter was just slightly below the 2017 level (-0.9 per cent). In the course of the year, the price fluctuated around CZK 23.03/kg in live weight.
n CZECH AGRARIAN PRODUCTS
ARE INCREASINGLY DIRECTED TO NEIGHBOURING STATES
Agrarian exports are an important part of Czech trading with foreign countries. Agrarian imports account for approximately one percentage point more than the total Czech agrarian exports. In 2018, most agrarian exports went to Slovakia (21.8 per cent) and Germany (19.7 per cent). The third most important destina-
Most important export and import items (2018) Value of exports (CZK billion)
Share in agrarian exports (%)
Cigarettes, cigars
15.9
8.9
Animal feed preparations
11.2
6.3
Bakery goods
9.9
5.6
Milk, cream
8.8
4.9
Food preparations
8.5
4.8
Wheat
8.4
4.7
Beer
6.7
3.8
Value of imports (CZK billion) Pork
Share in agrarian imports (%)
14.3
6.6
Bakery goods
9.2
4.3
Cheeses
8.5
4
Cigarettes, cigars
8.3
3.8
Chocolate and cocoa preparations
8.1
3.8
Food preparations
8.1
3.7
Animal feed preparations
7.6
3.5
Poultry meat
6.2
2.9
Source: Ministry of Agriculture of the Czech Republic
Breakthrough Soil Management Rules The Ministry of Agriculture has prepared breakthrough rules for soil management that will restrict the size of monoculture surfaces. From the beginning of 2021, farmers will be allowed to cultivate a single kind of crop on surfaces not larger than 30 hectares. ‘Our intention is to improve the condition of farmland, and with it the condition of the environment. If farmers stop cultivating monoculture crops on vast, continuous surfaces, this will improve the water retention capacity of the soil. This is very important, considering the current sequence of dry years and the unfavourable climatic prospect,’ said Miroslav Toman, Minister of Agriculture. Farmers will have to make sure that a single crop is grown on not more than 30 hectares of a continuous
area of land. In the case of larger monoculture surfaces, the fields will have to be separated by a protective belt, overgrown with grass or fodder crops, at least 22 metres wide. Another possibility is alternating several crops on the plot, each on a surface not larger than 30 hectares. The change will apply to all farmland and will affect about 3 000 farmers tending some one million hectares of fields. The Ministry has incorporated the rules into a government regulation, which stipulates the proper management rules. Farmers will be obliged to observe those rules to qualify for certain subsidies (e.g. direct payments on the surface or support from the Rural Development Programme). The government is expected to approve the regulation by the end of this year.
tion for Czech agrarian exports was Poland (10.6 per cent), followed by Italy (7.2 per cent), Austria (5.7 per cent) and Hungary (5.1 per cent). The largest volume of Czech agrarian imports in 2018 came from Germany and Poland, with shares of 21.7 per cent and 16.9 per cent respectively. Other important items came from the Netherlands (6.8 per cent), Slovakia (6.4 per cent), Spain (5.8 per cent), and Italy (5.6 per cent). A survey of the commodity structure of Czech agrarian exports and imports shows that the most important agrarian export items in 2018 were cigarettes, animal feed preparations, bakery goods, unconcentrated milk and cream, and various food preparations. The main agrarian products imported into the Czech Republic were pork, bakery goods, cheeses, cigarettes, and chocolate.
Last year, the Czech agrarian trade deficit increased by approximately CZK 7.88 billion year on year, reaching CZK 40.3 billion. This has been the country´s worst balance to date. The last time the Czech agrarian balance sheet showed a surplus was in 1993. In autumn 2019, the Agrarian Union of the Czech Republic estimated that this year´s deficit may fall to CZK 45 billion. The cause is repeatedly the same: we export mainly raw materials and import processed foods and semi-finished products. An example is the meat trade balance, which accounts for more than one-half – 55 per cent – of the deficit. Still at the beginning of this millennium, The CR imported 60 000 t of meat per year, and during the first eight months of 2019 the figure was 326 000 tonnes. An especially unfavourable situation has developed in pork trading,
Czech Agricultural Production in 2019 In 2019, the production of the sector of agriculture was worth CZK 140.3 billion, the most since the summarisation of the economic account for agriculture was introduced. Since then, both crop and livestock production have increased. Record values have also been achieved by certain cost items, compensation of employees, tenure and rent. After two years of recession, business income rose by 11.0 %, to CZK 17.5 billion. In 2019, the ratio of crop production to livestock production was 56.5 % to 37.7 %. As regards the value of crop production, the highest ranking items were cereals, technical crops and forage crops. In livestock production, the dominant items were milk production, pigs for slaughter, and cattle for slaughter. The value of crop production increased by 4.6 %, to CZK 79.2 billion, year on year. Most responsible for the increase was the higher harvest of cereal crops, hops, green corn and silage corn, vegetables and potatoes. The potato, fresh vegetables, and fruit price indices increased year on year, with the exception of pears and apples. On the other hand, the prices of all cereal crops, sugar beet, wines, hops and legumes decreased.
where Czech self-sufficiency dropped below 50 per cent. The Union estimates that the fall will continue and that the Czech Republic´s self-sufficiency in pork might fall below 40 per cent. An interesting point, according to the Union, is that the demand for Czech animals for slaughter and genetic material continues. The table featuring the main items traded with foreign countries shows that in some of the commodity groups certain items figure on both the export and import sides, in similar volumes. The dominant items of agrarian export are cigarettes, cigars, etc. with a volume of nearly sixteen billion. This is because manufacturing plants of the concerns, Philip Morris and British American Tobacco, are located in this country. Figuring highest on the side of imports is pork, with a volume of CZK 14 billion.
Livestock production rose by 2.2 % year on year, to CZK 52.8 billion. Higher yearon-year production indices are shown by all commodities with the exception of cattle, eggs, and other animal products. Cattle and pig production, on the other hand, decreased in comparison with the previous year, and so did milk production. The prices of pigs, poultry, and milk increased. Intermediate consumption, i.e. the value of the goods and services consumed as inputs by the process of production, increased by 3.2 % in comparison with the previous year. Most of this volume is formed by feeds and energy and lubricant consumption. Gross added value, representing the resulting effect of agriculture, increased by 3.7 % year on year, to CZK 44.9 billion, which is the second highest value after 2016. On the cost side, record values were shown by both compensation of employees, which rose by 4.3 %, and tenure and rent, where the year-on-year increase was 1.8 %. The final economic result of agriculture is influenced by the volume of agricultural subsidies. The estimated volume of other subsidies paid out for production in 2019 was CZK 34.7 billion, 5.3 % more than in 2018.
7 |
ANALYSIS
CZECH BUSINESS AND TRADE
From Crop Area Decrease to the Largest Agricultural Enterprises in the EU and to Ecofarms SOWN AREAS OF AGRICULTURAL CROPS IN 1989 AND 2019 (%) 100
Thous. ha
80 70 60 50 40 30 20
n MINERAL FERTILISER
CONSUMPTION HAS DECLINED MASSIVELY
One of the most visible trends relating to the changes in the structure of Czech agriculture | 8
Wheat
Rye
1989
2017
Wheat flour 1989
Chickens for fattening status
10 1989
2019
Wheat
Rye
Barley
Oats
Other cereals
Legumes
Potatoes
Technical sugar beet
Rape
Flax
Forage crops
Other crops
Corn grain
Kg/head/year
0
In 1989, 96.0 % of farmland in the Czech Republic was used by the state and the cooperative sectors. A full 62.1 % of this was unified agricultural cooperatives, specifically 1 024 cooperatives, with an average surface area of 2 574 ha, and 174 state farms, accounting for 25.7 % of the total surface area of farmland, with an average surface area of 6 259 ha. The essential changes in the structure of agricultural enterprises, which took place after the abandonment of the socialist farming system, are shown by the results of the latest Farm Structure Survey (FSS) conducted in 2016. The data were representative for a total of 26 525 farming units, with an average surface area of 130 ha, where 23 403 natural person units, with an average surface area of 44 ha, accounted for 30.1 %, and juristic person units, with an average surface area of 774 ha, for the remaining 69.9 %. Cooperatives managed 19.3 % of the farmland and less than 1 % was owned by the state. In this respect, Czech agriculture stands out strongly among the EU28, where the average size of one farming unit is only 16.6 ha, according to the FSS. This also holds in comparison with the other former socialist bloc countries: for example, in Slovakia the average farm acreage is 74 ha, in Poland 10 ha, and in Romania a mere 4 ha.
Kg/head/year
90
Million head
Over the past 30 years, crop areas have been reduced by onequarter, but per-hectare yields of most crops have increased. The structure of what is growing in the fields and the number of farm animals kept has changed, and so has the composition of our diet. Environmentally friendly farming is practised on one-eighth of farmland.
PRODUCTION AND CONSUMPTION OF SELECTED COMMODITIES
Cattle 1989
Source: www.czso.cz
is the marked workforce reduction. While in 1989 there were 569 000 people working in agriculture, in 2016 the number was only 130 000 regularly employed persons, according to the FSS. In addition, owing to changes in the use of agricultural technologies, the proportion of women among farm workers dropped from 38.9 % to 32.5 %. Another noticeable phenomenon is the marked decline in the use of mineral fertiliser: while in 1988/1989 the consumption of nitric, phosphoric, and potassium fertilisers amounted to 995 000 tonnes, in 2017/2018 the consumption was a mere 375 000 tonnes. The consumption of pure nutrients per hectare of farmland dropped from 233.7 kg/ha to 106.4 kg/ha. Over the past 30 years, crop surface areas have decreased by one-quarter, from 3 278 000 ha to 2 436 000 ha, and the structure of the sown areas has changed considerably. A fact that cannot escape notice is the enormous extension of the rape sowing areas, which nearly trebled between 1989 and 2019, increasing by 277 000 ha. The opposite phenomenon was shown by fodder crop cultivation on arable land, whose surface area in the same period decreased by 581 000 ha, i.e. by more than one-half. This change shows an obvious relationship with the decline in animal production, specifically cattle breeding.
Here, it is necessary to point out that, in most commodities, the reduction of agricultural production is largely compensated for by higher efficiency: more efficient use is made of the sources, specialisation is more widespread, etc. This can be illustrated by comparing three-year averages for the 1987-1989 and 2016-2018 periods. In crop production, the yields of most agricultural crops increased. For example, in technical sugar beet, the increase was 72.0 %, to 64.4 t/ha, rape increased by 18.6 %, to 3.37 t/ha, wheat by 18.0 %, to 5.85 t/ha. In livestock production, for example, the average milk yield per cow increased from 3 900 l to 8 300 l of milk per year, and the average laying of one hen increased from 249 eggs to 307 eggs per year.
