Polish food producers fuel increase in domestic demand, exports in 2016 – report

Polish food production has an increased share of the country’s overall gross domestic product – now accounting for 6 percent of GDP – and has also increased exports in 2016, the credit and management consultancy Atradius said in a recently-released report. The report stated that domestic sales of Polish-produced food had increased by 3.4 percent, y/y, with exports expected to be up 6 percent by the end of 2016. “This is a good result compared to other countries. For comparison – the Italians expect an increase in the value of their food market, at the end of 2016, of 0.8 percent, in Portugal, the projected growth is 0.3 percent, and in Spain, 1.1 percent,” the report read. However, the report noted some challenges. For example, pork production had decreased in 2016 because of lower prices, lower profitability and the [continued] Russian trade embargo, and that payment delays and insolvencies had increased in the meat sector.  The number of days taken for payments was said to average 45. Furthermore, it stated that many small businesses in the food retail sector had failed in 2016 due to fierce competition and low margins. Nevertheless, the report was optimistic regarding the upcoming year. It said that in 2017,  growth in the sector by more than 3 percent was expected.