The EU's great provider
The first 8 months of 2004 have seen 2.1 billion worth of food exported, giving a record 500 million surplus with the EU as a whole, according to the latest reports from the Ministry of Agriculture. Poland now records agricultural trade surpluses with every EU member except Spain.
"We have advantages in certain sectors-in particular low-cost, labor intensive products, such as certain soft fruits that have to be hand-picked," says Waldemar Guba, director of the Department of the Common Organization of Agricultural Markets, a part of the Ministry of Agriculture.
But the two big tickets are most assuredly meat and dairy, long the staples of Poland's farming sector. Already this year, 196 million worth of milk products and eggs have gone to the 15 "old" EU members, which is nearly four times as much as in the same period last year. And already this year 200 million worth of meat has shipped out to the "old EU" compared to 134 million in the whole of last year.
A closer look at the figures shows that Germany remains the largest buyer of Polish grub, having imported some 730 by the end of August this year, 350 million more than Poland imported from Germany.
Yet these trends aren't limited to the EU. Exports to Russia and the Commonwealth of Independent States have gone up 24 percent from May to August, with a surplus since the beginning of the year of 367 million.
Although Poland is fast becoming one of the leading food producers on the continent, France still holds the lead. Yet trade with France is almost balanced this year, as they bought more than 50 percent more agricultural products from Poland than in 2003. The deficit with Spain, meanwhile, can be explained by the fact that Spain supplies Poland with much of its citrus and tropical fruits.
It may come as no surprise that most of the surpluses came in the four-month period following May 1 accession, as the removal of duties and border controls allowed a free flow that seems to have done nothing but help Polish farmers.
"Poland should become a stable net exporter of food in the enlarged EU," says Guba. But some would go further.
"The thing I see is that there are bigger markets than Poland understands," says Gary Granai, director of the Poland Import Export Chamber of Commerce.
Granai says many Polish companies don't respond to international demands for Polish products, agricultural or otherwise. "Some say they're too busy and don't want to bother with exporting," he says.
Granai cites one example in particular: "I had somebody from the UK who wanted to buy truckloads of meat, and the company in Poznań refused to take the order."
On the other hand, Polish food exporters are reaching new Europeans previously not heard from, like Portugal, whose Polish imports shot up 300 percent, or Cyprus with 260 percent more, and Ireland up 210 percent from last year.
And although the inexpensive price tags on Polish foods must be noted as a major factor, it's also the purity of the product that plays a role.
"Production methods in Poland have a low intensity of chemical use," says Guba. "I think many Western consumers have greater expectations when it comes to environmental and production methods." He emphasizes that, unlike most Poles, Western European consumers are more likely to look at factors other than just price.
Guba says the EU's Common Agricultural Policy (CAP) will allow for each country's competitive advantages to emerge. Fortunately, it appears Poland has more than a few.
"We have advantages in certain sectors-in particular low-cost, labor intensive products, such as certain soft fruits that have to be hand-picked," says Waldemar Guba, director of the Department of the Common Organization of Agricultural Markets, a part of the Ministry of Agriculture.
But the two big tickets are most assuredly meat and dairy, long the staples of Poland's farming sector. Already this year, 196 million worth of milk products and eggs have gone to the 15 "old" EU members, which is nearly four times as much as in the same period last year. And already this year 200 million worth of meat has shipped out to the "old EU" compared to 134 million in the whole of last year.
A closer look at the figures shows that Germany remains the largest buyer of Polish grub, having imported some 730 by the end of August this year, 350 million more than Poland imported from Germany.
Yet these trends aren't limited to the EU. Exports to Russia and the Commonwealth of Independent States have gone up 24 percent from May to August, with a surplus since the beginning of the year of 367 million.
Although Poland is fast becoming one of the leading food producers on the continent, France still holds the lead. Yet trade with France is almost balanced this year, as they bought more than 50 percent more agricultural products from Poland than in 2003. The deficit with Spain, meanwhile, can be explained by the fact that Spain supplies Poland with much of its citrus and tropical fruits.
It may come as no surprise that most of the surpluses came in the four-month period following May 1 accession, as the removal of duties and border controls allowed a free flow that seems to have done nothing but help Polish farmers.
"Poland should become a stable net exporter of food in the enlarged EU," says Guba. But some would go further.
"The thing I see is that there are bigger markets than Poland understands," says Gary Granai, director of the Poland Import Export Chamber of Commerce.
Granai says many Polish companies don't respond to international demands for Polish products, agricultural or otherwise. "Some say they're too busy and don't want to bother with exporting," he says.
Granai cites one example in particular: "I had somebody from the UK who wanted to buy truckloads of meat, and the company in Poznań refused to take the order."
On the other hand, Polish food exporters are reaching new Europeans previously not heard from, like Portugal, whose Polish imports shot up 300 percent, or Cyprus with 260 percent more, and Ireland up 210 percent from last year.
And although the inexpensive price tags on Polish foods must be noted as a major factor, it's also the purity of the product that plays a role.
"Production methods in Poland have a low intensity of chemical use," says Guba. "I think many Western consumers have greater expectations when it comes to environmental and production methods." He emphasizes that, unlike most Poles, Western European consumers are more likely to look at factors other than just price.
Guba says the EU's Common Agricultural Policy (CAP) will allow for each country's competitive advantages to emerge. Fortunately, it appears Poland has more than a few.