2017
Beef and poultry meat consumption
Beef 1989
Poultry meat 2017
Source: www.czso.cz
2017, wheat flour consumption rose from 85.6 kg to 95.7 kg per capita per annum. On the other hand, rye flour consumption in the same period decreased from 22.9 kg to 8.8 kg per capita per annum. In the past 30 years, Czech farmers reduced their livestock significantly. This also con-
cerned cattle, whose stocks fell from 3.5 million head in 1989 to 1.4 million head in 2019. The situation in poultry breeding was similar in the period under review, when the total poultry numbers were reduced from 32.5 million to 23.0 million. The number of broilers, however, increased, by a to-
CONSUMPTION OF MINERAL FERTILISERS FROM 1988/1989 TO 2017/2018 Nitric fertilisers
Phosphoric fertilisers
Potassic fertilisers
1988/1989: Total 994 626 tonnes 2017/2018: Total 374 995 tonnes
n OUR DIET DIFFERS FROM THAT
OF 30 YEARS AGO – THIS IS REFLECTED IN THE PRODUCTION OF AGRICULTURAL COMMODITIES
Between 1989 and 2019, wheat cultivation increased slightly. Wheat acreage increased by 1.3 % in that period and its share in sowing areas rose by 8.8 p.p. An opposite trend was shown by rye, which was sown on smaller areas, covering 78.8 % less of the surface and whose share of the sowing area was down by 2.8 p.p. Between 1989 and
Chickens for fattening
35 30 25 20 15 10 5 0
Rye flour
Source: www.czso.cz
tal of 1 million and their share of the total number of domestic fowl rose by 19.2 p.p. In food consumption, these two trends are reflected, on the one side, in lower beef consumption, which fell from 30.0 kg in 1989 to 8.4 kg per capita per annum in 2017, and on the other side, in higher poultry meat consumption, which rose by 13.0 kg to 27.3 kg per capita per annum. When speaking about food consumption, mention must necessarily be made of the nearly “iconic” consumption of fruit. Between 1989 and 2017, its total consumption increased, from 70.5 kg to 82.0 kg per capita per annum, while the popularity of temperate zone fruit slightly decreased: in 1989 its consumption was 53.6 kg per capita per annum, while in 2017 it was 46.9 kg. It is left to speculation whether this trend could be influenced by a smaller domestic fruit harvest, which declined from the average 470 000 tonnes in the period between 1987 and 1989 to the average of 313 000 tonnes between 2016 and 2018. A dramatic change took place naturally, in connection with the significant changes in foreign trade in agricultural commodities – in southern fruit consumption, which more than doubled between 1989 and 2017, when it increased from 16.6 kg to 35.1 kg per capita per annum. Christmas queues for tangerines remained just vague memories.
n THE CZECH REPUBLIC IS TOP
IN EU COMPARISONS FOR ENVIRONMENTALLY FRIENDLY FARMING
In 1990, the first three entities practising environmentally friendly farming were registered in the Czech Republic. They managed altogether 480 ha of farmland, according to the Ministry of Agriculture. By 2017, the number of ecofarms increased to comprise 4 399 entities farming 520 000 ha, which is 12.4 % of the total area of farmland. In this respect, Czech agriculture holds a remarkable position in international comparisons. According to the FSS (later FSS data are not available for all indicators), only Austria has a greater share of ecofarms among the EU28 countries and, as regards the share of ecologically worked farmland, the Czech Republic holds fourth position after Austria, Estonia, and Sweden. Marcela Mácová Czech Statistical Office, Agricultural and Forestry Statistics Department 9 |
CZECH BUSINESS AND TRADE
Agriculture as a Pillar of Sustainable Development GEOtest has been active in the area of international development for over 20 years. The company's success stems primarily from its high-quality professional background. The main competitive advantage of the company is the fact that, due to great efforts, even in difficult times GEOtest has managed to maintain a multidisciplinary and wide range of services. Moreover, the company has been able to extend these services according to the current market needs. GEOtest offers services to clients through its companies in the Czech Republic, Bosnia and Herzegovina, Mongolia, Romania, and Slovakia. Since 2017, GEOtest has been a member of the INOGEN global environmental alliance with headquarters in the United States. This prestigious international alliance associates more than 200 major environmental companies worldwide.
geotest.cz | 10
The core focus of GEOtest has always been on the geological sphere, especially engineering geological and geotechnical surveys for road construction, and ecological services, which have always been dominated by remediation of what are known as “old environmental loads”. At the beginning of the new millennium, the company began to expand beyond the territory of the Czech Republic. Therefore, it was necessary to adapt GEOtest’s services to the needs of the global market. The company thus began to provide a wide range of services in the field of sustainable development, in particular services related and contributing to fulfilment of the Sustainable Development Goals (SDGs). Among the most significant clients are prestigious international institutions, such as the United Nations Development Programme (UNDP), the European Commission (EuropeAid), the World Bank (WB), the European Bank for Reconstruc-
tion and Development (EBRD), the European Investment Bank (EIB), and development agencies such as the Czech Development Cooperation (CZECHAID), the United States Agency for International Development (USAID), the Danish International Development Agency (DANIDA), the Swedish International Development Cooperation Agency (SIDA). One of the major pillars of sustainable development is undoubtedly grounded in the agricultural sector. The agricultural services provided by GEOtest thus directly contribute to the fulfilment of several SDGs. In collaboration with renowned Czech and international scientific institutions and agricultural enterprises, GEOtest experts have successfully implemented dozens of agricultural projects on four continents. The development of a government strategy for the agricultural sector in Tanzania and the action plan for the development of the dairy sector in the Philippines may be counted as some of their most significant achievements. In addition to the Philippines, GEOtest participated in the development of the dairy sector and livestock farming in Bosnia and Zambia. Within both these countries, projects were focused on supporting the development of local agricultural cooperatives, increasing their capacities, know-how, and practical experience, leading to higher milk production and processing of good quality milk products. In the case of Zambia, GEOtest experts also applied their multidisciplinary approach and carried out hydrogeological passportisation of local water resources so they can be used as a source of drinking water for cattle. Another area of GEOtest focus is the implementation of projects related to climate change mitigation and adaptation due to the introduction of sustainable and environmentally friendly farming practices, especial-
ly what is called “climate-smart agriculture”. Such projects were implemented in Ethiopia and Kenya where, besides implementation of specific production schemes introducing anti-erosion measures and sustainable management of land and water resources, enabling access to the market and increasing food nutritional value are emphasised. In addition to the significant references above, GEOtest has implemented a number of other agricultural projects across the world. Whether it was supporting the establishment of plastic and glass greenhouse agricultural production in Bosnia and Northern Macedonia, supporting the development of regional coffee markets in Central America and the Dominican Republic, providing technical assistance to the sugar sector development in Madagascar, supporting aquaculture in Uganda, introducing innovative irrigation systems in Ethiopia and Malawi, GEOtest experts have always been successful in facing the challenges of the local environment and in contributing to sustainable development. GEOtest today is a complex company providing a wide range of services across the areas of expertise, including agriculture. The services provided are always tailored to customer needs and local conditions. Thanks to the ever-expanding range of high-quality services, the company has been able to adapt to the needs of the modern market and has successfully established itself in the highly competitive environment for more than 50 years. Damir Kasum, Blanka Křivánková, and Jan Hillermann GEOtest, a.s.
11 |
ANALYSIS
CZECH BUSINESS AND TRADE
Manufacture of Food Products Structure of section CZ-NACE 10 10.1 Processing and preservation of meat and manufacturing of meat products 10.2 Processing and preservation of fish, crustaceans and molluscs 10.3 Processing and preservation of fruit and vegetables 10.4 Manufacture of plant and animal oils and fats 10.5 Manufacture of dairy produce 10.6 Manufacture of grain mill and starch products 10.7 Manufacture of bakery, confectionery and other farinaceous products 10.8 Manufacture of other food products 10.9 Manufacture of industrial fodder
The manufacture of food products coming under the CZ-NACE 10 group is an important sector of the Czech manufacturing industry. The main strategic priorities of the Czech food industry are: adequate self-sufficiency in food production, competitiveness and efficiency of food production, its safety and the protection of consumers.
ceous products (CZ-NACE 10.7). Bakery production comprises the traditional baking of bread. The volume of bread production is roughly below 300 000 tonnes.
The range of bakery products is enlarging. Demand is growing for handcrafted breads and toast breads. On the other hand, a declining trend is shown by ordi-
IMPORT TERRITORIES
Germany 25%
n DEVELOPMENT OF THE SECTOR
Most of the food products, especially those made by big firms, are manufactured industrially using digitalisation and robotisation. A prevailing part of those companies are owned by foreign capital. In some of them, however, especially the smaller ones supplying local markets, artisan production is maintained. Most of their products are sold through retail chains. Foods are sold to consumers both | 12
Meat processing and preserving and meat product manufacturing (CZ-NACE 10.01) is one of the key sectors of the section under review linked with animal production. The business base of the meat industry is one of the largest and the steadily growing business bases in the framework of section CZ-NACE 10, which comprises 2 100 units of all size categories, i.e. about one-quarter of the entire sector. In comparison with agrarian-oriented countries, this sector is formed by smaller, especially slaughtering facilities. As regards meat, a certain revival has taken place in beef production, but beef imports will continue, and this also applies to pork, traditional meat in Czech cuisine. That is why restructuring of the sector and its greater support are envisaged, especially as regards the rearing of pigs, from both national and EU sources. This
involves mainly investment in technologies, but also in facilities aimed at improving the animals’ living conditions. Poultry meat production, too, has increased. Here, demand is motivated primarily by growing interest in white meat, which is preferred by consumers for its nutritive qualities. Mutton and rabbit meat is generally less in demand. Another sector linked with livestock production is dairy produce manufacture (CZ-NACE 10.5). Milk production in the Czech Republic, where the stocks of milking cows have been reduced, is based on high utility value and a better quality of milk. The structure of dairy produce has changed in the course of years. The latest evaluation (2018) showed a decline in butter production, while the production of cheeses and curds and some other products, such as drinking milk and dairy desserts, has increased. The structure of dairy produce, too, is changing, with a part of milk fat being substituted by unsaturated fatty acids, contained in olive or rape oils. Dairy products are an excellent source of calcium, and they are therefore especially suitable for certain groups of the population. A sector dependent on agrarian plant production and linked with grain mill production is the manufacture of bakery, confectionery, and other farina-
Other 25% Poland 20% Germany 25% Slovakia 7% Other 25% Italy 5%20% Poland Netherlands Slovakia 7% 5% Spain5% 5% Italy Austria 4% 5% Netherlands Hungary Spain 5% 4% Austria 4% Hungary 4%
Source: www.czso.cz, www.mpo.cz
EXPORT TERRITORIES Slovakia 25% Other 24% Germany25% 18% Slovakia Poland24% 11% Other Hungary 6% Germany 18% Austria 11% 5% Poland Italy 4% 6% Hungary France 4% Austria 5% United Italy 4%Kingdom 3% France 4% Photo: pixabay.com
over the counter and through e-shops, whose number is continuously increasing. The assortment of the foods is very varied. On sale are foods with both short and long lifetimes. Bio and farm products are also included. Production is divided according to the agrarian raw materials processed, so that the structure of the CZ-NACE 10 section is relatively wide, with both crop and animal production included.
United Kingdom 3%
Source: www.czso.cz, www.mpo.cz
nary bakery products, while demand for frozen semi-finished products is increasing. A somewhat fluctuating trend can be noticed in the volume of fresh confectionery production. Its value, however, is increasing, mainly thanks to the use of better raw materials and their better appearance. The trend towards increasing the proportion of packed goods continues, which, together with growing wages and other factors has an impact on costs. The sector has a large business base, comprising categories of all sizes with units scattered all over the country, and it is an important employer.
n FOREIGN TRADE The export of food products in the years under review was growing until 2015. Then, in 2016, the growth came to a stop, followed by a decline in 2017. Imports, however, grew until 2016 and, in 2017, they were stagnant. Exports depend on demand, and the search for new territories. An important role in these efforts should also be played by, besides businessmen (which does not mean just big firms), agrarian diplomats operating in selected countries – potential importers of Czech food and food products. Also the imports of more or less processed foods are on the rise, realised mainly by supranational retail chains. There are also firms in the meat industry importing meat for further processing. Between 2009 and 2018, the trade balance in food products was unfavourable, albeit with a declining trend.
n TERRITORIAL STRUCTURE
OF FOREIGN TRADE
The deciding import territories in the CZ-CPA 10 product category are the neighbouring countries and EU members, Germany, and Poland. As regards the export of these products, the largest territory is Slovakia, followed by Germany and Poland. The import and export shares of those countries are shown by the neighbouring graphs.
n PROSPECTS OF THE SECTOR The manufacture of food products is relatively wide-ranging, both as regards actual production and the product range. The product range is innovated and adjusted in the course of the year. As a rule, the sup13 |
ANALYSIS
CZECH BUSINESS AND TRADE
Export of selected kinds of goods 2018 Code
Name of goods
2019
thous. tonnes
CZK million
thous. tonnes
CZK million
1001
Wheat and meslin
1 885
8 399
1 745
8 312
1514
Rape oil
285
5 035
279
5 545
1701
Beet sugar
318
3 248
272
2 978
1906
Bakery goods
179
9 945
192
10 703
Milk, cream, non-concentrated, unsweetened
902
8 829
875
8 573
401 2106
Food preparations
67
8 587
76
9 900
2203
Malted beer
521
6 728
533
7 357
2309
Animal feed preparations
515
11 617
515
12 531
Source:
ply is the most varied before Christmas. It necessarily responds to the demand by different groups of the population, according to age, for example, with regard to infant and child food products, and food products in other categories, with respect to their health benefits, physical load, etc. An important consideration is the consumers´
income, where unique foods – delicatessen – are produced for consumers with high demands and good financial backing. The offer naturally comprises products for ordinary consumers. This applies especially to the domestic market, but to a certain extent also to export. Today, the consumer also wants to know the origin of foodstuff.
ompetitive and efficient food production C Food safety and customer protection. Further strategic targets include: ensuring a rational degree of food production with the maximum usage of domestic raw materials, efficient usage of the processing facilities and environmentally sustainable food production, promotion of domestic production and its domestic consumption and the higher export efficiency of the industry. Of basic importance for the further development of the food industry is state support in the areas of science, research and development and a Nutrition Policy based on the support of good quality. This is linked with the support of the practical application of new scientific and research knowledge and innovation in all respects.
