Agri-food exports – how can we not waste possible and keep competitiveness?

kongresobywatelski.pl 8 months ago

In the 2000s. Poland's function in planet trade has increased significantly. In 2023 Poland was the 22nd largest export in the world. Compared to 2001, our country was promoted by 10 seats. Thus, in terms of export volumes, we have surpassed Brazil, Saudi Arabia and Turkey. In the import in 2023, we were the 20th largest client of goods in the world. Since 2001, we have been promoted by six places in the ranking of global importers. Poland's share of global trade in goods increased between 2001 and 2023 by 0.95 p.p. in the case of exports and by 0.66 p.p. in imports. In 2023 Poland's share of planet exports of goods was 1,52% and was at the highest level in the past of available data.

This year, the revenues from exports of agri-food products from Poland stay at a somewhat lower level than the erstwhile year, erstwhile entrepreneurs sold abroad products with a evidence value of over 51 billion euro. According to the National Centre for Agriculture Support, the share of agri-food exports in the value of all Polish exports increased somewhat – from 14.4% in the first 4th of 2023 to 14.6% in the same period of 2024.

In 2023 Poland was the 22nd largest export in the world. Compared to 2001, our country was promoted to the ranking of the largest exporters by as many as 10 seats. Thus, in terms of export volumes, we have surpassed Brazil, Saudi Arabia and Turkey.

In the first 4th of this year, the value of agri-food exports from Poland amounted to EUR 12.7 billion and was 3% lower than in the same period of 2023. Import of agri-food goods to Poland amounted to 8.6 billion EUR and was 1% smaller than last year. Agricultural and food products are exported from Poland primarily to the European Union market. Germany, France, the Netherlands, Italy and the Czech Republic stay the main trading partners of Poland. From non-EU countries these are: large Britain, Ukraine, United States.

The Polish improvement Fund in its analyses emphasizes that among the 10 department of goods for which Poland notes the highest value of the ratio of the disclosed comparative advantage (RCA)1up to six of them are departments related to agricultural products and agri-food processing:

  • tobacco and industrial tobacco substitutes,
  • preparations of meat, fish or crustaceans,
  • meat and edible offal,
  • processed from cereals, flour, starch or milk,
  • cocoa and cocoa preparations,
  • products of animal origin not elsewhere specified or included.

It is surely worth analysing exports in these key departments and discussing the anticipation of maintaining or improving Polish competitiveness.

Tobacco and manufactured tobacco substitutes

Although Poland is not a crucial tobacco maker – in terms of production volume we are 31st in the planet – thanks to its crucial competitive capacity in 2023 we were the second largest net exporter of tobacco and industrial substitutes of tobacco.2. It is worth noting that by 2021 Poland was the largest exporter of goods from this department, but in 2022 China overtook us. This is due to a crucial increase in exports of this country, not a decrease in Polish exports.

China's tobacco exports amounted to $9.175 million, and the value of Polish exports amounted to $3,572 million at the end of 2023. The 3rd place included Germany with a consequence of $3,393 million. It should be pointed out that the tobacco manufacture is 1 of the most crucial sectors of the Polish economy, for example, due to the fact that Poland is simply a leading maker of tobacco products in the European Union, satisfying almost 40% of the needs of the full Community market. In Poland, 4 of the world's largest tobacco companies have their factories. They besides invest in modern production facilities, service centres and fresh technologies. Budgetary receipts for excise duties on tobacco products in 2022 amounted to over PLN 26 billion, which accounted for over 5% of full Polish budget revenues.

The European Union presently produces 120 000 tonnes of high-quality tobacco. Tobacco leaf production in the EU is around 2.5% of the planet market, but at the same time respective 100 1000 tonnes of tobacco come into Europe from different countries. In Poland, production oscillates at around 20 000 tonnes, which gives 3rd position among EU countries. Unfortunately, if there are no crucial changes in the ageing of the Polish village, home production will fall. In this area, a government programme for the construction of households capable of marketable tobacco production is urgently needed to guarantee the supply of high-quality natural material for home production. Especially as the US investor announced a billion PLN investment in the production of fresh types of tobacco products, and nipponese over 600 million.

Of course, it is crucial to bear in head the government's wellness policy to destruct or reduce smoking significantly. According to the latest estimates in the planet wellness Organisation (WHO) published study on tobacco trends, there are 1.25 billion adult tobacco users worldwide. Trends in 2022 point to a steady decrease in tobacco usage rates worldwide: presently tobacco smokes statistically all 5th person, in 2000 it was all 3rd person. The WHO study shows that 150 countries effectively reduce smoking. In the coming years, this list will be accompanied by:

  • Ireland (until 2025),
  • New Zealand (until 2025),
  • Finland (until 2030),
  • Denmark (until 2030),
  • Scotland (until 2034),
  • Canada (until 2035),
  • Poland – by 2030

It should be pointed out that the tobacco manufacture is 1 of the most crucial branches of the Polish economy, for example due to the fact that Poland is the leading maker of tobacco products in the European Union, satisfying almost 40% of the full Community market.

Preparations of meat, fish or crustaceans

Poland is the 3rd largest net exporter of meat, fish or crustaceans products in the world. The value of Polish net exports in this sphere amounted to US$2.768 million at the end of 2023. The first 2 places included China (10.161 million), Thailand ($6.031 million), and Vietnam ($2.174 million) ranked fourth. Poland's share of global exports of products from this department increased from 1% in 2001 to 5.5% in 2023. A crucial increase in participation was noted at the turn of 2022 and 2023 erstwhile it increased by 1pp (just to 5.5%).

