The conversation is led by Marcin Wandałowski – editor of the Civic Congress.
What are the implications of Ukrainian grain imports to Poland – both from our position and Kiev?
Let's start from the point of view of our east neighbors. Ukraine must sale its grain on abroad markets, as it is its basic export product – both now and in the coming years. Even if the war continues and the Russians proceed to destruct the transport infrastructure, they will surely not be able to destruct thousands of hectares of land.
Most Ukrainian agricultural exports are directed to east markets, primarily Asian and African markets. This year, abroad sales of cereals will be around 31-32 million tonnes in Ukraine, of which 3-6 million tonnes will scope Europe, or 10-20 % of the full production. Let us bear in mind, therefore, that we are not in danger of a script in which all Ukrainian cereals enter the Old Continent market. Ukrainians will most likely want to send more of them here than before, due to the fact that it is simply a marketplace for the richest consumers of the world, which brings profits to the sellers, but at the same time it is simply a marketplace which sets very advanced requirements.
We are not in danger of a script in which all Ukrainian cereals enter the Old Continent market. Most of them are directed to east markets, mainly Asian and African markets, and only 10-20% of them go to Europe.
To what extent?
The European Union imposes very advanced quality requirements on food products produced here and imported. They concern de facto each phase of food production. Thus, the EU's plant protection product portfolio is twice as narrow as Ukrainian farmers today. This means that cereals which have been produced beyond our east border utilizing resources not accepted by Brussels will not be allowed to enter the Community.
The European Union imposes very advanced quality requirements on food products produced here and imported. They concern de facto each phase of food production.
A better part of what is produced in Ukraine is so on the European market. The Ukrainians want to increase their export pool to the Union market, but first, they inactive have their obligations in another markets and it would be unwise for their economical strategy to abandon trade relations with China, another Asian powers or African countries. Secondly, even if Ukraine wants to export more grain to Europe, it will not be possible to implement these intentions immediately. Let us remember that the active chemical agent, found in plant protection products or fertilizers, remains in the ground for the next fewer years, which is unacceptable from the EU perspective.
Let us take this cool – nonsubjective view. So what should be Poland's policy towards Ukrainian export hunger?
I believe that we should not treat the neighbourhood with Ukraine as a godly indulgence, but as an interesting challenge from which we can reap considerable benefits. It is actual that our neighbors have any of the best conditions in the planet for increasing many agricultural crops, especially cereals, as well as immense land areas. But Poland has in turn very modern – if not the most modern in Europe – agrifood industry, mostly built or upgraded for EU money.
Ukraine is characterised by any of the best conditions in the planet for increasing many agricultural crops, in peculiar cereals, as well as immense land areas. In turn Poland has a very modern – if not the most modern in Europe – agrifood industry. It's worth combining these potentials.
When we add that according to the Central Statistical Office the modern Polish food manufacture is presently working at 55-60% of the power, it is easy to conclude that it might be worth combining Ukrainian possible with Polish, more specifically: to supply cereals from the east border our industry. This arrangement appears to benefit both us and our neighbours – on the 1 hand, Ukrainians would receive higher wages for their agricultural products than in Asian or African markets, and on the another hand Polish manufacturing companies with a food profile, which present produce food for about 80 million Europeans and have a reputation and brand, could grow their production and so export.
What is the “company product” of Polish companies in the industry?
They have a well-established opinion of a solid simple but safe food manufacturer. We have all kinds of nuggets, ready meals, chips, fries, flour products, specified as pasta, and many, many more. Interestingly, we are besides 1 of the biggest producers of chocolate and coffee in Europe – it is known that cocoa is not increasing in our country, so this shows that we are already processing successfully, internationally, besides agricultural products that do not have a chance to grow on our land.
Is there no hazard that by producing food products based on Ukrainian agricultural products, the reputation of Polish food producers could suffer? After all, the European consumer may prefer, for example, pasta based solely on EU crops.