This requirement is met by the food labelling system embedded in the Food Law. Concerning the origin, there is a regulation stating when a product may be designated as “Czech Food” or “Bio Food”. With regard to the quality system, a large proportion of consumers focus their attention on products allowed to use the “KLASA” national label, or products which are holders of the “Regional Food” award. Czech and EU foods of extraordinary quality are protected by special instruments – the Designation of Origin, Protected Geographical Indication, and Guaranteed Traditional Speciality designation. Investments in modernisation are expected to increase in the years to come. The following strategic priorities are envisaged as determining factors of the future perspectives of the food industry: S ecure food supply and adequate self-sufficiency
n BEVERAGE PRODUCTION Beverage production, Section CZ-NACE 11. In the framework of the manufacturing industry, this is a section of an economically smaller size. The importance of beverage production, however, is based on the fact that beverages play an irreplaceable role in the diet of people of all ages. Beverage production is strongly influenced by popular traditions, the country´s natural conditions, and the changing preferences of people. In the Czech Republic, a characteristic feature is beer consumption. That is why the production of malt made from malting barley is a strongly represented sector. In certain regions, however, people prefer wine, especially in regions where grapes are grown and where wine-growing is a tradition. In spite of this, most of the wine consumed in this country is imported. A certain part of the population consumes spirits.
SINCE 2011
ABOUT US We are a small family manufacture in the heart of Wallachia, a region in the easternmost part of Moravia. We are continuing the tradition of fruit spirit and liqueur production in the region and are building on the experience of our family, passed on from generation to generation. We are bound together by love and enthusiasm for what we do. Our priority in production is the choice of the highest quality fruit supplied by regional growers who cultivate fruit in small quantities, giving it special care. Our traditionally gentle processing and the subsequent multiple distillations lend our unique and authentic distillates their specific character. Our main products are plum, pear, apricot and quince brandies, gin, Wallachian drops, and Williams pear and other brandies.
Spa areas often focus on mineral waters, which form part of the curative programme of spas. The growing consumption of a broad range of non-alcoholic beverages, and consequently their production, is largely due to the development of motoring, which is continuously on the rise, and to the broadening production of various novel beverages introduced as items of competition. Certain beverages are imported, but a large proportion of them are of domestic origin. Among distillates and spirits, new trends can be observed, which are linked with the growth of people´s incomes and
greater demand for more expensive brands. Marketing success is also witnessed by bitter herb liqueurs, domestic rum and vodka, and the relatively broad range of local and foreign brands. Warm weather in the past few years has increased the interest in non-alcoholic beverages, which in turn incites their manufacturers to keep pace with the new trend. This concerns, for example, beverages with a lower sugar content, and production which is friendlier to the environment. New beverages, such as natural mineral waters, spring water, baby water and packed drinking water are also important.
n DEVELOPMENT
Pod Lipůvkou 1068 756 54 Zubří Czech Republic palenicezubri@palenicezubri.cz www.palenicezubri.cz Tel.: +420 603 504 275; +420 604 128 651
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Photo: pixabay.com
Pálenice Zubří
Structure of section CZ-NACE 11 (here the breakdown is by classes; this section is not broken down by groups): 11.01 Distilling, rectification and mixing of spirits; 11.02 Production of wine from wine grapes; 11.03 Production of apple wine and other fruit wines; 11.04 Production of other non-distilled fermented beverages; 11.05 Production of beer; 11.06 Production of malt 11.07 Production of non-alcoholic beverages, bottling of mineral and other water.
OF FOREIGN TRADE
For the entire period under review, the foreign trade balance showed positive values. Its favourable development was based on the volume of exports, which reached their peak in 2015. In subsequent years, this volume was declining, until 2018, when it began to rise again. Imports were growing for the entire period under review, with wine imports adding most to this value. 15 |
ANALYSIS
CZECH BUSINESS AND TRADE
Czech Vegetable Seed Is Heading all over the World IMPORT TERRITORIES Germany 14 % Germany 14 % Italy 11 % Italy 11 % Poland 10 % Poland 10 % Hungary 9 % Hungary 9 % France 8 % France 8 % Slovakia 7 % Slovakia 7 % United Kingdom 5 % United Kingdom 5 % Austria 4 % Austria 4 % Other 32 % Other 32 % Source: www.czso.cz, www.mpo.cz
EXPORT TERRITORIES Slovakia 27 % Slovakia 27 % Poland 24 % Poland 24 % Germany 12 % Germany 12 % Hungary 7 % Hungary 7 % Russia 5 % Russia 5 % Austria 4 % Austria 4 % Italy 3 % Italy 3 % Sweden 3 % Sweden 3 % Other 26 % Other 26 %
Source: www.czso.cz, www.mpo.cz
From the territorial point of view, most imports come to the Czech Republic from EU states, specifically Germany, Italy, Poland, and Hungary. Most Czech exports, from the territorial point of view, go to the neighbouring countries, traditionally to Slovakia, followed by Poland and Germany.
n QUALITY OF CZECH FOOD Higher quality of food products adds to the competitiveness of Czech agrarian production. High-quality food products are usually certified and are specifically labelled so as to assist customers in better orientating themselves in the shops. KLASA Label The national label KLASA, introduced in 2016, is a part of the state-supported “Promotional Campaign in Support of Food Quality”. Its | 16
priority is to offer consumers quality foods with exceptional quality characteristics, which raise their added value and guarantee their uniqueness in comparison with ordinary products sold in the market. Another purpose of this project is to boost the competitiveness of quality food manufacturers. Since its establishment in 2003, the KLASA label has not only built prestige for its holders, but has also gained the confidence of the people. The label, awarded for the duration of three years, guarantees the quality and safety of the product. More information, e.g. about the label winning foods, can be found at www.eklasa.cz. Regional Food The Regional Food label is awarded to winners of regional competitions for the
highest-quality agricultural or food products, and is organised by the Ministry of Agriculture in the Czech Republic´s 13 regions. The products must be made from local raw materials and they must have links with the region, such as traditional production methods or original regional recipes. Expert juries choose one winning product in each of the nine categories. The awarded products receive a certificate of the Ministry of Agriculture and the right to use the Regional Food label of the region concerned for the duration of four years. Only small and medium enterprises with under 250 employees may compete for the Regional Food label. This project was launched by the Ministry of Agriculture at the end of 2009. Information about the procedure of awarding the “Regional Food” label and other related issues can be found at www.regionalniporavina.cz. Bio Food The rules for eco-farming and bio food production are set by EU and national regulations. The Ministry of Agriculture supervises the observation of those regulations, so that the control and certification system of eco-farming and bio food production is guaranteed by the state. By 31 December 2018, 748 bio food producers were registered in the Czech Republic. In 2018, the 14th instalment of the “September – Month of Bio Food” information event of the Ministry of Agriculture for consumers was held. Its motto was the slogan “Bio = Food from Ecofarms”. The Ministry of Agriculture wants to use this traditional campaign to present to the public local eco-farms and bio food producers, whose offer of bio foods is broadening each year. More information can be found at www.mesicbiopotravin.cz Czech Food Food producers may use the name “Czech Food” for their product under two conditions: the logo of the product must bear the image of the Czech flag and the inscription “Czech Food”, or just the words “Czech Food”, and the proportion of Czech raw materials used must be indicated on the label, as a reference to the place of origin of the food.
SEMO is continuing a more than 50-year tradition in plant breeding. This Czech seed company has had its best business season. Last year, the company also became a finalist in the DHL Export Award under the auspices of Czech Trade. Vegetable seeds from SEMO go, in their typical yellow bags, to many countries around the world. “We are confident and are unafraid of competition from multinational seed companies,” says Ing. Jan Prášil, Director of SEMO a.s. and Chairman of the Board of Directors.
When did the history of SEMO begin? SEMO s.r.o. was founded in 1994. But the beginnings of breeding here in Smržice are much older. Everything started in 1942. The first breeder, Konrad Dvorský, focused mainly on cereals. Since the 1950s, the breeding station has focused mainly on vegetables. After the change of the political system, we were able to set up an independent company, which, in 2009, was transferred to a joint stock company. To which countries does your company actually export its seeds? Our export developed gradually. Since its inception, we have supplied seeds to Slovakia and nothing has changed since the division of Czechoslovakia. The second destination was Hungary and then Poland. After 2000, our export expanded at a rapid pace. Today we export seeds to Eastern European countries – Russia, Belarus, and Ukraine are important to us. We also sell to the Baltic region and all Balkan countries. But sales are also growing in France, Greece, and the UK. We have also significantly increased export to non-European countries – especially the USA, India, Brazil, and the Middle East.
Which types of vegetables are the most important for SEMO? Traditionally, these are green peas, peppers, and tomatoes. Of course, cucumbers – the delicate snack BABY cucumber is very popular in the United States, for example. Our new parthenocarpic pickling cucumbers dominate their largest market – Poland. We are traditionally strong in root parsley. Our varieties win mainly due to their excellent health. We also have an interesting assortment of pumpkins and squashes. Our radishes have found their way on to the demanding French market. In 2017, we acquired Zelseed, the Slovakian breeding company. The best sweetcorn hybrids from its programme are now in our portfolio. In addition to sweetcorn, we also have a large selection of grain, silage, and CCM varieties of corn. Competition in your business is great. The seed market is dominated by multinational giants. However, SEMO rather belongs in the category of medium-sized companies. Can it succeed on the world seed market in the long term? We firmly believe it can. Indeed, our annual growth in turnover confirms this. In the first place, of course, must be the high quality of the seed offered, which is an absolute priority. All seeds leaving SEMO comply with our high quality standards. We offer graded PRECISION seeds, primed seeds, pills of lettuce and celeriac. Chemical treatment of seeds is on the decline in the EU, so we are looking for new ways. Hot Water Treatment (HWT) is carried out by SEMO on all pepper, carrot, parsley, and brassica seed lots. This treatment eliminates any bacterial infection that may be on the surface of the seed. We use mycoparasitic and supportive
preparations for the treatment of vegetable seeds. At the moment, seed treatment by cold plasma is in the testing phase. We only offer high quality, competitive varieties of excellent seed quality. This is what we mean by our motto – "Seed from the right hands".