It is worth noting the following subheadings in the export of this department of goods – in 2023 they accounted for 64.5% of abroad sales, compared to 29.9% in 2001:

  • meat of birds of the species Gallus gallus domesticusprepared or preserved,
  • sausages and akin preparations of meat, meat offal or blood; food preparations based on these products,
  • meat of swine, but hams, shoulders and parts thereof, prepared or preserved, including mixtures,
  • fish prepared or preserved, full or in pieces but not minced.

Meat and edible offal

Poland is besides the sixth largest net exporter of meat and edible offal in the world. The main recipients are EU countries (over 77% of exports). We can definitely say that exports in this section were concentrated – the following 5 subheadings, which in 2023 accounted for over 65% of exports, accounted for 34.7% in 2004:

  • cuts and offal of birds of the species Gallus gallus domesticus, fresh or chilled,
  • Fresh or chilled cuts of bovine meat, with bone in (excl. carcases and half-carcases),
  • cuts and offal of birds of the species Gallus gallus domesticusfrozen,
  • boneless bovine meat, fresh or chilled,
  • meat of bovine animals, boneless, frozen.

Preparations of cereals, flour, starch or milk

As regards net exports of cereal, flour, starch or milk products worldwide, Poland ranks third. Its value at the end of 2023 was $3,065 million. Italy ($6.566 million) was the largest net exporter globally, followed by the Netherlands ($ 3.171 million), and Germany ($ 3.049 million). In terms of nominal export volume, we are in the eighth place in the world, and our share of global export increased from 1.4% in 2004 to 4.6% in the erstwhile year. 10 countries, 7 of which were members of the European Union, accounted for almost 60% of planet exports of this chapter.

It is worth mentioning 4 sub-headings, which accounted for more than 75% of exports – their main recipients were the European Union countries – 67.9% of the share in 2023:

  • bread, rolls, confectionery, cakes and cakes and another bakeries,
  • waffles and wafers,
  • food preparations obtained by the swelling or roasting of cereals or cereal products,
  • Sweet biscuits.

Cocoa and cocoa preparations

It should besides be mentioned that Poland is the ninth largest net exporter of cocoa and cocoa products in the world. The value of Polish net exports amounted to $872 million at the end of 2023. The largest global exporters, in net terms, were the following countries: Côte d'Ivoire ($5.801 million), Ghana ($1.874 million) and Germany ($1.668 million).

The most crucial item in the export of goods from this department was chocolate and another cocoa-containing preparations, the share of which has exceeded 90% since 2001 and increased to 97.8% in 2023. The biggest recipients of exports from Poland are the countries of the European Union, to which in 2023 more than 68% of our abroad sales went.

Products of animal origin

The value of Polish net exports of animal products at the end of 2023 amounted to $104.5 million, which placed Poland in eighth place. The first 3 places included Brazil ($552.1 million), China ($422.7 million) and fresh Zealand ($402.8 million), respectively. By 2012, net exports from Poland recorded negative values. It was only from 2013 that the value of abroad sales began to exceed the import of goods, and since 2019 it oscillates around $90-110 million.

The following 4 sub-headings corresponded in 2020 to more than 89% of exports of this chapter – it is worth mentioning that their share has remained so advanced since 2001:

  • guts, bladders and stomachs of animals (except fish), full and in pieces, fresh, chilled, frozen, salted, in brine, dried or smoked,
  • products of animal origin, not elsewhere specified or included, unfit for human consumption,
  • feathers, of a kind utilized for pushing and down,
  • products of fish or crustaceans, molluscs or another aquatic invertebrates unfit for human consumption.

How to keep competitiveness?

If we want to keep or even increase the volume of sales of goods in the future, we must surely extend the Polish offer, without forgetting that even the entry of Ukraine into the EU or the fresh free trade agreements will consequence in a sharp increase in the impact of competition. It is besides worth looking for new, at first glance niche, production spaces – it turns out that from the appearance of tiny activities, e.g. the cultivation of snails for the mucus for the production of cosmetics or the reconstruction of the production of fruit wines from currants, aronia and gooseberries in decorative, hand-made vessels made in Polish glassworks can give a satisfactory profit to the producer.

Unobvious factors specified as readability and universal cognition of agri-food procedures and regulations, or efficient mechanisms for farmers' cooperation with universities and technological institutes, are besides crucial in maintaining competitiveness.

In addition to constant monitoring of production efficiency (especially labour costs, availability of workers – including seasonal, energy costs, etc.), providing natural material, as well as protecting our own and European markets, the function of readability and universal cognition of procedures, as well as regulations on production processes, agriculture and processing business, should besides be recognised. Both at farm level and among administrations and policy makers at national and European level.

In the case of specified a complex sector, we must learn at all stage, learn about the challenges and consistently build clear operating mechanisms, including national and EU support programmes. Strong links between the agri-food sector and universities and technological institutes should besides be promoted.

The warrant of success is to constantly guarantee that Polish food is available and recognized on an expanding number of markets. It is not only farmers and food processors who must remember that it is as crucial as the request for a solid and competent control of food products at the EU border and in commercial networks, that it is besides crucial to guarantee the quality of our Polish production. It is worth remembering that control bodies, specified as the State Inspectorate for Plant Protection and Seeding, the Provincial Inspectorate for the Commercial Quality of Agricultural and Food Products, the border sanitary and epidemiological stations or the State Veterinary Inspection are crucial and essential partners protecting against unfair competition. Each of us, not only Polish maker or food processor, is either a good or a bad ambassador of Polish production. Success and trust are most frequently worked for years, and mistakes or inactivity from politicians and diplomacy, but besides dairy or slaughterhouses, can rapidly undo this.

1 RCA Revealed Compact Advantage) an indicator to measure the competitiveness of the trade sectors of the country.

2 At the same time, it was the year in which Polish tobacco exports recorded historically the highest result.

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