Will the Mercosur agreement destroy Polish agriculture? Here are the real losses

According to estimates, Polish farms, including poultry houses and barns, could lose as much as 130,000 PLN annually as a result of the unfavorable EU-Mercosur agreement, which opens the market to cheaper food not covered by EU standards. This amount is not just a pure theoretical forecast. It results from a direct calculation of lost benefits, a decline in purchase prices, and the necessity of competing against rivals who do not bear the costs of adapting to the Community's rigorous climate and animal welfare policies.

Economic effects of the EU-Mercosur agreement on Polish farms

The threat to the financial stability of Polish agricultural producers has its source in the asymmetry of production costs. Materials published in January 2026 by Polskie Radio 24 indicate that Polish poultry houses and barns will find themselves in the direct line of fire from competition with giant latifundia from South America. The financial mechanism of this loss is simple, though brutal. A producer from Brazil or Argentina does not have to comply with EU limits on pesticide use, restrictions on the use of nitrogen fertilizers, or restrictive animal welfare standards, which have been driving up operating costs in Poland for years.

When a product that is several dozen percent cheaper to produce hits the common market, the local farmer loses the ability to dictate prices. In the beef and poultry sectors, margins are currently so low that any drop in purchase prices of even a few percent directly translates into a liquidity deficit. If a Polish poultry farmer has to invest in ventilation and heating systems compliant with EU directives, while their overseas competitor benefits from cheaper energy and a lack of environmental requirements, Polish production ceases to be profitable.

Reports cited by Forsal.pl in June 2025 emphasized that the threat does not only concern large enterprises, but above all family farms. In their case, 130,000 PLN is a sum that often determines the survival of the entire operation on an annual basis. It is an amount that covers the costs of feed, infrastructure modernization, or energy bills. When the market is flooded with cheap food, the farmer is forced to sell below the cost of production, which leads to rapid debt and, consequently, to the phasing out of production. Poland called for changes to the agreement's provisions as early as December 2024, as confirmed by Trade.gov.pl announcements, but efforts to date have not brought a breakthrough that could close this deficit-ridden chapter in trade relations.

EU regulations and new technologies in agriculture

The modern Polish farm is trapped. On one hand, Brussels imposes ambitious environmental goals, while on the other, it opens borders to goods that completely ignore these goals. Technological adaptation, necessary for survival in a changing climate, as reported by Newseria Biznes in April 2024, requires enormous capital expenditure. Farmers are encouraged to implement precision farming systems, modern machinery, or innovative water resource management methods. However, the cost of these technologies is gigantic. At a time when margins are being drained by imports from Mercosur countries, investments become impossible for most producers to bear.

The European Parliament's decision of April 30, 2024, regarding new GMO regulations constitutes another flashpoint. Although it is theoretically supposed to increase crop yields, in practice, it introduces new certification and legal barriers for European growers. The farmer must demonstrate compliance with the new regulations, which generates additional administrative and audit costs. Meanwhile, food imported from South America, often produced using genetically modified varieties whose legal status in the EU is complicated, enters the market in a much less formalized way.

This imbalance makes innovation in Polish agriculture a burden rather than an opportunity. Instead of building a competitive advantage, the Polish farmer is only building a costly compliance infrastructure that does not translate into a higher final product price. The market does not pay for meeting standards; the market pays for the price on the shelf. In a clash with cheap production from Mercosur, quality and European standards lose out to pure import accounting.

Double standards: EU norms vs. imports from third countries

The main problem in relations with Mercosur is the systemic hypocrisy in the Union's trade policy. European producers are obliged to comply with directives that are pushed to the limit from the perspective of environmental protection. Every kilogram of fertilizer must be recorded, and every animal must have appropriate living space. The costs of these requirements are included in the price of every liter of milk or kilogram of meat. Products from South America, often produced on deforested land and using plant protection products banned in Europe, become a dumping tool.

