Feeding frenzy
When it comes to the post-EU accession industry Olympics, it's safe to say that the meat sector and the apple sector would take the joint gold medal. Both sectors benefited hugely from the opening of borders and the dropping of duties and restrictions. And yes, even countries from the Old EU have been more than happy to gobble up Polish products, with Polish meat exports doubling in the period from May 1 accession to July, and the export of fresh-market apples tripling since the 2002-2003 season.
Meat masters
"EU accession has been very good for the meat industry," says Michał Buczyński, an analyst at Dom Maklerski Millenium, "from the farmers up to the big companies."
And top meat concerns like Sokołów and Duda have shown eye-opening results, with Sokołów enjoying an 82 percent increase in operating profit for the first six months of 2004 compared to 2003, and Duda a whopping 228 percent over last year. And although a multitude of factors contribute to these figures, it's clear that EU accession has helped more than hurt.
Beginning on May 1, duties and restrictions on meat and produce exports dropped out completely, allowing free movement across the borders. The result? As previously mentioned, meat exports doubled in the period from May to July. But another result was an equalization in the prices of meat and livestockwhereas before May 1 the prices in Poland were vastly lower than the prices in the EU, after May 1 Polish meat prices floated up closer to EU levels, with some meats shooting up as much as 30 percent. This was great news for many meat firms and especially the farmers, but Poland's consumers have had to put up with the higher prices.
Another less savory result of EU accession is that meat slaughter and processing plants must fulfill the new EU standards or else face closure. Right now 1,034 facilities have fulfilled the requirements, while 250 have been given a temporary license until 2007 and 170 have just six to 12 months before they have to be in full compliance.
Because of this, "competition has decreased on the market, and bigger producers increased their market shares," says Buczyński.
While zł.1.5 billion was invested in the meat industry last year, this year will see zł.2 billion invested. Market leader Animex, for instance, which exports to the USA, Germany, the UK and Russia and is owned by the American Smithfield Foods, is building two new plants and taking over the popular Morliny sausage brand this year.
"Compared to the same quarter in 2003, exports grew 30 percent this year for Animex," says Lidia Zalewska, PR manager for Animex. The only problem of late, however, has been Russia.
"Only 19 of 75 plants got the certificates that allow them to ship their product to Russia," says Zalewska. Animex didnt get one, despite the fact that they already had full approval from the EU, while many of the firms that got Russian approval never got EU approval. She hints that corruption had a hand in this.
Russian exports made up 10-15 percent of Animex's exports until this happened, says Zalewska. But despite this setback, once Animex takes over Morliny, a deal they hope to complete by the close of the year, the meat giant will swallow up another 2-3 percent market share to add to their current market share of around 7-8 percent (as a percentage of the total domestic market).
According to Buczyński, the future holds mostly good things for the meat industry. He notes that the meat trade surplus (exports minus imports) has increased this year, and that "meat production should increase in Poland because higher prices mean higher margins, and they will try to produce more."
An apple a day...
They say 'an apple a day keeps the doctor away.' And now it seems Europe's medical profession may have cause for concern. With the dropping of duties and restrictions that came with EU accession, Polands apple exports have boosted triumphantly, with exports of fresh-market apples having tripled this season compared to the 2002-2003 season.
In the first half of this year, the Balkan states bought as many apples from Poland as they did during the whole of last year. And countries farther West are chomping into Polish apples as well.
"We are exporting more and more to the Old EU," says Zbigniew Przybyszewski, president of SUN-SAD, a major Polish apple exporter. In fact, his firm recently began exporting to France for the first time. SUN-SAD already sends 30 percent of their export product to Germany, so a jump over the Rhine seemed like a natural step for SUN-SAD.
But since the apple season starts in autumn and ends in mid-summer, the real effects of EU accession won't be felt until this coming seasonlikely to be the most anxiously watched apple season in Polish history.
Where Poland's real apple power lies, however, is not in the fresh-market fruits, where it is currently Europe's third biggest exporter (behind France and Italy), but rather in the concentrate variety.
Poland is the largest apple concentrate supplier in Europe, with 237.5 tons exported last season. Apple juice concentrate from Poland is well-regarded worldwide for its high acidity.
The main buyers of Polish apples, both fresh-market and concentrate, are Russia, the Czech Republic, Slovakia, Romania, Serbia and Croatia. But that could change.
"The Old EU is the best market for us, but was earlier a securely closed system," says Jan Swietlik, head of the Horticultural Economics Department at the Institute of Agricultural and Food Economics, who is understandably excited about Poland's apple export potential.