Jan Prášil is the Director and Chairman of the Board of Directors of SEMO a.s. He has been with the company since its foundation. He is also a breeder of cucumbers, squashes and zucchini. Since 2010 he has been President of the Czech and Moravian Breeding and Seed Association (Českomoravské šlechtitelská a semenářská asociace). In 2014 he was elected member of the Board of Directors of ESA (European Seed Association). SEMO a.s. 798 17 Smržice u Prostějova, CZECH REPUBLIC Phone: +420 582 301 903, +420 582 301 911 E-mail: profi@semo.cz
17 |
TRENDS
CZECH BUSINESS AND TRADE
Bio Food in the Czech Republic is on the Rise
A long-term ambition is to classify bio products as standard foods and cease presenting them as something exclusive. Bio is simply normal. For example, in Austria and Germany, bio products sold in the shops account for up to 50 % of the offer. That is why the PRO-BIO Association of Eco-Farmers welcomes the efforts of chain stores to enlarge their selection and open up to local suppliers. They are certain of persuading chain stores to exempt bio foods from the exclusive product category and include them in the high-selling category of goods of everyday use, as it has been done in many other countries. This would be very useful, as chain stores and their policies have a massive impact on bio food consumption. Customers have been showing a steadily growing interest in bio products in recent years. Over the past three years, turnover from the sale of bio food has increased more than ten-fold. Special interest is shown in bio foods bearing the private trademarks of specific chain stores. It seems as if the Czech market will soon be copying the situation in foreign countries, and the sale of bio products will continue to increase. To cope with this increase, | 18
chain stores are already enlarging the merchandising space for this brand. The most popular with clients on a longterm basis have been bio milk and dairy produce, fruit and vegetables, including fruit juices and other processed foods, such as spices, mustard, processed coffee and tea, and ready meals, e.g. infant and child nutrition. Czech customers mostly buy bio foods in retail chains, health food stores, farm shops and e-shops. Farmers cultivating bio products obtain grants for ecologically farmed areas and are entitled to special benefits under the Rural Development Programme. Most bio or eco farms are located in the country´s border areas and in other regions where the character of the countryside does not allow other forms of farming.
n THE NUMBER OF BIO FOOD
PRODUCERS IS GROWING
The share of bio foods in total food and beverage consumption in the Czech Republic is steadily around 1 %. Although the Czech bio food market is one of the most advanced among Central and East European states, it is still lagging behind Western Europe. The number of bio food producers, however, is continuously increasing and is growing at about the same rate as the markets in Germany or France. The total turnover of trade in bio foods supplied by Czech producers, too, is increasing each year, and so is the export of Czech bio foods. From the long-term point of view, this is one of the most important and most prominent market growths. Czech producers present their produce at various international fairs. One of these is the well-known “Biofach” fair in Nuremberg. Czech producers like to display their
agriculture, and with commodity expertise. All this is a guarantee of the objectivity and independence of the competition. Many of the competing items are unique and absolutely original foods, which stand their ground in keen competition, even against exquisite foreign bio foods. At the same time, customers´ interest in bio food is growing. In all, 104 products from the entire Czech Republic were entered for the 2018 competition, including 43 bio wines. The best eco farm products in that year included bio beef steak, apricots with lavender and honey – extra jam, bio fresh cheese with herbs, bio honeydew honey and Rhine Riesling – straw wine vintage 2015. The winner of the competition acquires the right to use the “Czech Bio Food” label for the winning product, indicating the relevant year, and obtains an invitation to the Biofach fair, the world´s largest bio exhibition, taking place in Nuremberg. The competition is financially supported by the Ministry of Agriculture.
products there and receive financial support from the state for participation in the form of an exposition. The number of exhibitors at this fair is increasing with the growing number of Czech bio food processing firms.
n CZECH BIO FOOD COMPETITION Each year, the PRO-BIO Union of Ecological Farmers organises a competition for the best bio food of the year. Farmers´ interest in participating in the competition is growing from year to year. Members of the jury are experts with different specialisations and orientations, linked with the food industry and
n THE BIO LABEL Each food item in the Czech market with a logo bearing the word ‘bio’, ‘eco’ or ‘organic’ must have the following information indicated on the packaging: European logo; code of the control organisation; information about the origin of the raw materials contained in the product; in the case of the food item being produced in the Czech Republic, it must also bear the Czech national logo, the Biozebra. All entities placing their bio foods in the market are controlled and must be registered. The name of every eco producer or businessperson qualified to place their bio product/s in the Czech market and duly registered in the Czech Republic can be verified in the Eco-businesses Register. Behind each eco product is a farmer who uses traditional farming methods. These methods exclude the use of agro chemicals and ar-
tificial fertilisers, and farmers are obliged to keep their livestock in above-standard conditions. The processors and producers, too, must observe strict rules, the observance of which is supervised by a strict control system. No other quality mark in the Czech Republic has such strict and comprehensive rules as those applying to eco products. Up to 17 % of cattle, 46 % of sheep, 35 % of goats and 22 % of horses in the Czech Republic are kept in accordance with the eco farming management system. The proportion of cattle without marketable milk production, however, is more than 50 %. The surface area of land worked under the eco farming system is continuously increasing. Currently its size is about 13 % of the total agricultural land fund. The Czech Republic is among 20 countries with the largest proportion of land using the eco farming management system. Source: www.eagri.cz
COMAGRIN, a.s.
Entities in the Czech Republic using the eco management system as at 30 April 2020 Ecological entities by type of activity Eco farmer 4671 Bio food producer 830 Of which: Farm processing unit 222 Distributor 1007 Producer or supplier of bio propagation material 72 Eco beekeeper 9 Eco fish farmer 17 Eco mushroom grower 3 Eco collector of wild plants 23 Other 11 Concurrence of selected activities Eco farmer, who is also a distributor 132 Bio food producer, who is also a distributor 383 Eco farmer, who is also a bio food producer 348
Your partner for trading in agricultural commodities, mainly feed and food cereals and oilseeds.
Photo: pixabay.com
Bio farming and bio food production are becoming increasingly popular in the Czech Republic. In support of this trend, representatives of the Czech Union of Trade and Tourism (SOCR ČR) and the PRO-BIO Association of Eco Farmers have agreed on closer cooperation in this area. The Ministry of Agriculture, too, is planning to support bio food consumption in its marketing campaigns.
comagrin@comagrin.cz www.comagrin.cz
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RESEARCH AND DEVELOPMENT
CZECH BUSINESS AND TRADE
Agriculture - an Opportunity for Innovation “Water hums across the meadow, forests rustle on the rocks, flowers blossom in the garden, a paradise to behold” – these are the initial words of the anthem of the Czech Republic, a country distinguished among EU countries by an extra high share of industry in GDP creation. And yet the words of the anthem are not an exaggeration, but a reflection of the author´s vision of the picturesque Czech countryside.
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search organisations within the agricultural sector were founded more than a century ago. For example, the Water Management, the Meteorological and the Geological Institutes were founded immediately after the establishment of the Czechoslovak Republic in 1918. The country has developed very strong Natural Science disciplines at universities and in research institutes, with systematic statistical backing in the sector of agriculture initiated in 1921. That is why agriculture and its development can be monitored in great detail, as can the changes caused by the opening up of the frontiers and the country´s integration into international trade and the State Subsidy Policy. In recent years, the opinion has been gaining momentum that the Czech Republic should be more self-sufficient in food production. The latest data on agrarian foreign trade (AFT) are for 2018, when the negative balance of AFT rose by 24 % to CZK 40.3 billion year on year. The largest proportion of this, specifically CZK 24.2 billion, is owed to EU countries, despite the fact that Czech exports in 2018 were worth CZK 186.1 billion. Although exports have been oscillating over the past few years, the dependence of the Czech Republic on imports is growing, especially as regards imports from Germany and Poland, followed by the Netherlands, Slovakia, Spain, and Italy.
Photo: pixabay.com
The Czech Republic has a number of peculiarities. One of them, besides the moderately undulating countryside, is the type of its settlement: there are more than 6 250 communities in the Czech Republic, 5 500 of which have less than 2 000 inhabitants, and around 2 300 even less than 300. According to OECD, a rural country is one with a population density of about 130 inhabitants per square kilometre. This would mean that, with its population density of just a little over this limit, the industrial Czech Republic is actually a rural country. This explains the high proportion of cultivated land in the total land area, where practically no neglected field is to be found, where forest care is exemplary and has been professionally managed for more than a century, and where a number of
protected landscape areas have been established. Despite the problems caused by a high degree of environmental pollution dating from the past, biodiversity has been relatively well preserved in the country, with ecological agriculture growing significantly in recent years. In 2019, the largest permitted area sown with one crop was reduced to 30 hectares. Regrettably, the Czech Republic has one more peculiarity: while being situated “in the heart” of Europe, it lies “on its roof”, with no major river flowing into it, but with all the water flowing away from it, into three different seas – the Baltic Sea, the North Sea, and the Black Sea. In this time of climate change, water shortage is felt ever more intensely, augmented by soil erosion. This is the reason why extraordinary attention is being paid in the Czech Republic to research, in addition to agriculture and water and soil protection. Special importance is attached to interdisciplinary research, because environmental protection and sustainable management of the countryside is a complicated issue involving all disciplines. In a territory with the above-mentioned population density and water shortage, sustainable management is a must. Climate change, in addition, brings along new challenges and problems that must be tackled. Fortunately, the Czech Republic can boast a good knowledge base. Many of today´s re-
The most widely grown crops in the Czech Republic are cereals (on an area of about 1.35 million ha), rape for grain (approx. 400 000 ha), and green and silage corn (approx. 220 000 ha). Crops grown on smaller surfaces are hops (approx. 5 000 ha) and poppy seeds (30 000 ha). As regards livestock production, about the same number of cattle and pigs are produced in the Czech Republic per year and approximately 21 million heads of poultry. Beef is the only item fully meeting the needs of the population. Each year, the Ministry of Agriculture publishes a “Green Book” with information about the growing number of bio food and eco farms in the country, a “Blue Book” concerned with water management, and a “Report on the Condition of Forests”. Nearly one-third of the territory of the Czech Republic is covered in forests; the afforested area being about 2.6 million ha, with nearly 1.5 million ha (56 %) of this accounting for
forests owned by the state. The structure of the forests is changing in favour of mixed forests and at the expense of the original and still prevailing spruce monocultures. The latter have been intensively attacked by bark beetles in recent years. Most of the surface waters, specifically more than 94 % of the length of the watercourses, are administered by five state enterprises. The quality of both the surface and ground waters has been good in the past 20 years, but the precipitation is continuously decreasing. These unfavourable changes, too, are a challenge for research and development. There is an increasing need to retain water in the landscape, prevent water wastage, ensure its better management, prevent soil erosion, process agricultural production as close to the place of its cultivation as possible, turn food into sources of potential disease prevention and use technologies not requiring hard human labour, i.e. requiring
just the minimum of human interaction. It is obvious that circular economy, i.e. reusing all the raw materials and the natural infrastructure available, can play an important role in the national infrastructure, in addition to the transport, energy and ICT infrastructure. A “natural infrastructure” is essential for the development of communities – ecological stability systems and urban areas, which are an organic part of the countryside (where heat islands can be reduced and water reused). This infrastructure is resistant to natural stress and can cope with yet further occasional occurrences, e.g. chemical or energy breakdowns. This is connected with development, zoning plans, creation of communities with balanced architecture and the prevention of non-regulated urban sprawls. The blue and green infrastructure, which helps reduce heat islands in towns and villages, is increasingly in the focus of the interest of local governments.