An analysis by Money.pl from January 9, 2026, sheds light on the motivations of the member states that pushed hardest for this agreement. It turns out that agriculture was only a bargaining chip in this arrangement. Countries such as Germany or France, possessing strong automotive, machinery, and chemical industries, saw the Mercosur agreement as an opportunity to gain new markets for their industrial products. Farmers from Poland, who do not have such an extensive industrial base, were sacrificed on the altar of big capital interests.

This phenomenon is often called "exporting norms." The European Union demands standards from its citizens but is unable to enforce them from external contractors. As a result, the Polish producer becomes a victim of their own legal system. They must pay for environmental cleanliness, while the consumer in the store chooses cheaper meat, unaware that its price is the result of environmental degradation in another corner of the globe. It is a dead-end situation where market fairness is replaced by pure geopolitics.

The future of European agriculture in the face of political pressure

Tensions in the agricultural sector reached a level that forced policymakers to reflect seriously in February 2026. The protests that swept through Europe were not just an expression of temporary dissatisfaction. It was a cry of despair from an industry that feels cheated by politicians promising a "green future" while actually opening borders to unfair competition.

This situation forces a redefinition of the role of the Polish farmer. They are no longer just a food supplier, but a hostage to legislation that cannot keep up with global economic processes. If the Mercosur agreement enters into force in its entirety, Polish agriculture will have to undergo drastic consolidation. Smaller farms, unable to absorb losses of 130,000 PLN per year, will disappear from the map, which will lead to land being taken over by large agricultural corporations, which will be the only ones able to compete through scale of production, rather than quality or standards.

Food security is also at stake. Dependence on imports from distant regions of the world is risky in the face of political or climate instability. Brussels, by promoting global supply chains, is weakening its own production base. Politicians must finally understand that agriculture is not just an ordinary sector of the economy that can be freely moved between continents. It is the foundation of social and national stability. If it is destroyed by an unequal trade agreement, the consequences will be felt by every citizen – in the form of higher food prices in the future, when dependence on imports becomes total and local producers cease to exist.

What this means for you

As a consumer, you gain a temporarily cheaper product on the shelf, but you pay for it with the loss of food security and the quality that EU standards were supposed to protect. The catch is that the price difference does not result from efficiency, but from environmental and social costs that have been shifted to farmers in other countries or will be paid in the future by the natural environment. The Polish farmer loses liquidity, and the market becomes susceptible to price fluctuations from third countries.

Questions and answers

Why is the Mercosur agreement so criticized by the agricultural industry?

The main reason is the asymmetry of requirements. European farmers must meet restrictive environmental and animal welfare standards, which significantly increases production costs. Imports from Mercosur countries take place without such burdens, which makes them artificially cheaper and disrupts competitiveness on the EU internal market.

What new GMO regulations have been introduced in the Union?

In April 2024, the European Parliament adopted regulations regarding genetically modified organisms, which changes the rules of the game in European crop production. This decision raises controversies regarding farmer independence and food security, while simultaneously introducing additional certification requirements.

Is the Polish government trying to block these changes?

Yes, Poland has officially appealed for a revision of the shape of the EU-Mercosur agreement. The government points to real threats to the domestic agricultural sector, arguing that opening the market under current rules will hit the profitability of thousands of Polish family farms.

What exactly does the 130,000 PLN annual loss figure result from?

These calculations are based on estimates regarding the decline in purchase prices for meat products (beef, poultry) and the necessity of covering high costs of maintaining EU standards while lacking protection against cheaper imports. This amount reflects lost margins and rising operating costs that make running a medium-sized poultry house or barn economically unviable.

Which sectors in Poland will feel the effects of the agreement the most?

The animal production sectors are most at risk, in particular beef and poultry production. These are the departments where the costs of animal welfare and environmental standards are the highest, which makes them the most sensitive to competition from Mercosur countries, where these regulations practically do not exist or are significantly milder.