Poland, brief agricultural news week 48, 2019
What happened in Poland last week? A brief overview of agricultural news.
Spar group wants to open 400 stores in Poland
Multinational food retail company Spar Group wants to build a chain of 400 stores in Poland within the next five years, the company has announced in a press release.
The Spar Group has recently completed the acquisition of a majority stake in the Polish Piotr i Pawel supermarket chain. The final agreement was signed on October 1 and now over the next few months the stores are to be rebranded as Spar. The company also plans to build a new distribution centre in Poland which is to help expand existing Piotr i Pawel's logistic potential, including its two storage centres in Poznan and Warsaw.
Poles buying more alcohol, especially of luxury brands
According to market analysis firm Nielsen, Poles spend 6,1% more on alcohol and more often chose luxury brands last year than they did before. The sales of “better” alcoholic drinks such as whisky and gin increased and Poles showed more of a preference for luxury brands. For example, Poles would rather buy a craft beer instead of a mass-produced lager. Also, sales of premium-class vodka went up.
The polish daily Rzeczpospolita wrote: “alcoholic drinks, especially the more expensive ones, are gaining from the good economic situation of households.”. Data shows that over a 12 month period, until the end of September, alcohol sales in Poland reached a total of 36,2 billion PLN or 8,44 billion euros, which is 6,1% more than the year before.
As mentioned in an earlier post, a possible excise on alcohol might increase prices with 10%. Together with higher wages and energy costs, this is expected to cause a higher price for alcoholic beverages in the new year.
More expencive food with lower costs of agricultural products
The average procurement prices of most basic plant and animal agricultural products in Poland were below last year's level; only the prices of live pigs and potatoes increased - announced the Polish Central Statistical Office.
With increased supplies of triticale (by 30.5%) and rye (by 24.6%) and reduced - wheat (by 2.7%), purchase of basic cereals in the period July-October 2019 was 4.1% higher than a year ago.
In October 2019 both in procurement and market, the downward trend in prices of basic cereal in relation to the previous month continued (with the exception of procurement prices for wheat). Grain procurement prices were lower, and on the market still higher than a year ago.
Procurement purchase of potatoes was 30.9% higher than in September 2019, but 11.9% lower than last year. In both procurement and market, this product was paid less than a month ago, but still much more than a year ago.
With a high supply of live pigs, the purchase prices of this product in October 2019 fell on a monthly basis; also on the market pork prices were lower than last month. In both procurement and market, live pig prices were still clearly higher than a year ago. With a simultaneous fall in market prices of live pigs and rye prices, profitability of pig fattening in October remained at the same level as a month ago (the price ratio was 8.2 against 6.2 a year before).
With the continuing high domestic supply of poultry for slaughter, the prices of slaughter poultry in purchasing fell again monthly (by 2.6%) and were lower than a year ago (by 0.2%).
Average procurement prices of live cattle and young cattle for slaughter in October were similar to those recorded in September, but lower than a year ago. Market prices of beef were below the level of the month before and the year before.
From the beginning of this year milk purchase was higher by 2.1% than a year ago; on average, 0.8% more was paid for this raw material than in the last ten months of last year. In October milk procurement prices were 1.3% higher than in September and 3.1% lower than in October last year.
Lower procurement prices did not prevent the increase in food prices - both compared to the previous month and compared to prices a year ago.
In details, in October 2019, food prices as well as prices of non-alcoholic beverages were higher than last month (0.3% each). Increase was noted in prices of fruit (by 1.1%), macaroni and pasta products (by 0.7%), bread (by 0.6%) and flour (by 0.3%). The prices of items in the "milk, cheese and eggs" group were on average 0.3% higher than in September 2019 (including yogurt prices - by 0.6%, eggs - by 0.5%, cheese and curd - by 0.4% and cream - by 0.3%; while milk was cheaper - by 0.2%) . In comparison to the last month also it was more paid for fish and seafood (by 0.3%), meat (on average by 0.2%, including sausages were more expensive by 1.1%, with lower prices of meat: poultry - by 1.6 %, beef - by 0.5% and pork - by 0.1%). Rice (0.2%) and sugar (0.1%) prices also increased. Vegetable prices have not changed. While consumers paid less than in September for oils and fats (on average by 0.2%, including butter cheaper by 0.1%).
In contrast to last year's prices, the Central Statistical Office calculated the price increase for food and non-alcoholic beverages at 6.1%, while food prices increased by 6.5%, and non-alcoholic beverages by 2.1%. Much more than a year ago it was paid for sugar (by 22.6%), vegetables (by 16.3%) and fruit (by 12.5%). The price of meat also increased (on average by 8.0%, including pork - by 14.1%, sausages - by 8.7%, poultry - by 1.2% and beef - by 0.1%). The same concerns flour (by 7.8%), bread (by 7.2%), rice (by 6.7%), fish and seafood (by 4.5%), macaroni and pasta products (by 3, 6%) and cereal and cereal grains (by 3.5%). More should also be paid for items in the "milk, cheese and eggs" group (on average by 0.8%, including yogurt prices - by 3.4%, cream - by 1.9%, cheese and cottage cheese - by 1, 5% and milk by 0.2%, with egg prices falling by 4.9%). However, also the fall in food prices was noted in certain groups, as compared to last year. Among others, prices of oil and fat prices were lower (on average 4.7%, including butter was 9.4% cheaper).