HEAD ON OVER TO > WWW.OXALIS.CZ
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RESEARCH AND DEVELOPMENT
CZECH BUSINESS AND TRADE
Radlík Distillery Scores Success in the Market
CZK billion Share of GDP
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By type of R&D (Research and Development)
. CZK billion
Share of GDP
Wage costs
Source: www.czso.cz
This is how natural infrastructure can provide ecosystem services, which, however, are not as yet sufficiently developed and are the object of a number of applied research projects. In recent years, the potential for research in Natural Science with applications in agriculture has massively increased. An example is the BIOCEV research centre in Vestec near Prague. The centre pursues five research programmes – functional | 22
genomics, cell biology and virology, structural biology and protein engineering, biomaterials and tissue engineering, and the development of treatment and diagnostic procedures (more at www.biocev.eu) – in which international teams, people from all over the world, collaborate. Another institution enjoying an extremely good reputation on a long-term basis is the Czech University of Agriculture in Prague, boasting a number of foreign experts as
its graduates (see www.czu.cz). The oldest higher learning institution devoted to Agriculture and Forestry education in this country is Mendel University in Brno (www. mendelu.cz). There is a number of other higher learning and research institutions, which can be proud of their results, e.g. RECETOX, a research centre of the Natural Science Faculty of Masaryk University in Brno (recetox.muni.cz), which concerns itself with harmful substances in food chains, and CzechGlobe – Global Change Research Centre, the Czech Academy of Sciences (http//www.czechglobe.cz.cz) with unique programmes, one of them being the study of how the growth of trees influences the excess of greenhouse gases forming in the atmosphere. Research for the needs of agriculture is pursued by many other organisations, mainly in the framework of the research programmes of the Czech Technological Agency (www.tacr.cz) and the EARTH programme organised by the Ministry of Agriculture (http://eagri.cz/public/web/mze/ poradenstvi-a-vyzkum/vyzkum-a-vyvoj/ narodni-agentura-pro-zemedelsky-vyzkum/program-zeme-1”), in addition to the systematic support provided by the Ministry of Agriculture through its organisations (institutional support). The results of their research can be found in the VaVal public information system and the STARFOS TA CR database (starfos.tacr.cz). As mentioned before, all research work is an interdisciplinary affair. This means that far more solutions than those provided by the above organisations can be used in agriculture. Research expenses, both public and private, are continuously growing in the Czech Republic. In 2019, for the first time, they exceeded CZK 100 billion. Czech research is open to Europe and the world for collaboration. In recent years, an extremely large research base has been built in the Czech Republic with the support of EU funds. This base, and the Czech Republic, are both worthy of attention. This is not just “a paradise to behold”, but a country doing quality research and providing innovations, creating increasingly better conditions for doing business. Rut Bízková
Small fruit craft distilleries, which combine traditional spirits production with modern processes, the enthusiastic personal approach and meticulous craftsmanship of the producers, are becoming increasingly popular in the Czech Republic. One of the most distinguished representatives of those producers is Radlík Distillery in Jílové u Prahy. It is one of those distilleries which raise fruit brandies to a higher level, ranking them in the category of prestigious noble distillates. And distillates are the subject we discussed with distillery owners, Zdeněk Musil and Libor Lacina.
How did the idea of starting distillate production come about? We are graduates of Prague´s University of Agriculture, so Nature and Microbiology are dear to our hearts. Fruit spirits have always held a charm for us. We kept tasting, comparing and admiring them, until we turned our hobby into a profession. This was 22 years ago, and it felt like a miracle when the rather unattractive fruit mash was transformed into a translucid fluid with sparkling glints and captivating aroma and taste. To this day, we are fascinated by the alchemy of the entire process combining fruits of Nature, the operation of microorganisms, the patient work of man, the passage of time, and possibly a bit of good luck. It is still an adventure for us, and we really enjoy it.
Photo: pixabay.com
how much money is spent on research and development RESEARCH AND DEVELOPMENT EXPENDITURE
What kinds of distillates do you make? The basis is traditional fruits, mainly plums, pears, apples, grapes, and apricots. But we also make many non-traditional distillates, for example, from elderberries, raspberries, quinces, mirabelles, and rowanberries. Besides clear distillates, we also offer their golden versions, which mature slowly in small oak barrels. We pride ourselves on small-series products, characterised by tra-
dition, craft production, and a personal approach. The only raw material is fruit. What is the basis of quality brandy production? Its basis is the careful choice of fully mature fruits from regional fruit growers. Manual processing by a small team of enthusiasts allows us to watch the quality throughout the entire process. We also use what we call “controlled fermentation”. This means that fermentation takes place in closed vinificators, where the temperature and mash stirring are regulated by computer; pH adjustments, a meticulous choice of quality yeasts and nutrient salts are a matter of course. The heart of the distillery is a copper double pot distiller, to which we have added a number of our own original innovations. This enables us to individually influence the distillation process and adjust it to the character of the fruit. The master distiller tastes each batch several times during the process and at the end “blends” the resulting distillate.
Your success in competitions at home and abroad is well known. What are your greatest accomplishments you can be proud of? Our most important trophies are, for example, the prizes we won at the Vizovice Tast-
ing competition for a “Community with the best valued samples”, which we obtained in 2011 and 2019. There we also gained 11 “Category Winner” awards, and at the “Flora Tasting Olomouc” we won the “Testing Champion” title three times. There, we also won, on four occasions, the Distillers´ Union Prize for the best collection of distillates and the “Category Winner” title 15 times. We verified the quality of our distillates in the USA, where we participated in the World Spirit Competition in the San Francisco distillate competition. There, in 2018, in keen competition with the most famous world producers, we won three silver medals.
Is there any possibility of seeing how brandy is actually produced? An important factor is our open approach to customers. We let them follow the entire process of production from fruit processing to the final distillation. We want to help promote the perception that fruit brandies are prestigious noble distillates reflecting national traditions, using expensive and diverse raw materials, offering a variety of tastes and aromas and reflecting meticulous craftsmanship. Our wish is that brandy should not be used for uncontrolled drinking, but that it should elevate the spirit and stimulate friendship, well-being, and understanding. 23 |
VITICULTURE
CZECH BUSINESS AND TRADE
Vineyard Areas in the Czech Republic are Increasing, with PIWI Varieties Following this Trend Perhaps no plant is so closely linked with man and his culture as the grapevine. In places where it has been grown for decades and centuries, it has significantly shaped the countryside and become part of the nation´s culture, with songs, customs, poetry and the arts drawing inspiration from it.
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n MODERN TECHNOLOGIES
IN VITICULTURE
Today, the use of modern technologies and machinery in viticulture is a must. They not only save vintners drudgery, but in addition they harvest the grapes sparingly, without damaging them. The use of new methods and technologies is very useful, as they assist not only with the actual harvest, but also during the different phases of grape processing. The machines used are often of the 6th or even 7th generation, and the harvesting is much gentler than manual collecting. These machines can partly make good the labour shortage
subregions. The two vine-growing subregions in Bohemia are Litoměřice and Mělník. The total production potential of the Czech Republic is 19 600 ha. The average yield is around 5 tonnes per hectare. White wine grape varieties account for two-thirds and blue varieties for one-third of the total area planted with vines. The most widely cultivated white varieties are Green Veltliner, Müller Thurgau, Rhine Riesling and Wallachian Riesling. The most strongly represented blue varieties are Saint Laurent, Frankovka, Zweigeltrebe, and Ruland Blue. There were 17 788 vine growers registered in the Czech Republic at the end of December 2019, who cultivated 18 189.223 ha of surfaces grown with vines. Surfaces grown with PIWI varieties, i.e. varieties suitable for environmentally friendly cultivation, are increasing in comparison with previous years. There were 416.76 ha of new vineyards planted with vines in 2019. The most frequent white vine varieties grown in that year were Green Veltliner (1677 ha), Müller Thurgau (1458 ha), Rhine Riesling (1359 ha), and Wallachian Riesling (1182 ha), with Frankovka (1056 ha), Saint Laurent (1012 ha), Zweigeltrebe (745 ha), and Ruland Blue (724 ha) among the blue varieties. Surfaces
grown with blue varieties slightly decreased in comparison with 2018. Of the total of 18 189 ha of vineyards, more than two-thirds are grown with white grape varieties, whose surface is increasing, and one-third are blue grape varieties, with a negligible proportion of 0.5 % of table and rootstock varieties. The average age of the most-widely cultivated varieties is 21 years. A special group is PIWI varieties, suitable for environmentally friendly or bio cultivation. At the end of 2019, their surface area was nearly 694 hectares, 87 hectares more than in 2018. The most widely grown variety is Hibernal. In 2019, the largest wine villages in the Czech Republic were Velké Bílovice (788 ha), Valtice (585 ha), Mikulov (518 ha), Čejkovice (512 ha), Dolní Dunajovice (454 ha), Novosedly (419 ha), Velké Pavlovice (379 ha), Vrbovec (350 ha), and Kobylí (301 ha), all in Moravia. In Bohemia, the largest wine community is Mělník (105 ha).
Manufacture of stainless steel tanks, machines and equipment for grape processing and wine production
IN THE CZECH REPUBLIC
Source: www.eagri.cz, www.mze.cz
Viniicators with inclined stirrer
Viniicators with pneumatic piston
C.M.A. and DELLA TOFFOLA crusher destemmers
n WINE PRODUCTION
The average wine production in the Czech Republic in the past three years has been about 705 000 hl per year. Of the total wine
and add to faster harvesting. Most vintners combine manual grape harvesting with machine collection. Manual work is mostly used in vineyards whose shape and the type of supporting structures used are not suitable for combine-harvesting, or the terrain does not allow them access. The
choice of surfaces for manual harvesting is given by raw material quality requirements. The production of the best wines requires the highest quality processing. Vintners invest large sums of money in vineyard and grape harvesting machines, e.g. self-propelled harvesters, and in the improvement of their technical background. Manpower plays the most important role in difficult terrain, where machines have no or difficult access. Additional labour is most needed during the harvesting period, which lasts for two to three months. This does not mean just work in the vineyards, but also in auxiliary processes. Special labour requirements are in logistics, transport, and grape registration and processing on the line. Apart from the typical professions, there is also a demand for hunters to scare starlings and guard the vineyards.
Pneumatic presses from a volume of 300 l
Photo: pixabay.com
A characteristic feature of viticulture in the Czech Republic is the fact that the vineyards are located in the northern regions of Central Europe, where the humid Atlantic air slows down the ripening of grapes, thus adding to the creation of aromatic and spicy substances in the grape berries. The variability of climatic conditions together with soil diversity lend an original and unique character to the wines produced there, which is especially appreciated in the production of attributive wines. In the Czech Republic, grapevine is grown in the wine areas of Bohemia and Moravia, with Moravia comprising more than 96 % of all vineyards in the country. The Moravian vine-growing region is divided into the Znojmo, Mikulov, Velké Pavlovice, and Slovácko
production in the CR, two-thirds are white wines and one-third red wines. The production of wines with a “protected designation of origin” (CHOP) and wines with a “protected geographical designation” (CHZO) greatly predominate.
