Food sector in Poland
The advantage of the Polish food industry is certainly the fact that it is largely based on domestic raw materials provided by local farmers.
Agricultural markets are feeling the impact of COVID-19 on commodity prices. One of the main factors influencing prices are the restrictions on international trade, as well as restrictions on the activities of establishments in the HoReCa sector. The existing restrictions have a negative impact on the condition of the industry, as Poland is a significant exporter of agri-food products. The new reality also prompted farmers to establish direct contacts with the recipients of their products, which often led to a shortening of the commercial chain.
Distributors
have also been hit by the effects of the virus. They were forced to quickly upgrade their distribution channels and increase their capacity. The current difficulties that have a negative impact on the food industry, however, are starting to extend to other factors, such as Brexit. The prices associated with those changes increased will affect distributors and might result in a loss of liquidity. The financial problems of recipients encourage producers to shorten their trade credits. Enterprises are not helped by sanitary orders.
The food sector
is one of the few industries that has not experienced major negative effects due to the current pandemic. At the same time, many enterprises face liquidity imbalances. Many of them were plunged by problems with export sales, which accounted for a key share of their total sales. Due to restrictions in international trade, the domestic market developed and many local producers increased their share in the Polish market.