agriculture and food economy in poland

MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT
AGRICULTURE AND FOOD ECONOMY
IN POLAND
WARSAW 2004

PUBLISHER
MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT
Office for Geographical Indications and Promition
WORK OF MANY AUTHORS
COMPOSITION AND PAGINATING, PRINTED BY
Zak∏ady Graficzne TAURUS
TRANSLATOR
Beata Moska∏a

MINISTRY OF AGRICULTURE AND RURAL
DEVELOPMENT
AGRICULTURE AND FOOD ECONOMY
IN POLAND
WARSAW 2004

Table of contents:
Introduction by the Minister of Agriculture and Rural Development
GENERAL INFORMATION ABOUT POLAND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
AGRICULTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
General information on Polish Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Value of Agricultural Production and Price Relationship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Agricultural Land and Structure of its Utiliusation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Plant Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Animal Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Organic Farming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Population and Human Resources in Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Economic situation of Agricultural Population . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Off-Farming Activities in Agricultural Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Organisation of the Agricultural Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
FOOD INDUSTRY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
General Information about the Food Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Economic Situation of the Food Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Food Industry Output . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Consumption of Foodstuffs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Programme PD˚, Try Fine Food . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Protection of Regional and Traditional Food . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
FISHERIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
General Information on Fisheries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Sea Fishing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Inland Fisheries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Fish Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Fishery Policy and Fish Market Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
FOREIGN TRADE IN AGRI-FOOD PRODUCTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
General Information on Trade in Agri-Food Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Geographical Pattern of Trade in Agri-Food Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Commodity Pattern of Agri-Food Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Export . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Import . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
AGRICULTURAL POLICY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
National Support Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Financing of Agriculture From the National Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Rural Development Programme (RDP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Agricultural Advisory Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Research and Development Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
European Union Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Pre-Accession Programmes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Phare Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
SAPARD Programme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Assistance Funds Following Accession to the EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Direct payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Rural Areas Development Plan (RADP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Sectoral Operational Programme: Restructuring and Modernisation of the Food Sector and
Rural Development (SOP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
AGRICULTURAL CENTRAL AND LOCAL SELF-GOVERNMENT INSTITUTIONS 68
Agricultural Market Agency (AMA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Agency For Restructuring and Modernisation of Agriculture (ARMA) . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Agricultural Property Agency (APA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Agricultural Chambers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Agricultural Circles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
ADDRESSES OF AGRICULTURAL INSTITUTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Ladies and Gentlemen,
Traditionally, as every year before the
International POLAGRA-FARM and POLAGRA-
FOOD Fairs, which are jubilee events organised
for 20th time this year, I am presenting to you the publication “Agriculture and
Food Economy in Poland” giving a realistic picture of Polish agriculture, food
processing industry and agricultural institutions.
The publication supplements the practical presentation of the achievements
of Polish farmers and processing plants at the POLAGRA Fair.
This year’s publication is of particular importance. It is issued several
months after Poland’s accession to the European Union. As from 1 May 2004
Poland has been a member of a new, enlarged European Union composed of
25 states inhabited by 455 million people.
The first few months following accession and experience gained in this
period in the European Community enable us to state that pessimistic
forecasts of European integration opponents have not come true. They
envisaged the flooding of the Polish market with cheap, subsidised food
products from the EU, the holding up of Polish exports due to lack of
adjustments in the Polish food processing sector and the absence of tangible
benefits deriving from the support of Polish agriculture from the EU funds.
As we already know, exquisite taste and quality of our products, as
confirmed by the certificates of compliance with sanitary, veterinary and
quality requirements obtained by 1700 food processing establishments, have
been greatly appreciated by consumers in the enlarged EU. Our food is
becoming better known, appreciated and sought for. The abolition of tariff
barriers is conducive to Polish agri-food exports, which has impact on
improvement of foreign trade balance of these products.
Despite little support for Polish agriculture, according to OECD equal to 9%
of the final production in 2003 compared to an average of 37% for the
European Union 15 member states, Polish products, beside health and quality
values associated with the clean environment and a low usage of agrochemicals,
are characterised by lower prices. For many years now this has

