Poland: agricultural news week 7, 2021
In our latest agrinews read about positive export of Polish agri products, lacking eggs on the Polish market and danger of flooding in Poland. You won't however visit Agrotech in Kielce this year and probably will have problem to eat in your favorite restaurant in Poland, as they are in serious trouble. Enjoy your reading!
Rising egg prices on the Polish market
At the beginning of February 2021 a sharp increase of egg prices was noticed in packaging companies by approx. 18-20%. The pressure to increase wholesale egg prices is due to bird losses in Europe and Asia caused by the bird flu. The National Chamber of Poultry and Feed Producers estimates that only in Poland more than two million birds have been killed due to HPAI infection. The low production base with which Polish and European poultry farming has entered the current season of bird flu has a large impact on the current situation on the market.
Marekt transformation and demand for Easter
Other reason are structural changes related to the transformation of the market towards alternative rearing (e.g. free range), forced by several retail chains like Lidl or lately Kaufland, as well as due to the caution caused by the COVID-19 pandemic. Last year Polish producers ordered significantly fewer chicks than in previous years and the cumulative annual number of young birds was 12% lower than in the previous year, reports the Chamber.
The forecast for the industry shows the trend of limited supply and increased demand will continue. This is to be related to with Easter, which traditionally results in greater consumer interest in eggs. Another reason for the upward pressure on egg prices are feed prices, which are the highest cost of poultry production, remaining at very high levels.
Poland is the sixth largest producer of eggs in the European Union with an annual production of about 648 thousand. Tons of which over 30% goes abroad, mainly on the EU market.
Export of Polish agri food products increased
In 2020, Poland obtained an unprecedented level of receipts from the export of agri-food products - EUR 34 billion, EUR 2 billion more than in the previous year. The increase in exports was influenced, among others, by favorable exchange rate of the zloty against the euro and the dollar, which favored competitiveness on the international market.
According to the data of the Analyzes and Strategy department of KOWR (National Center for Agricultural Support) last year's food imports amounted to EUR 22.3 billion and was 4.9% higher than in 2019. As a result, the positive trade balance increased by 11.4%, reaching EUR 11.7 billion.
EU and the third countries
The main trading partners of Poland are still the EU countries. In 2020, the value of Polish agri-food exports to the EU market increased by 5% to EUR 27.2 billion, and exports account for 80% of total revenue from food exports. Poland is increasingly exporting its goods outside the EU: in 2020, the value of Polish agri-food exports to third countries increased by 17% to EUR 6.8 billion.
The threat of flooding in Poland
The winter of 2021 brought a lot of snowfall in Poland. The long-lasting, round-the-clock frost also helped. Therefore, there is a lot of snow in Poland.
Since the thaw has been going on in western Poland for several days, there is hardly any snow left at the western ends. However, in the east of Poland, in the last few days, snow even increased. There is still up to 30 cm of snow cover on the eastern part of Poland. There are huge heaps of snow in cities, taken from roads, pavements and parking lots. Due to such a large amount of snow, the risk of flooding in Poland is high.
In connection with the situation over the country, experts from the IMGW(National Meteorological Institute) say that the current weather situation in Poland significantly resembles the situation of 1982, which resulted in a huge flood in Poland. Just like almost 40 years ago, after a few weeks of frost and heavy snowfall, a strong thaw has come to the country. The snow melting very quickly led to a very serious flood.
The temperatures in the east of the country will also be positive this weekend. While in the west the thermometer show over 10 degrees Celsius, in the east there will be 4-5 degrees Celsius.
It will get warmer with each day of the coming week. The temperature in Poland will increase every day to reach even 17-19 degrees the coming Thursday. Due to such a rapid warming, the melts in Poland will be really intense.
Problems on the rivers
Another problem that may lead to a serious, widespread flooding in Poland are ice jams on the rivers. Since the frost lasted for weeks, the ice cover on the rivers is very thick. Cracking ice builds up causing rivers to become clogged. Such blockage of large watercourses undoubtedly raises the risk that we are at risk of flooding in Poland.
Dramtic condition of Polish restaurants
According to the Polish Gastronomy Chamber of Commerce (IGGP), up to PLN 30 billion could evaporate from the catering sector in 2020. Considering that in 2019 the value of gastronomy was estimated at PLN 36.6 billion, this is a real pogrom. IGGP estimates that after removing restrictions on restaurant operation, every fifth may not open in the spring - so the liquidation will be around 15,000. premises. The change in the work model also means huge layoffs, a job in a sector employing about a million people may lose up to 250,000 people. People.
Take-out orders only account for 5-10% of the daily standard turnover. The exceptions are chain restaurants, fast food restaurants, sushi and pizzerias, which are the best at serving take-away meals. IGGP reports that, unfortunately, only 20% of premises try to reduce losses by organizing deliveries and take-away options. However, the effects of the imposed restrictions are absolute - about 90 percent. the catering market has lost financial liquidity or is on its border.
AGROTECH Kielce fair postponed
The Covid-19 pandemic brings unstable situation on the market and the meetings are still suspended, therefore this year the AGROTECH fair in Kielce that was planned for 12-14 March is postponed. AGROTECH fair in Kielce is the largest indoor exhibition of agricultural techniques and technologies with 75000 visitors in 2019 with companies from 21 foreign countries. The organizers declare to keep working on the preparation with the hope to see the expo-industry restart because nothing can replace direct meetings which build and enhance trust in business.
Source: Agrotech Kielce