Meat prices begin to soar out of control

Meat processing companies have been hit by the appreciating złoty and by soaring prices of Polish beef livestock, which are now higher than the EU average and much higher than in the UK. As a result, Animex for example, was forced to reduce the margin on its flagship Krakus ham in the US to almost zero. Already in 2007, Poland's beef imports exceeded exports. Moreover, livestock prices are set to rise sharply again in August when Poland bans GMO feeds. "This law is a major threat to our company and to the entire national meat industry as it will push up the prices of Polish meat dramatically and further damage our competitiveness vis-a-vis other countries, which do not have similar bans," says Dariusz Nowakowski, CEO of Animex Group, adding: "As a result imports will grow even more. "Agriculture Minister Marek Sawicki vowed to scrap the law but time is running out for the Sejm to approve the relevant amendment. Meanwhile, experts point to another reason behind the high cost of livestock: the Polish meat industry is overly fragmented. The current crisis could thus precipitate a much-needed consolidation in the sector, of the kind that transformed the Danish meat sector over the past 30 years, making it a major player globally. (Puls Biznesu, p. 1, 4-5) R.M.