"Opening the market for apples came at the right moment. We have potential, the only thing we should do is make good use of it." And as Swietlik stresses again and again, now is the time to do some serious apple business.
Meat masters
"EU accession has been very good for the meat industry," says Michał Buczyński, an analyst at Dom Maklerski Millenium, "from the farmers up to the big companies."
And top meat concerns like Sokołów and Duda have shown eye-opening results, with Sokołów enjoying an 82 percent increase in operating profit for the first six months of 2004 compared to 2003, and Duda a whopping 228 percent over last year. And although a multitude of factors contribute to these figures, it's clear that EU accession has helped more than hurt.
Beginning on May 1, duties and restrictions on meat and produce exports dropped out completely, allowing free movement across the borders. The result? As previously mentioned, meat exports doubled in the period from May to July. But another result was an equalization in the prices of meat and livestockwhereas before May 1 the prices in Poland were vastly lower than the prices in the EU, after May 1 Polish meat prices floated up closer to EU levels, with some meats shooting up as much as 30 percent. This was great news for many meat firms and especially the farmers, but Poland's consumers have had to put up with the higher prices.
Another less savory result of EU accession is that meat slaughter and processing plants must fulfill the new EU standards or else face closure. Right now 1,034 facilities have fulfilled the requirements, while 250 have been given a temporary license until 2007 and 170 have just six to 12 months before they have to be in full compliance.
Because of this, "competition has decreased on the market, and bigger producers increased their market shares," says Buczyński.
While zł.1.5 billion was invested in the meat industry last year, this year will see zł.2 billion invested. Market leader Animex, for instance, which exports to the USA, Germany, the UK and Russia and is owned by the American Smithfield Foods, is building two new plants and taking over the popular Morliny sausage brand this year.
"Compared to the same quarter in 2003, exports grew 30 percent this year for Animex," says Lidia Zalewska, PR manager for Animex. The only problem of late, however, has been Russia.
"Only 19 of 75 plants got the certificates that allow them to ship their product to Russia," says Zalewska. Animex didnt get one, despite the fact that they already had full approval from the EU, while many of the firms that got Russian approval never got EU approval. She hints that corruption had a hand in this.
Russian exports made up 10-15 percent of Animex's exports until this happened, says Zalewska. But despite this setback, once Animex takes over Morliny, a deal they hope to complete by the close of the year, the meat giant will swallow up another 2-3 percent market share to add to their current market share of around 7-8 percent (as a percentage of the total domestic market).
According to Buczyński, the future holds mostly good things for the meat industry. He notes that the meat trade surplus (exports minus imports) has increased this year, and that "meat production should increase in Poland because higher prices mean higher margins, and they will try to produce more."
An apple a day...
They say 'an apple a day keeps the doctor away.' And now it seems Europe's medical profession may have cause for concern. With the dropping of duties and restrictions that came with EU accession, Polands apple exports have boosted triumphantly, with exports of fresh-market apples having tripled this season compared to the 2002-2003 season.
In the first half of this year, the Balkan states bought as many apples from Poland as they did during the whole of last year. And countries farther West are chomping into Polish apples as well.
"We are exporting more and more to the Old EU," says Zbigniew Przybyszewski, president of SUN-SAD, a major Polish apple exporter. In fact, his firm recently began exporting to France for the first time. SUN-SAD already sends 30 percent of their export product to Germany, so a jump over the Rhine seemed like a natural step for SUN-SAD.
But since the apple season starts in autumn and ends in mid-summer, the real effects of EU accession won't be felt until this coming seasonlikely to be the most anxiously watched apple season in Polish history.
Where Poland's real apple power lies, however, is not in the fresh-market fruits, where it is currently Europe's third biggest exporter (behind France and Italy), but rather in the concentrate variety.
Poland is the largest apple concentrate supplier in Europe, with 237.5 tons exported last season. Apple juice concentrate from Poland is well-regarded worldwide for its high acidity.
The main buyers of Polish apples, both fresh-market and concentrate, are Russia, the Czech Republic, Slovakia, Romania, Serbia and Croatia. But that could change.
"The Old EU is the best market for us, but was earlier a securely closed system," says Jan Swietlik, head of the Horticultural Economics Department at the Institute of Agricultural and Food Economics, who is understandably excited about Poland's apple export potential.
"Opening the market for apples came at the right moment. We have potential, the only thing we should do is make good use of it." And as Swietlik stresses again and again, now is the time to do some serious apple business.