UNICOM servis, spol. s r.o. U Elektrárny 4019/4a 695 01 Hodonín Phone: +420 518 344 951 unicom@unicom-servis.cz www.unicom-servis.cz
Automatic lling lines
GAMBA wooden barrels
Automatic DELA TOFFOLA cross--ow lters
25 |
TRENDS
CZECH BUSINESS AND TRADE
Environmentally Friendly Vineyard Management in the Czech Republic
Today, there are some 1 000 ha of wineries using the environmentally friendly cultivation system, which is about 5 % of the total surface area of vineyards in the Czech Republic. There are over 100 farms with certified vineyards and around 80 BIO wine producers. Eco-vineyards are to be found especially in the South Moravia region and also in the Ústí, Vysočina, and Hradec Králové regions in Bohemia, and in the capital of Prague. Vintners´ interest in environmentally friendly wine cultivation has been growing significantly over the past decade. This is due to several factors. The decisive factor is the existence and availability of well-functioning eco-protection vineyard technologies and professional consulting. | 26
Eco-cultivation is practised mainly by larger enterprises. More than 86 % of eco-wineries are tended by vintners with more than 5 ha of vineyards and their owners account for about 40 % of vintners registered as eco-farmers. Why do vintners frequently switch over to environmentally friendly wine cultivation? The two main reasons for them to frequently switch over to environmentally friendly viticulture are the quality of the wine and the soil. An ever-increasing number of vintners are coming to see that only good raw material – sound grapes without pesticide residues – can produce top wines. Only quality raw material can be left to ferment at low temperatures and be properly macerated, which commonly treated grapes can not do, with the wines thus produced “causing trouble”. Viticulture is very demanding as regards protection from pests and diseases. Conventional vineyards require an average of seven chemical sprayings per year, which have a proven negative impact on the environment, on animals, water and soil. In an eco-vineyard, the grower will start by choosing suitable varieties that will do well in the particular soil. Therefore, besides traditional varieties, also newly cultivated types are developed in eco-viticulture. These are carriers of genes with a higher level of resistance to the main fungal pathogens. They include, for example, the Cor-
tis, Hibernal, Johanniter, Laurot, Malverina, Nativa, Solaris, and Saphira varieties. Owing to their resistance to diseases, these varieties are especially suitable for BIO wine production. The most common motive for people to search for wines made from organically cultivated grapes is their concern for the future of our planet and their sensitive approach to the environment. It is the “friendly approach to the environment” that is considered the main advantage of ecowine versus conventional wine. The attractiveness of BIO wines is also closely linked with trends such as fair trade and greater interest in learning the origin of food items. Other reasons for drinking such wines are also their better taste, care for one´ s health and better quality. There are some 333 000 hectares of eco-vineyards in the world, i.e. 4.7 % of the world’s vineyard area. Nearly 90 % of this surface is in Europe and the rest is accounted for by Asia and North and South America. Eco-viniculture in the Czech Republic is comparable in quality and intensity of production with the situation in the neighbouring countries of Germany and Austria. The development of eco-viniculture in this country follows global trends. With a 5 % proportion of eco-vineyards, the Czech Republic ranks within the top 10 EU countries for eco-viniculture.
Photo: pixabay.com
One of the current trends in the world of wine is enlarging the area of organically and biodynamically managed vineyards. Dozens of Czech wineries already cultivate their vineyards using the BIO system. In the past few years, the aggregate surface area of such vineyards has been continuously growing. In this respect, Moravia is comparable with wine superpowers such as France, Spain, and Italy.
27 |
TRENDS
CZECH BUSINESS AND TRADE
Family Company Pleva Potštejn
Wine Tourism
Pleva s.r.o. Potštejn located in the foothills of the Orlické hory Mountains is a family firm which has been engaged in beekeeping since 1969 and, since 1990, also in bee product processing. Its customers come from all over the Czech Republic. The healing effects of bee products are generally well known. Currently, the most popular among these are honey cosmetics. To learn more about the firm´s products, we addressed Company Director, Milan Pleva, to give us further information on them.
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ty to taste a selection of 100 of the best wines, representing different vine-growing sub-regions. Another possibility is visiting some of the large number of wine-tasting events. Most of them are accompanied by local folklore productions with dulcimer band music. Special occasions are Open Cellar Days held during the summer season, where visitors can taste and buy local wines. Local wines are also offered by community wine shops and various wine galleries presenting vintners from the particular locality. In autumn, visitors have an oppor-
tunity to taste the local “Burčák” – semi-fermented grape must – a drink practically unknown elsewhere in the world. Burčák drinking is linked with vintage festivals, some of which have a historical character, accompanied by rich cultural programmes (Znojmo, Mikulov). Another Czech vintner speciality is St. Martin´s wine – young wine placed on the market on St. Martin´s Day, 11th November, and often served with roast goose, sauerkraut and dumplings. Wine is the topic of various vineyard hiking trails leading through the vineyards, and trails devoted to certain wine varieties. Special events are Moravian cellar tours, often accompanied by mobile applications. Visitors also have an opportunity to observe the attractions of the local wine-growing countryside from above – from some of a number of the recently-built lookout towers, one of which has the form of a wine glass. If you are more profoundly interested in the history of viticulture, don´t miss the interactive exposition on viniculture in this and other countries in Mikulov Castle. And don´t forget to taste the local varieties, for example, Pálava, Moravian Muscat, André, and Cabernet Moravia.
Mr Pleva, how did it occur to you to start producing honey cosmetics as a family business? What were your beginnings like? We were selling honey and our customers would ask for propolis tincture, which was highly valued already at that time for its natural healing properties. So we created our first cosmetic samples of it, which immediately became popular and were quickly sold out. And so the decision was made then and there. Can you explain what effects propolis has and what propolis actually is? In brief, propolis is the effusion of the tree buds and bark which bees collect, among other things, for maintaining an antiseptic environment inside the beehive. It has a wide-ranging effect: for example, it acts against mould, bacteria, and viruses, relieves pain and has a regenerating effect.
Photo: pixabay.com
The interest in wine tourism is growing hand in hand with the booming popularity of wine-drinking, especially among foreign visitors coming to the Czech Republic. The wide range of grape varieties grown here, the large number of vintners and the variability of the wine vintages and types of wines produced in the Czech Republic provide wide scope for wine lovers in search of a special experience. A popular undertaking is visiting the Wine Salon of the Czech Republic in Valtice. There, in the cellars of Valtice Castle, visitors have an opportuni-
And what about royal jelly? Royal jelly is the secretion of the pharyngeal gland of the bee of a certain age, exclusively fed to the queen bee. It contains simple sugars, large amounts of vitamins, minerals, hormones, acids and many other substan-
ces. As part of cosmetic preparations, it slows down the process of aging, smooths out wrinkles, heals injuries and adds vitamins and mineral substances to the complexion. Are there any other bee products you would like to mention? A product worth mentioning is apisin – bee venom, which helps patients with rheumatism, both muscular and joint rheumatism, and sciatica. It helps patients suffering with nerve inflammation and joint disease. Cosmetics containing bee venom are manufactured especially in the UK, where one of their users, and consequently their propagator, is Kate, the Duchess of Cambridge, wife of Prince William. We are the only firm in the Czech Republic to process apisin. No bee dies when bee venom is collected.
What does the Pleva Firm produce from bee products? How wide is the range of these products? Our firm can boast the broadest range of cosmetics made in the Czech Republic from bee products. Bee products are sold by bio-shops and e-shops, which offer ointments, tinctures, drops, creams, body lotions, shampoos, hair and skin lotions, as
well as soaps. Honey with various admixtures, as well as mead are also available. In the 1990s, you started your business with your wife Hanka. Today you have also included your children and their families. How would you review the way in which you have passed on your business within your family? Our family firm has been here for 30 years now. This alone speaks for itself. It is nice to see how the firm “is living”, how our sons have been living with it with enthusiasm ever since their childhood, from the beginning of our endeavours. It is diverse and interesting work, and the children enjoy it.
In 2018, you won the Family Firm of the Year Competition. What does this award mean to you? I am very pleased about it. For me the award is confirmation that what we have done, all our efforts and time were not in vain. It is an appreciation of us all, including our employees. The customer can see that everything we do is being done with love. I hold every customer in esteem and am glad when he or she chooses our particular product. www.pleva.cz 29 |
BREWING
CZECH BUSINESS AND TRADE
Czech “Green Gold“ Hops have done well, the 2019 harvest was one of the highest for the past few years.
means that the harvest was 80.40 tonnes. The Sládek variety harvest was 62.06 % (83.20 tonnes) higher and amounted to the current 217.26 tonnes. The total 2019 harvest can thus be valued as one of the highest in the history of Czech hop cultivation, with overall hop production amounting to 7 144.71 tonnes and a 1.43-tonne average yield per hectare. In comparison with 2018, hop production increased by 2 018.29 tonnes (in 2018, the hop harvest was 5 126.42 tonnes), a 39.37 per cent increase year on year. This successful year was very close to the 2016 harvest, when the average yield was 1.61 tonnes and the total harvest was 7 711.61 tonnes.
Owing to the weather during the hop-growing season and the favourable climatic conditions, the 2019 hop harvest was above average. The Czech Republic is the world’s third-largest hop producer, after the USA and Germany. More than half of the Czech production is exported.
n AN ALMOST MILLENNIUM-LONG
TRADITION
On the land which now forms the territory of the Czech Republic, hops have been cultivated for nearly 1 000 years. Czech hops are generally considered the raw vious year. The Premiant harvest amounted to 93.93 tonnes, a 125.75 % (52.34 tonnes) increase. The Sládek variety yields rose by 63.80 %, or 39.41 tonnes, to 101.19 tonnes. In the Tršice region, too, the hop harvest rose significantly, to 934.59 tonnes, 348.41 tonnes (59.44 %) more than in the previous year. The yield of the Žatec semi-early reddish variety was 55.77 %, or 220.01 tonnes, higher, and amounted to the current 614.48 tonnes. The Premiant variety showed an 83.40 per cent increase (6.56 tonnes), which
The company´s main specialisation is production for wineries and breweries. The firm offers the delivery of complete equipment for grape processing. For breweries, it manufactures tanks, brewing vessels and whole breweries with an annual output of up to 12 000 hl of beer. The company further offers stainless pressure and non-pressure vessels, pumps, filters, sanitation stations and other equipment for wineries, breweries, distilleries and the food and pharmaceutical industries. NEREZ Blučina s.r.o. specialises in individual custom production. All processes are managed and controlled by the EN ISO 9001 quality management system.
NEREZ BLUČINA, s.r.o. Photo: pixabay.com
It was especially the close of the vegetative period which was optimal for the ripening of hop plants. The hops responded very favourably in localities with more rainfall, or where the missing moisture was compensated for with irrigation. Hop production increased most distinctly in the Úštěk region. In the Žatec region, hop production rose by 1 287.02 tonnes to 5 76.53 tonnes, a 32.26 per cent increase. The production of the Žatec semi-early reddish variety rose by 889.59 tonnes, an increase of 27.23 per cent. The average yield of this variety was 1.24 tonnes per hectare. The harvest of the Agnus variety amounted to 110.96 tonnes, an increase of 27.29 tonnes (32.62 per cent). The Harmony harvest was 19.35 tonnes, a 7.33-tonne (60.98 %) increase. Kazbek production amounted to 65.26 tonnes, a 20.75-tonne (44.51 %) increase. The Premiant harvest was 202.51 tonnes, 47.05 tonnes (30.28 %) more than in the previous year. The Saaz Late harvest amounted to 97.35 tonnes, a 20.67-tonne (26.96 %) increase. The harvest of the Saaz Special variety was 84.18 tonnes, a 50.83-tonne increase, featuring an extremely high
growth (by 152.41 %). The Sládek hop variety harvest amounted to 513.49 tonnes, a 211.67-tonne (70.13 %) increase in comparison with the previous year. The highest hop production increase was shown by the Úštěk region, which rose by 382.86 tonnes (69.52 %) to 933.59 tonnes. The harvest of the Žatec semi-early reddish variety amounted to 703.47 tonnes, a 274.64-tonne (64.04 %) increase. The Kazbek variety yielded a 14.13-tonne harvest, 1.02 tonnes (7.78 %) more than in the pre-
Návrší 483 | 664 56 Blučina | Czech Republic Telephone/Fax: +420 547 235 213 nerez@nerezblucina.cz
Nerez_final.indd 1
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material indispensable in the production of good quality beers. Hop cones contain resin substances, hop essential oils and polyphenols. Highest-quality hops are cultivated in the Žatec hop-growing area. This hop variety is called the Žatec semi-early reddish. It is this aromatic hop variety that lends beer its typically bitter taste and aroma and, in addition, increases its value from the point of view of modern medicine and pharmacology, as it has a great impact on human health. For centuries, hops have been used in folk medicine as a herb for the treatment of a number of diseases and health problems. In the form of extract or infusion, hops are used to this day in the treatment of conditions such as insomnia, nervous conditions, anxiety, flatulence and indigestion, in conditions associated with the menopause, prostate problems, intestinal cramps, and poorly healing wounds.
http://www.nerezblucina.cz 24. 6. 2020 9:55:57
31 |
BREWING
CZECH BUSINESS AND TRADE
Czechs Love Beer and They Like Brewing It in Bulk Czech beer is a phenomenon which has brought international fame to the Czech Republic. That Czechs love beer and that they consume most of it in comparison with all other nations are well-known facts, confirmed by various beer statistics. The statistics further reveal that in this country beer is not only widely consumed, but also brewed.
and concerts organised. Beer runs combining exercise with beer drinking are a new form of entertainment. Beer specials have long ceased to be occasions attracting only connoisseurs. They are becoming increasingly popular with regular beer consumers. Non-traditional beers are brewed not only at Christmas or Easter, but are sought after all the year round. Mini-breweries first presented themselves at the traditional Pilsner Fest in 2019. At the beginning, large breweries were not willing to cooperate with them, but in recent years they have changed their minds and are now trying to find a space where they will not be rivals, but can help each other. This is another example of how a previously overlooked segment has become a full-featured sector of the brewing business.
