Forecasts from the Polish horti sector

The horticultural sector in Poland is facing difficulties due to the Corona crisis. In their struggle with the market they identified several important fields and are starting to look ahead.

bloeiende rosen met de stad in de achtergrond

Big client- the government

Polish municipalities remain an important customer for the producers of ornamental plants. Considering current situation producers hope that the orders for the government will help them survive the situation. However some officials have already closed green procurement due to the fact that they are afraid of getting less / no money for maintenance of new investments next year.

Euro biljetten

Finances

Despite Polish farmers are allowed to work in the field and are ordering all the necessary goods fairly normally, there is a certain concern among the companies that due to the market situation with corona virus they would not be able to pay their invoices in time what might cause problems with financial liquidity at the companies. Concerns with regard to exchange rate eur / pln are another obstacle that could harm the development of the companies in case raw materials, propagations materials or supplies are being bought in the EU but the final product is sold on the Polish market. Prices of propagating material supplied from the Netherlands has also become more expensive and therefore less accessible to Polish companies. The third problem are bigger clients like retail chains who are cancelling or postponing their orders and leaving the producer with flowers or plants but without payment.

Transport of goods

Transport of goods at the internal borders of Poland (Germany, Czechia, Slovakia) is going well at the moment. Companies are also not really afraid of a lock down in Poland, because sales can largely also be done by telephone or online. At the moment all major transport companies work normally.

Online shopping

E-commerce

Online selling or at least advertisement is booming in Poland. All companies that have their own online sales channels record a significant increase in sales (between 30-50%!). There is however no possibility this income will fully compensate losses in other areas. Even companies that operated directly only, are switching quickly and advertising their own services online. E-commerce is definitely seen as a new source of income by Polish companies. This sales channel will certainly be further developed by the sector.

LAN-WAR: own report- AM