The European Union has its principles, with which it is improbable to break up, and 1 of them is consumer safety. I do not think that it has anything against the import of cereals from Ukraine, if it is of course of the quality. At a further stage, the EU entrepreneur will process them and take work for the quality of the final product. As far as the recipient is concerned, it will see on the description that the product has been produced in the EU. From its perspective, it will so be able to feel safe, knowing that even if the cereals entered the European marketplace from Ukraine, the licensed Union producer, which has to comply with the quality standards prevailing in the Community, will vouch for it.
How could the economical alliance of Poland and Ukraine be made, whose imagination you are developing, peculiarly in view of the friction we have been experiencing lately in connection with the embargo on grain imports?
It seems to me that the Polish business alliance has been taking place for any time. Let me remind you that not so long ago the Polish government was arrogant to present data on the quantities of grain that came from Ukraine to Poland. It is clear that it was not brought by Polish farmers, but by those who needed it, and so mainly by agri-food companies.
The Polish manufacture has not been cooperating with Ukrainian agriculture since today, so this is not a deal that should be initiated, but alternatively something that we should halt being ashamed of and further make with concern for our interests. presently – in the era of the embargo on imports of wheat, among others – we are dealing with a situation in which everyone pretends that Ukrainian cereals are not needed at all. And that is not actual – for respective seasons we have imported maize from Ukraine to keep the current level of production, we should keep this trade relationship.
The Polish manufacture has not been cooperating with Ukrainian agriculture since today, so this is not a deal that should be initiated, but alternatively something that we should halt being ashamed of and further make with concern for our interests. presently – in the era of the embargo on imports of wheat among others – we are dealing with a situation in which everyone pretends that Ukrainian cereals are not needed at all. And that's not true.
Let me digress. possibly a small controversial. Introduced by respective EU governments, including Poland, the embargo on the import of cereals from Ukraine is not a solution that has given any tangible benefits to Polish farmers. I presume that the aim was to defend agricultural income by preventing further decline in prices, even by provoking them. But that did not happen. I am observing the situation on the marketplace and I must admit that prices are inactive falling (in line with global trends), in a way "not looking at" the Polish embargo. So we utilized a tool that did not give real benefits to Polish agriculture, but caused measurable problems fighting the aggressor of Ukraine. Let's decision on, so let's think about who destabilized the market, giving it a downward trend on a global scale. Last season, Russia had a evidence cereal harvest that even flooded the planet market. "We so punished" not the 1 who was guilty, and in addition we did not give real protection to Polish farmers. possibly instead, it was better to supply direct support to them, for example, for one-off subsidies?
But let us return to your question. The links between Polish food production and Ukrainian agricultural crops are best seen in the example of maize and soya imports. Their blend serves as feed for chickens, and in the area of their breeding Poland is an absolute hegemon – not only in Europe but besides in the world. We are 1 of the largest producers and exporters of poultry, which means that we request millions of tons of maize and soy each year. Ukrainians in turn produce immense amounts of corn and – unlike us – have climatic conditions for soya cultivation. Moreover, they erstwhile made a very good decision that their agricultural crops were free of GMOs, or genetic modifications. The conditions for cultivation are so good that these modifications are not simply needed by the Ukrainians. However, if we were to be on our own, as I mentioned, we would not produce the soybeans ourselves, but the maize would, only in much smaller quantities than the request of our poultry industry.
It can so be said that Ukraine is simply a key "subsupplier" for the modern Polish food industry. This reminds me of Polish companies in the area automotive Working with German automotive companies.
If we look at this relation from the position of the value chain, then in fact – Ukrainians supply us primarily unprocessed agricultural crops, while Polish companies deal with processing them, i.e. they operate at further stages of the chain. utilizing the example of poultry farming: we bring corn from our neighbours, and then in the first phase of processing we turn it into fodder, on the second – we feed it to chickens, and on the third, well, we kill it. Then we deal with their dispersal, processing into, among others, chops or minced meat and packing, occupying subsequent chain links.