In terms of total output, Czech breweries cannot compare with those in larger countries. In recent years, the Czech Republic has been competing with Belgium for 7th position in Europe. Recent analytical data, however, have shown that in total beer production Czechs are ahead of the rest of Europe. Surprisingly, this success is not due to the largest domestic breweries, but to the large number of medium-size and small ones, of which there are nearly 500 scattered all over the countr y. Today, there is at least one brewery in nearly every Czech town or community, | 32
with two breweries standing in close vicinity of each other being no exception.
n LOOKING BACK AT 2019 An important factor which influenced the entire Czech society in 2019 was the economic boom, a low unemployment rate, and a higher purchasing power of the majority of the population. At the same time, however, the first signs of an imminent crisis could be felt. The number of mini-breweries is continuously increasing. In 2019, there were nearly 50 new such breweries starting production. Apart from purely profit-making projects, the number of smaller breweries is in-
creasing, an indication that small domestic brewing facilities are going over into official business. Often they can be found in cellars or family house extensions. However, the rate at which new small breweries are started is slowing down as the market is becoming increasingly saturated. In addition, the time when any kind of craft beer, with whatever flaw, was sought after and consumed, is over. A number of mini-breweries fell into stagnation and stopped developing. Very often, supranational companies or richer mini-breweries brewing and selling beer as an ordinary business with a high marketing budget, forced them out from the pubs.
Photo: pixabay.com
n DRAFT OR BOTTLED?
At the same time, interest in “beer tourism” continued. More beer trails and new informative guides emerged, and so did brewery maps and smart mobile phone applications. Tourists wander from brewery to brewery to taste local beers. In addition to good beer, small breweries also offer various types of entertainment, such as guided tours, expert tasting, gastronomic events, beer competitions, concerts, and beer baths. An ever-increasing number of tourists also visit large breweries. As a special attraction, open-air cinemas stage performances within brewery premises, and there are exhibitions installed and fairs
Like anywhere else in Europe, in the Czech Republic, too, the consumption of cask beer in proportion to total beer consumption is low. In the first nine months of last year, beer drawn from casks and tanks accounted for 37 % of total domestic consumption. Canned beer wins over PET bottles, with glass continuing to dominate. The canned beer boom forced breweries to make large investments in beer-canning lines. Even small industrial breweries and some larger mini-breweries began filling beer into cans. Cans are popular among people in summer, because they are light and practical and easy to cool. Consumption of beer in mini-casks, however, is declining year on year, but was a hit during the long, hot summer season of 2019. The time of PET bottles in the brewing industry seems to be over and even minibreweries are going over to 0.33- and 0.7-litre glass bottles. A welcome feature in 2019 was tank beer consumption, which increased in the domestic market. The reason is that tank beer reaches the customer from the brewery within the shortest possible time in the maximum fresh condition. Therefore large breweries keep enlarging their conceptual pub networks serving tank beer.
Czech breweries are busy, beer production is growing Year
Output hl thousand
2009
19 843
2010
18 675
2011
18 600
2012
19 144
2013
19 574
2014
19 612
2015
20 091
2016
20 475
2017
20 322
2018
21 272
Source: www.aktualne.cz
Czech mini-breweries Year
Number of mini-breweries
2013
192
2014
236
2015
291
2016
345
2017
395
2018
440
2019
480
In 2019, 2.5 % of overall beer output in the Czech Republic was brewed by mini-breweries (approx. 400 000 hl) Source: www.aktualne.cz
Radlers are experiencing a comeback, mainly in connection with the development of cycling and a healthier lifestyle. Warmer weather also helps their sales. This beer category is no longer exclusively the focus of the largest supranational brewery groups, but is also becoming increasingly popular with smaller breweries, which, moreover, add new tastes and herbs to them. Thousands of Czechs legally brew homemade beer. Last November (2019), Parliament raised the annual output limit to 2 000 litres free of excise duty. Home-brewers hold tasting sessions of their products. Beer cellars are scattered all over the Czech Republic, where their owners, trying to promote the beer culture, hold evening tasting parties, lectures, and other events. 33 |
Oferim diverse servicii, începând cu designul, PR
proiectarea, engineering-ul până la livrarea și
CZECH BUSINESS AND TRADE
montajul circuitelor de răcire, de aer condiționat și de pompe de căldură ”la cheie”.
Czech Women Are Beer Lovers
Bohemiachlad spol. s r.o. is a supplier of complete industrial ammonia cooling and industrial air-conditioning systems and heat pumps, including control systems and automation, as turnkey projects.
Ms Martina Ferencová, Executive Director of the Czech Union of Breweries and Malt Houses, has the gift to narrate, and her stories about beer are most absorbing. In her rendering, brewers are magicians and artists. Czech beer, she says, is a phenomenon unparalleled by any other nation, a fact she is duly proud of. To her, beer is a gem and a part of the cultural heritage, a feature of the lifestyle and an element with the power to enhance sound relationships among people.
The firm can supply new cooling equipment or reconstruct existing apparatus. Owing to the conceptual design of the system, the customer will gain the following advantages: operating energy saving of up to 30 % consumption of up to 60 % less of the cooling medium guaranteed service supervision by active remote control, thus reducing maintenance and service costs fully automated cooling equipment that will eliminate operator errors and protect the installed equipment against potential damage caused by unprofessional handling of the equipment or in case of breakdown Operating Savings and Minimisation of the Volume of Cooling Medium needed In view of the growth of energy prices, the cost of energies used in the operation of cooling equipment will become increasingly important. Therefore we offer the design of cooling equipment to ensure maximum saving of these costs. Our company, with more than a 10-year practice, has checked and tested a new ammonia-based cooling system, which has no parallel in Europe. The technical solution is based on the use of a new system of injecting the coolant into the heat exchanger or other type of installed cooling equipment, where the volume of the coolant is regulated according to | 34
the required cold consumption, which is just the parameters of the engine room very advantageous not only as regards on the spot. lower energy costs incurred by oper- Consequently, the operation of the coolequipment expert Cehă ating the equipment and sincreasing the ing 17, Bohemiachlad spol. r.o. | Možného 161 00 does Prahanot 6 require | Republica knowledge, because the entire cooling intervals between service repairs, but also tel./ fax: +420 274 773 546 | e-mail: info@bohemiachlad.eu and mainly greater operational safety. system is fully automated and a number Thanks to direct coolant injection, a min- of operations, which previously needed imum reserve of NH3 (ammonia) is need- physical attendance, are now performed ed in the cooling circuit while fully meet- by the control system. The attendants, in ing current standards and requirements conjunction with our technicians, only for the minimisation of the coolant supervise the entire system to see whethvolume in comparison with technically er all the steps are performed correctly. This enables the operator of the cooling obsolete equipment. This system comprises the modernisation equipment to combine the workforce. and substitution of technically obsolete In case of breakdown, or incorrect or unand dangerous cooling equipment. The suitable parameter setting, our servicenewly designed cooling equipment, or men immediately have all the required only some of its parts, flexibly responds data at hand. The monitoring system is at to the needs of cool production and con- all times ready to warn about any potensumption and can promptly solve sudden tial shortcomings and to give advice by performance requirements, thus avoiding phone. This makes it possible to eliminate potential idling and financial losses. The most shortcomings without the need to operation of the newly designed equip- call an expert for personal assistance. ment is smooth, without any step chang- All service work (provided the Contract is es, precisely meeting the requirements, signed) is performed automatically and all the important dates are monitored by our firm. so that no losses occur. Further advantages include the provi- All actions, changes, and all entries into the sion of services by our company. If the system are logged, so that both the customer customer signs a Service Contract with and the serviceman have a complete overus for guaranteed service supervision, he view. As part of its service activity, the compareceives the assurance that his cooling ny supplies spare parts and provides a comequipment is regularly monitored and plete warranty and post-warranty service. supervised by our servicemen, who, in More at http://www.bohemiachlad.eu collaboration with the operators, will ad-
Photo: Archives of the Czech Union of Breweries and Malt-Houses
Bohemiachlad, Spol. s r.o., Means Industrial Cooling
Have you visited all the Czech breweries and malt houses during your official engagement in the Union? There are nearly 500 breweries, including the smaller ones, and about 30 malt houses. The number of invitations I receive is beyond my time limits. This is also because my visits are not just formal occasions, with mere beer tasting and discussion with the owner and leaving in an hour or so. Each brewer prides himself not only on his products, but also likes to talk about his people, technologies, spaces, innovations and many other things. And the same applies to the malt houses and hop producers. And I always like to hear everything they tell me, even if I have to spend the whole day there. Brewing technologies are extremely complicated and, in my eyes, Czech brewers are artists and magicians. They must know about the things which take place in advance, before the actual brewing processes, such as tending the plants in the fields, i.e. hops and barley, and the care of their quality, because the quality of input raw materials is of key importance for production. Brewing itself is alchemy, a process during which starches, enzymes, essential oils, yeast and many other substances work together at different temperatures. The phases of production have pleasant names, for example, milling, mashing, straining, hopping, fermenting, maturing. Behind each of these terms is a tremendous lot of work, but it is the skill of
hand, they like to taste new kinds of beer, non-traditional beers, and various new beers and specials. Confirmation of this is the very popular Czech Beer Days festival, which we have been organising, together with other breweries, for 8 years running. It is specifically for this festival that St. Wenceslas Specials, beers that can only be tasted in September, are brewed. The same is true of the mini-brewery boom. These breweries boast non-traditional beers, using non-typical malts and hops made by different technologies, besides classic beers. They have narrower programmes and can experiment more than large breweries. And, last but not least, I must mention the growing interest in flavoured beers and beer-based beverages. Their non-alcoholic variants especially are becoming increasingly popular.
