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Paweł Zambrzycki

Agricultural Market Agency

Food Promotion Office

Agricultural Market in Polandproduction and trade

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What is the Agency?

Established in 1990 transformation:

centralised socialistic policy --> free agricultural market rules One of the two EU Paying Agencies in Poland Stabilising of agricultural market Implementing approx. 50 different schemes of the CAP

intervention buying, payments for private storage, export refunds, import and export allowances, production quotas, support of consumption, promotion of products

Approx. 450 000 beneficiaries (clients) Staff of approx. 1300 employees

16 branches (in voivodships) and central office

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Polish AgriculturePolish Agriculture

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Farms in Poland

No of farms (total) 2,6 mln ▼

No of farms (> 1 ha of agricultural lands) 1,8 mln ▼

Average area of farm (> 1 ha of agricultural lands) 9,0 ha ▲

Total area of Poland: 31,2 mln ha Population: 38,1 mln, 39% in rural areas Agricultural lands: 16,1 mln ha (No 5 in the EU)

source: Central Statistical Office GUS (2009)

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Arable lands75%

Orchards2%

Meadows15%

Pastures5%

Other agricultural

lands3%

Agricultural lands

Area of agricultural lands in private farms - 14,5 mln ha

source: Central Statistical Office GUS (2009)

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Cereals74%

Other3%

Vegetables2%

Potatoes4%

Feed crops8%

Sugar beets2%

Oilseeds7%

Structure of sown area

Total sown area: 11 615 000 ha

source: Central Statistical Office GUS (2009)

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Milk16%

Potatoes4%

Industrial crops

9%

Vegetables7%

Fruit6%

Cereals12%

Other plant production

6%

Other animal porduction

1%

Eggs6%

Animals for slaughter

33%

Agricultural Production

Animal production

56%

Plant production

44%

source: Central Statistical Office GUS (2009)

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Cereal yields of main producers of the EU (mln tons)

France

Germany

Poland United Kingdom

0

20

40

60

80

64 - 7064 - 70

45 - 5045 - 50

26 - 3026 - 3020 - 2420 - 24

mln tons

source: Eurostat

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Production of animals for slaughter(k tons in post-slaughter warm weight)

355 350 400 405 417 424

1980 1981 2165 2165 1937 1717

916 10161037 1116

11651248

0

1000

2000

3000

4000

2004 2005 2006 2007 2008 2009

Cattle & calves Pigs Poultry

source: Central Statistical Office GUS (2009)

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Production in Poland vs. the EU

PORK3rd producer (1,61 mln tons) following DE, ES, FR, followed by IT

BEEFAmong top 10 producers (390 000 tons) comparable with NL

POULTRY5th producer (1,27 mln tons) followed by IT

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Production of milk(in k tons)

8002

8842

8672 8631

8947

9145

7200

7600

8000

8400

8800

9200

9600

2004 2005 2006 2007 2008 2009

source: Central Statistical Office GUS (2009)

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Production of fruit and vegetables

World production of fresh fruit: approx. 500 mln tons (EU-27: approx. 40 mln tons)

Production of fruit in Poland: approx. 3-3,5 mln tons (among top producers in the EU)

1st producer of apples in the EU, 2nd in the World (following the USA, followed by IT, FR)

Among top producers of strawberries in the World, 2nd in the EU

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Production of fruit and vegetables

Among World top producers of deep-frozen fruit & vegetables (0,8-0,9 mln tons)

1st in the EU and among top World producers of raspberries (75-82 k tons), black- and redcurrants (180-197 k tons) and cherries (150-200 k tons)

Among top World producers of mushrooms (220 k tons) and processed products (60% exported)

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Price ratio Poland vs. the EU(PL% vs. EU average = 100%)

94

73

77

101

83

93

100

87

98

0 20 40 60 80 100

Barley

Corn

W heat

Pigs

Poultry

Beef

Pork

Eggs

Raw milk

source: EUROSTAT (2009)

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Food Industry in

Poland

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Processing of milk15%

Other17%

Alkohol beverages

8%

Processing of cereals & bread

9%

Sugar3%

Processing of fishes

3%Confectionery

6%

Alkohol-free beverages

7%

Processing of fruit, vegetables

& potatoes7%

Processing of meat & poultry

25%

Structure of food industryin Poland

source: Central Statistical Office GUS (2009)

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International trade of agricultural products (in bn EUR)

11,311,211,7

9,9

8,5

7,0

5,2

9,19,1

10,3

8,0

6,4

5,4

4,4

0,8

1,7 2,1 2,01,4

2,1 2,2

0

2

4

6

8

10

12

2004 2005 2006 2007 2008 2009 2010*

Export Import Balance

* forseen

source: IERiGŻ

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tobacco & alkohol

11%

fruit, vegetables, mushrooms &

processed products

16%

cereals & processed products

7%

oil & processed products

4%

other18%

animals19%

milk & processed products

8%

fishes & processed products

8%

sugar & processed products

8%

potatos & processed products

1%

Structure of exportof agricultural products

Source: IERiGŻ (2009)

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DE28%

UK8%

IT7%CZ

8%

NL7%

RUS6%

UKR3%

others19%

FR6%

HU5%

LIT3%

Main destinations of exportof Polish agricultural products

Source: FAMMU/FAPA (2009)

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Production vs. export of main products

** Export of meat including live animals and products calculated as meatSource: Central Statistical Office GUS (2009)

ProductProduction

(k tons)

Share of export

in production(%)

Cereals 29 827 12Rape 2 497 13Sugar 1 646 11Fruit (total) 3 600 27Processed fruit 820 87Vegetables (total) 5 800 7Processed vegetables 965 49Pork** 1 717 19Beef** 424 67Poultry** 1 248 30Milk 12 447 16

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Advantages of Polish agri-food sector

High production potentials based on rich natural resources and uncontaminated environment4th in sown area, 6th in grasslands in the EU

Developed and constantly improved quality of production of live animals and meatPork: increase of E-class from 35% in 2006 to 46%

in 2009; implemented national food quality system (Pork Quality System, PQS)

Beef: implemented national food quality system (Quality Meat Program, QMP)

Poultry: implemented national food quality system (Quality Assurance Food Program, QAFP)

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Advantages of Polish agri-food sector

Developed and constantly improved quality of production of milk on farms, modern production facilities, assurance of high and durable quality

High expertise of staff in sector assuring pro-consumer approach: development of probiotics, low-fat products, enriched products (Omega-3, Omega-6 etc.)

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Advantages of Polish agri-food sector

Competitive prices

Quickly expanding market of organic, regional and traditional products: 23 products registered as PDO, PGI and TSG Community denominations

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Thank you for your attention

Paweł ZambrzyckiAgricultural Market AgencyFood Promotion OfficeWarsaw, POLANDph. + 48 22 661 71 11E-mail: promocja@arr.gov.plwww.arr.gov.pl