een achieved at the expense of agricultural producers’ income and
profitability of food processing plants.
Accession to the EU has created an opportunity for improving such
situation. It is to our joy and satisfaction that 85% of eligible farmers have
submitted applications for direct payments for the area covering 92% of
agricultural land.
Taking advantage of this opportunity, I would like to thank all those involved
in preparing farmers for obtaining such payments, in particular employees of
the Agency for Restructuring and Modernisation of Agriculture, agricultural
advisory services, local self-governments and agricultural organisations.
As in the case of direct payments, currently the major task is to utilise all
structural funds made available to the Polish farmers, processors, local
self-governments, businessmen and inhabitants of rural areas. We have a
chance to multiply funds allocated for development, modernisation of farms
and enterprises, investment to enhance effectiveness of production and
improvement of living and working standards in villages.
Numerous programmes addressed to a broad group of potential
beneficiaries create an opportunity for a significant improvement of the
situation in agriculture, agri-food processing and rural areas.
I am convinced that the experience acquired upon the SAPARD Programme
implementation, which after initial delays has speeded up, thereby enabling a
full use of the funds transferred from the EU to Poland, will ensure fast
up-take of the structural funds.
At each level, in each agricultural institution or organisation we must
ensure necessary assistance for the people applying for funds and we must not
waste the opportunity that has arisen for Polish agriculture, food processing
and rural areas.
Wojciech Olejniczak
Minister of Agriculture and Rural Development

INFORMATION ABOUT POLAND
General information about Poland
Since 1 May 2004 Poland has been one of the 25 members of the European
Union (EU). Among the 10 countries that joined the EU this year Poland is the
largest in terms of area and population.
The total area of Poland is 312 700 km 2 (9th largest state in Europe and 69th in the
world) and the population is 38.2 million (8th place in Europe and 30th in the world).
Located in Central Europe, Poland borders 7 states: the Russian Federation, the
Republic of Lithuania, the Republic of Belarus and Ukraine in the east, the
Slovakian Republic and the Czech Republic in the south and Germany in the west.
The northern border is the Baltic Sea. The Sudeten and the Carpathians are two
mountain ranges situated in the south. As from 1 May 2004 the border with Russia,
Belarus and Ukraine has become an external EU border.
Poland is a lowland country. Most of its territory has the elevation of up to 300 m
(91.3% of the total area), and only a small part of it is situated over this level (5.6%
between 300-500 metres above the sea level, 2.9% from 500 to 1000 metres above the
sea level and 0.2% over 1000 metres above the sea level). There are three mountain
1

anges in Poland: the Carpathians with the highest mountains Tatras (the highest
peak Rysy – 2 499 metres above the sea level), the Sudeten with the Karkonosze
mountains (the highest peak Ânie˝ka – 1602 metres above the sea level) and the
Âwi´tokrzyskie mountains in the interior of the country (the highest peak ¸ysica –
612 metres above the sea level).
Poland is situated in the basins of the Baltic Sea, the North Sea and the Black Sea.
There are many rivers in its territory (the longest one, the Odra has the length of
742 km in Poland and the Vistula – 1047 km) and lakes (the deepest Haƒcza – 108.5 m
and the largest Âniardwy – 113.8 km 2 ) as well as canals and artificial reservoirs.
Poland has a moderate climate and changeable weather conditions. The summer
lasts from 60 days in the lake districts up to 110 days in the Silesia Lowland, with
fluctuations in particular years. Within the last 3 years the average air temperature was
8.3-9, 1-7.1ºC. The warmest part is south-west, whereas the coolest – north-east.
Figure 1. Average monthly air temperature (°C)
10
8
6
4
2
0
8,3
2001
2002
2003
9,1
7,1
2001 2002 2003
INFORMATION ABOUT POLAND
25
20
15
10
5
0
-5
I II III IV V VI VII VIII IX X XI XII
Source: Agriculture in 2003. Central Statistical Office (GUS), Warsaw 2004, based on the Institute for Meteorology and Water Management data
2

