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Trends and forecasts
The competitiveness
of the agricultural and food sector
It is estimated that there is a significant potential
competitiveness advantage of Polish agricultural
holdings, over other EU countries with
similar environmental farming conditions. Due to
a necessity to adjust the agricultural holdings to
EU standards with regard to environmental protection
and the improvement of animal welfare,
within the last years, the processes of modernisation
of agricultural holdings have been substantially
accelerated.
Currently, Poland is competitive in those
branches of agricultural production which require
a great amount of labour and land, which
are labour consuming and which are difficult to
be mechanised at the same time (in particular
the production of fruit and vegetables). The main
source of competitive advantage of Polish holdings
is their lower prices. Poland has significant
advantages with regard to prices in agriculture
related to the production of cattle for slaughter,
poultry and milk, whereas a smaller advantage
can be observed for crop production, and a
changeable and small advantage in the production
of pork meat.
Important elements in the building of the
competitive position of Polish agricultural sector
in the nearest future include: the high quality
of agriculture products manufactured using
environmentally friendly methods, a low level of
environment degradation and a great landscape
value, relatively high levels of biodiversity and the
promoting of activities which unite agricultural
producers (agricultural producers’ groups).
Today, the competitiveness of Polish
agricultural and food sector can be assessed
as quite high. As a result of Poland’s
EU accession, Polish food industry
is distinguished as being modern, which
provides a durable foundation for the
further development of the sector and
strengthens its position on the single
European market.
This is evidenced by the positive balance of the
foreign trade in Polish food and agricultural products
and the measurements of the competitive
position of this sector. Removing the trade barriers
in connection with Poland’s EU accession
has shown the high price competitiveness of Polish
food and agricultural products and resolved
doubts that the Polish agricultural and food sector
will fail to face the competitiveness of the highly
developed countries.
The dynamic development of agricultural and
food sector is one of Poland’s most significant
successes after the EU accession. This success in
foreign agricultural and food products trade can
be attributed across all food industry products
that annually constitute around 80% of Polish
agricultural and food exports, and generate the
highest positive balance in agricultural and food
products trade.
The access to a large, well developed European
market and the dynamic growth of Polish food export
has influenced the strengthening of the position
of Polish food producers on the EU market as
well as the increase of the food sector’s importance
for the Polish economy. Poland’s membership of
the EU has shown that the Polish agricultural and
food industry has competitive comparative advantage,
which, thanks to the participation on the single
market, can be effectively used. Among the factors
directly contributing to the dynamic growth
of Polish agricultural and food products export are
the quality and health status of Polish products.
Poland’s export offer is attractive with regard to its
price, its safety and its good quality, all attractive to
foreign consumers.
Analysis of the results of foreign trade of agricultural
and food products shows a breakaway increase
in the export value in comparison to 2003
(over three-fold) and a significant improvement
of the balance of foreign trade in these products
(six-fold). These are the best measures of Polish
Pasture grazing favours
organic production
Autumn 2011 21