Imageably speaking, the business relation described can be presented in specified a way that grain wagons come to us from Ukraine, after which we send cars to the West of Europe with aesthetically packed chops with the logo of a known brand.
Z Ukraine comes to us with grain wagons, after which we send cars to the West of Europe with aesthetically packed cutlets with a logo of a known brand.
Without doubt, our food manufacture companies can benefit from cooperation with Ukraine. But will the interests of Polish farmers not be jeopardised in specified a model?
The essence of prosperity and Prosperity is constant, consistent development. "Let it be as it is, let us not change anything" is simply a recipe for business failure. This is simply a dependence that works 100%, as the world's giants, specified as Kodak, have been convinced, as well as tiny workshops or farms. economical and political conditions are changing, so they request to be adapted. Thanks to the interplay of international, geopolitical and excellent choices which we ourselves – Poles – have made in fresh history, Poland has come out of the historical corner. We do not gotta just avoid the punches, or take them “on guard”, we have space to decide what decision we want to make. It's been different since the late 17th century. I can realize that we have difficulties (typical for the debutante) in participating in creating the form of the planet or Europe. However, we should not quit this opportunity. You can't build a good future on defence status quo. Let us make this advancement not by imitating, copying or adapting to what others will decide. Instead, let's go to the next level and take part in creating a common future.
Ukraine as a well organized part of the West in economical and cultural terms is simply a better interest for Poland than Ukraine outside this system. You can't do that without compromise, partnership, getting along. Moreover, our relationships will require that we take care of them, due to the fact that they will inevitably evolve. The Polish food sector and its environment have a number of opportunities to benefit. Let's make certain of that.
This is my long introduction to a comparatively simple answer – the interests of Polish farmers will not only not be threatened, but will flourish if we go towards quality. We have respective decades of experience in supplying European tables. Europeans are the most demanding consumers, but they are willing to pay well for this quality. In the European food market, we see powerful changes that drive this marketplace towards conscious, advanced expectations, consumption. A modern EU client wants to know where and how food was produced for him. It is best to have ecological, biodynamic methods, respecting the nature and rights of animals. We can do it, yeah, we're already doing it. It's time to go that way.
Few people are aware that in fresh years a higher quality food marketplace has been created in Poland – practically from scratch – which will grow further each year, creating an excellent space for Polish farmers to develop. Its culmination is, of course, organic food, but let us not deceive ourselves – it is impossible to transform all Polish "traditional" farmers into organic farmers. At this point, it is worth recalling that the EU expects around 25% of agricultural production of each associate State to be organic. Is it feasible? Austria, having rather akin cultivation conditions to Polish ones, proved that yes.
How wide is the organic food marketplace today?
Statistical Pole spends 7 euro on this kind of products per year. In the developed countries, specified as Denmark and France, this amount exceeds EUR 350, while in Austria and Germany it is approaching EUR 400. Remember – eco-food is just an example here, being only part of the high-quality food market.
In view of how many shops you can meet present not so much products as full shelves with eco products, until 1 cannot believe that the average Pole spends on them the equivalent of 30-a fewer zlotys a year.
This surprise may be due to the fact that we live in large-town bubbles – in the area of the sale of organic food, primacy in the country is led by the largest metropolises like Warsaw, Tricity, Wrocław or Krakow. In addition, the request for organic products is importantly lower.
While remaining on request – the marketplace for high-quality food, including organic food, is constantly growing, not only in Poland, but besides in Poland. de facto across Europe. Even in the most environmentally conscious countries and societies in the avant-garde of healthy nutrition, which are already high, bio-food spending will increase in the coming years two-thirds. A akin phenomenon has been observed late erstwhile it comes to locality fashion. We inactive see it – it was not temporary.
