Polish food products are appreciated in Europe - this cannot be denied. Both importers and consumers praise Polish food primarily for its good value for money. However, trends in the food market are changeable and conditioned by many dynamic factors.

In the face of these variable processes, does Polish food have a chance to maintain its competitive status on the European market?

The impact of globalization on the food industry

If we want to take a closer look at the factors that have shaped the world food economy in the last two decades, we should certainly mention globalization and the liberalization of trade in agri-food products. They were the factors that led to a rapid concentration of production, capital and trade in many developed countries, which translated into higher economic efficiency of the food sector. The situation is more difficult for developing countries, which more often report a deficit in agri-food trade. Therefore, this disproportion in some way shapes who is the importer and who is the exporter on the food market (both in Europe and in the world). Poland, undergoing dynamic changes at the turn of the 20th and 21st centuries, managed to modernize agriculture quite efficiently (largely thanks to EU subsidies), while maintaining the most appreciated values ​​of agri-food production.

It should also be emphasized that the global agri-food trade has been strongly concentrated, and almost half of the value of global trade in agri-food products is accounted for by two players: the United States and the European Union (in total 48.1% of the value of global exports and 46.6% of the value of import).

Food in Europe - trends and expectations

Both on a global and European scale, certain specific trends can be noticed when it comes to the agri-food market and the preferences of the consumers themselves. Technological progress, dynamic demographic and climate changes have created a new framework for the development of the food economy in the world and influenced the expectations of consumers.

Which food on the European market can therefore be considered competitive? On the one hand, agri-food enterprises are under pressure to maximize productivity and production volume, on the other - European consumers expect high-quality, organic food with a transparent production process. Appropriate requirements for the quality of food and its safety are set by the law of the European Union itself.

Polish food = healthy food?

The success of Polish food products on the European market is certainly supported by the fact that it meets the highest expectations in terms of quality. Despite the dynamic development of Poland, many farms still base their production on naturalness. This means that much less chemicals, fertilizers and sprays are used there than in some Western European economies. Polish food fits perfectly (rightly!) In the prevailing fashion for conscious, healthy and ecological consumption.

The best proof of the high quality and eco-friendliness of Polish food products is their taste, appreciated by consumers not only in Europe, but also around the world. And it should be remembered that it is the preferences of consumers that are one of the factors influencing importers who bring food to a given country.

Good value for money?

Over the years, the competitiveness of Polish food on the European market has also been determined by another factor - good value for money. Simply put, Polish food was not only more "eco" but it was also cheaper than products from other European countries. However, in the face of economic and geopolitical changes, will Polish food be able to maintain the advantage of price competitiveness? Especially at a time when on the European market you can more and more often find relatively cheap (and meeting restrictive EU standards) food imported from Eastern Europe? The answer to this question is not unequivocal - in order to get closer to it, it is worth considering the state of Polish exports in recent years, and preferably - at the beginning of the pandemic.

It turns out that Polish food exports, initially affected by the pan-European lockdown, managed to make up for the losses very quickly: from January to November 2020, the value of foreign sales of Polish food amounted to EUR 31.3 billion, which was similar to the total value of Polish food exports in 2019 ( EUR 31.8 billion).

Inflation and Polish food prices

It cannot be denied that the high inflation currently prevailing in Poland has significantly weakened the position of the Polish zloty in relation to the main European and world currencies. Paradoxically, this may once again increase the competitiveness of Polish food, which will be simply cheap compared to other European products. Consumers themselves are also looking for cheap food, which is confirmed by research.

Unfortunately, there is also a flip side to the coin. Rising energy costs, rising labor costs and new taxes (such as the sugar tax) will adversely affect the price of Polish food, increasing it. Many European importers may also be concerned about the unstable zloty exchange rate. This poses new challenges for Polish entrepreneurs if they want to ensure their products' current competitiveness and value for money.

The statistics speak for themselves

Despite these few negative factors, Polish food exporters should not have much cause for concern. According to the report published by the Polish Ministry of Agriculture and Development of the WSI (MRIRW), the trend of Polish food exports is still growing. In the period of January-August 2021, 5.2% more food products from Poland went abroad than in the corresponding period in 2020. It should be emphasized that as much as 70% of revenues (about EUR 14.7 billion) from the export of Polish agri-food products was obtained from sales to EU countries.

Invariably, Germany remains the main Polish trade partner. In 2021, they bought Polish food products for a total amount of around EUR 5 billion. Among the remaining main importers of Polish food, one can mention France, the Netherlands, Italy and the Czech Republic. Interestingly, despite the fact that Great Britain has left the EU (and the related customs restrictions), the United Kingdom remains a significant importer of Polish food.

What is imported from Poland?

What agri-food products are most often imported from Poland? The commodity structure of Polish food exported is dominated by meat and meat products, and the revenues generated constitute 19% of the value of all Polish exports of agri-food products. In 2021, the most frequently exported were poultry (37%), processed meat (25%), beef (23%) and pork (12%).

The second type of agri-food goods most frequently exported from Poland are cereal grains and cereal products. Their sales increased by 9.5% compared to 2020 and reached a total value of EUR 2.6 billion. Dairy products, confectionery, as well as fish and fish products are more and more eagerly imported from Poland. It can therefore be concluded that the competitiveness of Polish food does not decrease even in the face of its production costs, and Polish food products are simply liked and appreciated in other European countries.

 

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