Czech brewers which guarantees that the outcome will be the genuine Czech beer - a gem which has earned us world fame. Was last year a good one for Czech breweries and why? What innovations did they bring to our market? The final figures for 2019 are not yet available. But, according to estimates, we´ll most probably not surmount the 2018 record, as historical limits have fallen. The total beer output was 21.272 million hectolitres, 5.157 million hectolitres of which was exported, most of it to our neighbours in Slovakia and Germany. Our beer imports, on the other hand, were only 395 000 hectolitres. With regard to the kinds of beer, the output was 50.3 % of lagers, 45.2 % of draft beer, and 4.5 % of other beers. Beer consumption, in terms of packaging, was 40 % of bottled beer, 34 % of barrel beer, 12 % PET bottles, 11 % canned beer and 3 % cisterns. The last thing I would like to mention from the statistics is the ratio of 64:36, i.e. the ratio of beer sold in shops vs. beer consumed in pubs. We are definitely not happy about this, because it indicates a diversion from the Czech beer culture phenomenon. Do customers actually want anything new at all? Or do the diehards insist on their 10- or 12-degree beer and are not going to change in any way? The statistics mentioned above show that Czechs are very conservative. On the other
Is the number of mini-breweries still growing and do they have a chance of surviving? The popularity of mini-breweries is growing continuously. An increasing number of new ones keep emerging. In the past, it used be at a rate of one mini-brewery per week. I would have expected this frequency to decrease. This is what I thought some 3 years ago, but this expectation has not proved true. Their existence is the spice of the trade of brewing. They have a different selection from larger breweries and they know how to create loyal customers. These breweries are often to be found in interesting localities. I enjoy travel, and so always try to combine my trips with visits to a brewery and beer tasting. The export of our liquid gold has been on the rise in recent years. Will this trend continue? Czech beer exports have been doing well for quite a long time. Since 2010, beer exports have risen by an amazing 43 %. In 2018, we exported 4.5 % more than in the preceding year, and I am persuaded that 2019 will be no exception and hopefully we´ll set a new record. We export to all countries of the European Union and to 68 countries outside the EU, where the growth rate is faster. Our beer exports go mainly to our nearest neighbours, but our beer is becoming increasingly popular even in more distant destinations, for example, Russia, the Republic of Korea, and the United States of America. The cherry on top was the news that Czech beer has found its way as far as the Antarctica. 35 |
BREWING
CZECH BUSINESS AND TRADE
The Czech Food Chamber What innovations is your Union preparing for this year? What are your members´ plans? This year will be a breakthrough one for our Union. Currently we are preparing a new strategy for the next 5 years, called Future of Czech Beer 2020+. We are well aware that what is changing is not only the market environment and our consumers, but also the political situation. The Union is here to defend the interests of the sector, and therefore we must react to those changes. Pressures are growing for all sorts of regulations and restrictions. Essential legislative changes are facing us, we must ensure the propagation of the Czech beer culture and spread the fame of Czech beer not only at home, but also abroad. We must strive to pass on the skills of Czech brewers to the new generation, inform them about the benefits of brewing, malting
and hop cultivation for the Czech economy, build awareness of the need for a friendly approach to the environment, develop social responsibility projects, and much more. This is what I like about my work. It is multifaceted, inspiring and satisfying. I think I can safely say that my work is a dream come true. What makes beer a unique beverage and what factors make beer brewed in the Czech Republic unique? When I arrive in a foreign country and say I come from the Czech Republic, the reply I usually hear is “I know your beer”. In Dubai, local people even showed me the animal symbolising one of our beers. This alone shows the uniqueness of Czech beer – it is world renowned. We can be deservedly proud of European protection in the form of the Czech Beer Protected Geographical
Indication. The fact that it is really unique is confirmed by the results of the recent survey carried out by the Brewing and Malting Research Institute, which examined Czech and other beers with regard to their chemical composition and sensory properties. It proved unequivocally that Czech beer differs significantly from other beers, especially in the content of bitter substances, higher residual extract, and a higher content of wholesome polyphenols and the number of vitamins. Sensorically, Czech beer is fuller, more bitter, less sour and its general character is that it is highly drinkable. Specifically this means that, after finishing one beer, you immediately feel like having another one, so that “going to have one” is the most widespread myth. The interviewer was Eva Brixi.
World Beer Premiere – or “Cheers to you!”
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Beer drinking can be beneficial to health, but its negative factors usually prevail. On the other hand, its consumption in small quantities, owing to its group B vitamin content, supports the correct function of the metabolism. The question is, what does the term “small quantity” actually mean? Physicians usually mention the daily dose of one small beer for women and one big beer for men. The unexpected symbiosis of a private brewery and the AQM company with a team of Brno microbiologists has resulted in the birth of a new type of foamy drink – beer with the addition of probiotics.
n MILLIONS OF FRIENDLY BACTERIA The team of the company´s Czech biologists have managed to impute probiotic bacteria into the beer, so that every pint of beer may contain at least one hundred million friendly bacteria, with at least one million of them remaining in it until the end of the expiry period. Biologists say that probiotic beer consumption may have a great benefit in that it supports the digestion, thanks to the combination of the beneficial effect of the
different beer components with a living probiotic culture.
n 70 % OF THE IMMUNITY EFFECT
ARISES IN THE INTESTINES
Probiotic beer consumption would be suitable, for example, for diarrhoea or after the termination of antibiotic treatment, to replenish the intestinal microflora. Probiotic beer is more suitable even for ordinary drinking, because it will have a favourable effect on immunity. This is because 70 % of the defence capacity of the organism develops in the intestines. According to its creators, the Czech product is unique worldwide, not only for its favourable effect on human health, but also because the manufacturer is capable of maintaining the probiotic culture in the beverage without it having any effect on the taste of the beer. The development of the technology, which has the ability to stabilise selected probiotic cultures in brewed beer, took two years and, after all the tests have been evaluated, it can be said that the process has been successful.
Photo: CzechTourism, Lukáš Růžek
Research workers in the beverage industry, in collaboration with Brno microbiologists, have brewed the world´s first probiotic beer, which is believed to improve immunity, digestion and psyche. Their partner for the further development of special technologies is the Technical University (VUT) in Brno.
Do you have problems with transport to the places of delivery? At the beginning, there were problems with access to retail storage spaces, where the drivers were required to wear personal safety devices, which were not available. This problem was soon solved. The problem remains in connection with products crossing the border and delays at the frontier. Not all the proclaimed measures to speed up the passage of vehicles carrying food or raw materials across the border (green stripes) work.
The Chamber was founded on 12 July 1995 as the Food Association of the Czech Republic and started operations in the same year. On 7 August 2000 its name was changed to the Czech Food Chamber. In 2002 it was incorporated in Act No. 110/97 Coll. on Food, as amended, as representative of the food industry.
The Czech Food Chamber represents the interests of its members – business entities and professional associations of the Czech food industry and related sectors in relation to Czech state administration bodies, other organisations and institutions and bodies and organisations of the European Union. The Chamber is a service organisation with a high degree of competences in all areas concerning the interests of its members, especially as regards food legislation, trade and industrial policy and its financing, the environment and EU issues. In accordance with Act No. 110/97 on Food, the Chamber represents the interests of all entities of the Czech food industry, irrespective of whether they are its members or not, specifically in relation to Czech state administration bodies, other organisations and institutions and bodies and organisations of the European Union. Apart from this legislative role, it also provides other services and ensures the protection of the interests of its members, i.e. business entities and professional unions of the Czech food industry, other entities whose activities are directly related to the food sector, research institutes and schools, laboratories and accredited companies and entities of directly related sectors, with the exception of entities operating in primary agricultural production and retail trade. The whole world is currently dealing with problems in connection with the COVID-19 viral infection. We therefore addressed representatives of the Food Chamber and asked them several questions. The following are their answers:
How did export problems affect your member firms? Have deliveries to their customers increased or have they been reduced? There has been a decline in exports in connection with the closing of borders and the restrictions concerning the movement of persons, and in particular with the restriction or closure of catering facilities and hotels. We have naturally experienced a decline in tourism and we can sense the fears of people who hesitate to buy imported goods.
Can you see any new opportunities or challenges in this situation? I certainly can. Companies had to learn how to cope in emergency situations, something they had already forgotten. This will be a good experience for them in a potential new crisis, which may soon strike again. E-commerce, a new phenomenon, has experienced a boom, and those who were reluctant to practise it, had to learn how to use it. This phenomenon will stay with us, even after we have returned to normal. Maybe not 100 %, but certainly 50 %. This means that business and marketing behaviour will change. People have tried out online shopping, and have found that it works.
Does the change apply to all territories and all foods? At the moment, it applies to all territories, but to various degrees.
Considering your current experiences, do you envisage any new and lasting measures or changes in your organisation of work or the food range? Probably not in the range, but definitely in the organisation. At least, in business channels.
Have the firms introduced any additional hygienic or organisational measures? Food companies are acquainted with the HACCP recommendations of risk control in practice, which they observe so as to ensure the highest possible level of food safety. In addition, they have adopted a number of measures in the area of additional personal and operational hygiene and especially in work organisation, in accordance with the WHO recommendations of 7 April 2020. This is to minimise personal contact between workers, in order to reduce to the minimum the risks of the virus spreading in the workplace and, consequently, the risk of having to close down. These measures have proved to be fully functional.
How, in your opinion, has the Czech Republic coped with this unique situation in the area of food production and supply? I would say at 150 %. The employees and managers of food enterprises have really done well. They went to work, aware that their businesses might close down; they worked 7 days a week under unbelievable pressure, and they made a success of it. The Ministry of Agriculture, too, managed its role. Despite the confused conditions at the beginning, it ensured a sufficient supply of disinfectants and personal protective equipment for people working in the sector, which it distributed in conjunction with the Food Chamber. This assisted significantly to keep the sector going and to ensure an even supply of food for the population. 37 |
ASSEMBLY – PROFESSIONALITY, QUALITY, SAFETY
Production offer
Works L&W Group s.r.o., established in 2011 is a successfully developing Czech company without foreign ownership participation, specialising in the area of production-assembly works for customers at home and abroad (e.g. Hungary, France, Norway, the UK, the Faroe Islands, Slovenia, Spain, etc.). Its services are used in the food, pharmaceutical, chemical, petrochemical and other industries.
Rodenticides Granules, Pellets Coated grains
Insecticides Fumigant Dust
AGROCHEMA, družstvo 675 02 Studenec 195 CZECH REPUBLIC GPS: N 49.197667°, E 16.066667° Tel.: +420 724 037 218, +420 568 627 026 E-mail: info@agrochema.cz www.agrochema.cz www.agrochema-shop.cz
WWW.KOVOBEL.CZ Poultry equipment We are a traditional Czech producer of POULTRY EQUIMPENT. We provide design, manufacture, supply, installation and servis of technology for poultry.
Demountable storage containers KOVOBEL Do you need to store material, oil substances or goods� We o�er practical folding storage containers KOVOBEL. Their advantage is assembly at a time when the container needs to be moved or not used. KOVOBEL, vyrobni druzstvo, Cihlarska 503, 344 01 Domazlice, Czech Republic Tel.: +420 379 724 441 Fax.: +420 379 722 552 kovobel@kovobel.cz www.kovobel.cz
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The company has acquired new premises, which have been reconstructed with financial assistance from EU funds. The compound comprises 2 000 sq.m of production space, new headquarters and 6 500 sq.m of storage space. On average, 60 – 80 people are employed. The company collaborates with Czech and foreign subcontractors. Apart from its own employees, the company also engages self-employed persons.
The company´s business programme includes: delivery and assembly of investment units, with all the required related works manufacture and assembly of skid units delivery and assembly of piping systems from carbon and stainless steel (especially for the pharmaceutical and food industries) assembly of technological equipment and movement of large-capacity equipment disassembly, production, delivery and assembly of stainless-steel structures, mainly for the food industry
“We do work we like, work that has clearly visible results and work which demands thought.” The company provides quality services. It holds a number of certifications and meets the requirements of e.g. the 2014/68/EU directive module A2 and the WPQR certificate etc. It is needless to emphasise that the strict observance of safety, health and environmental protection rules is a priority in all company activities. Our customers are: Nestlé (CZ), Stock Plzeň (CZ), Saint-Gobain Construction Products CZ (CZ), CS Cabot (CZ), Unipetrol-RPA (CZ), ASC Process Systems Ltd. (GB), ZVU Engineernig a. s. (CZ), Steap Stailor (FR), Izotechnik SP z.o.o. (PL), among others.
www.wlwgroup.cz 39 |
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