Polish consumer is not yet buying food of the same quality as in the West, but I am convinced that this situation will shortly change. We are getting richer and we are practically replicating Western consumer attitudes. If in fresh years we have been able to acquisition the same washing machines, TVs or smartphones as in the most developed countries, why should we, being increasingly mature consumers, quit quality food?
If in fresh years we have been able to acquisition the same washing machines, TVs or smartphones as in the most developed countries, why should we, being increasingly mature consumers, quit quality food?
Especially erstwhile her affirmative wellness dimension is highlighted...
Yes – erstwhile we look at the societies that spend the most on food, including the French, Italian or Japanese, we will announcement a correlation with average life expectancy and overall health. These are countries where life expectancy is respective years higher than in countries with the same level of development, but where it seems proportionally little for food. These 3 countries have the highest per capita food spending and the highest per capita life expectancy. Saying "you are what you eat" works perfectly in their case.
Do you think we are ready for healthy but costly food?
I am able to present many stories showing that the answer is yes. For example – 1 of the Polish producers of home chicken, based on their business model on their exports to Western countries, introduced any of their quantities to Polish stores. The meat was much more expensive, twice for sure, if not a small more, than offered in the standard offer. Despite this, it was virtually swept out of store shelves like fresh buns. This shows that many Poles are able to pay more for quality. Let's add, these chickens are already on offer.
The consumer, who, erstwhile going to grocery shopping, only follows the price criterion, is being unreasonable, due to the fact that food is actually the only substance we introduce to our organisms throughout our lives in large quantities. all day we eat about 700 grams of food, or – assuming life expectancy of 80 years – it will be about 245 tons of food we eat through our lives. It is simply a weight of 10 full containers or 6 single-family houses in Canadian technology. Incidentally, the average European eats about 7,000 animals in his lifetime. It's worth reasoning about sometime.
So – the quality of our life and the quality of our body depend very much on the food we eat. I feel that more and more Poles are aware of this.
However, let us return to the question about the prospects of Polish farmers. As I realize it, you are going to conclude that it is not in their interest to compete with underdeveloped Ukrainian agriculture, that we request a kind of "jump forward" - a situation where we will enter more widely the forward and high-margin high-quality agricultural market. But are Polish farmers aware of these opportunities? Will they be able to usage them?
The paradox is that most of this food is imported to Poland at the moment, thus creating a wide field for Polish farmers. I would even be tempted to say that the nature of Polish agriculture – in which farms are much smaller than in Ukraine, for example, where quite a few work is inactive carried out in a manual way – favours the transition of any part of it to ecological or "crafty" methods. Moreover, the increasingly restrictive expectations and EU rules "pull" this sector into an ecological and surely climate-friendly path.
In summary, just as Ukrainians are able to warrant the amount of agricultural production, so are we – its quality. Being related to the agri-food manufacture for 30 years and presently responding to the BNP Paribas for the European, African and Turkish markets, I am absolutely convinced of this. For example, Polish strawberries are unbeaten, like apples, raspberries or berries. I could find much more of our products that are valued on abroad markets. They are not all inexpensive – they are among the most costly ones – but they win with competition due to the fact that the taste and aroma, that is, the quality, of many Polish fruit and vegetables is much higher than those grown in another countries.
Just as Ukrainians are able to warrant the quantity of agricultural production, so are we – its quality. I can list many of our agricultural crops that are valued on abroad markets. They are not all inexpensive – they are among the most costly – but they win against competition through quality.
In your vision, therefore, the strategy for Polish agriculture is based on organic crops, which are up to 25% of the sector, supplemented by agriculture without the prefix "bio", but besides on very advanced quality. Do I get that right?
Yes – the ecological government is the most hard to accomplish as it excludes chemical protection and fertilisation of plants. Organic or biodynamic crops with very low fertiliser doses and protective measures are easier to produce. I do not see why many Polish agricultural producers should enter this area of production – I think it is the best way for them, regardless of how further our relations with Ukraine will continue.