INFORMATION ABOUT POLAND
The rainfall is the main source of water resources.
Figure 2. Average monthly precipitation in Poland (mm)
800
600
400
200
0
725
2001
2002
2003
2001 2002 2003
As for Poland’s administrative division, it is composed of 16 voivodships
(provinces), 314 poviats (counties), and 2478 gminas (communes). Sixty six towns have
the poviat status. The auxiliary units in communes are solectwa (the lowest group of
administrative division, usually comprising a single village), whose number is 40 200.
Figure 3. Units of territorial division in Poland in 2003
2478
16; 314
643
488
160
140
120
100
80
60
40
20
0
I II III IV V VI VII VIII IX X XI XII
Source: Agriculture in 2003. GUS, Warsaw 2004, based on the Institute for Meteorology and Water Management data
Number of gminas
Number of voivodships, poviats
Source: GUS
Pomorskie
123
Zachodnio- 16
pomorskie
114
Kujawsko-
18
pomorskie
144
19
Lubuskie Wielkopolskie
83 226
12 31
¸ódzkie
Warmiƒskomazurskie
116
19 Podlaskie
118
14
Mazowieckie
314
37
DolnoÊlàskie
169
26
Opolskie
71
11
177
Lubelskie
21
213
20
Âwi´tokrzyskie
102
Âlàskie 13
167
17
Podkarpackie
Ma∏opolskie
159
182 21
19
3

Figure 4. Population in 1990-2003 (%)
70
60
50
40
30
20
10
0
29,7
57,5
INFORMATION ABOUT POLAND
12,8
27,6
58,6
13,8
As compared with other European countries Poland’s population is
demographically young, however, the age median has been increasing every year and
is equal to 38.0 for women and 33.9 for men at present. Children aged below 15 make
up 17% of the total population against 25% in 1990.
4
24,1
61,2
14,7
1990 1995 2000 2003
Pre-productive age (0-17 years) productive age (18-59/64 years) post-productive (60/65 and
more years)
Source: Information on Socio-Economic Situation in Poland in 2003.GUS, 2004
22
63
15

AGRICULTURE
General information on Polish agriculture
Terrain formation, climate and soil conditions determine the type and
effectiveness of agricultural production. The soils of average to poor agricultural
quality dominate in Poland. The country is characterised by great biological diversity
and a huge variety of natural habitats and natural landscapes. Farmland productivity
is much lower than that in the EU-15 due to the soil quality and the climate as well
as a much lower usage of agricultural inputs (mineral fertilisers, plant protection
substances). A significant part of farmers, in particular those owning small area
farms, are involved in agricultural production applying traditional methods, mainly
to ensure food supplies for their families. Animal production is mostly characterised
by low intensity, which is not harmful to the environment.
The type of farming is to a great extent determined by climactic and soil
conditions as well as traditions in particular regions. Potatoes, rye and grassland
dominate in central, eastern and northern Poland. Orchards and berry fruit
plantations are located in Mazovia, in lubelskie voivodship, in the region near the
town of Sandomierz as well as in Wielkopolska and ∏ódzkie voivodship.
Poland is a major producer world-wide and in Europe of many agricultural,
horticultural and animal products. It ranks as the second in Europe as regards the
production of berry fruits, mainly raspberries and currants. For many years Polish
agriculture has been one of the biggest producers of onions, cabbage, cauliflowers,
strawberries and apples. As rye and potato type soils dominate, Poland is a leading
producer of rye and potatoes: the 2nd largest producer of rye in the world and in
5

Europe and the 6th largest producer of potatoes in the world and the 2nd in Europe.
As regards meat production, in particular pork, as well as milk and hen eggs Poland
ranks among the 15 biggest producers in the world and in Europe.
Due to low profitability of agricultural production and difficulties in selling
agricultural commodities produced on farms, there was a growing tendency to leave
agricultural land fallow and idle. According to the General Agricultural Census
conducted in 2002, the total area of arable land left fallow and idle was 2.3 million
ha, which accounted for 17.6% of its total area. In 2003 the area of fallow and idle
land diminished to 1.8 million ha. Reduction of plant production and
disadvantageous price relationship of agricultural products result in a systematic
decrease in the share of agriculture, forestry and hunting in GDP.
Figure 5. Share of agriculture, forestry and hunting in the Gross Domestic Product (%)
6
5
4
3
2
1
0
Source: GUS
Value of agricultural production and price relationship
In 2003, the total agricultural production was valued at PLN 56.3 billion (Euro
12.8 billion) and was by almost 10% lower than in 1990. Plant production fell by
21.2%, whereas the value of animal production increased by 2.2% in the period in
question.
Table 1. Dynamics of total agricultural production (in comparable prices)
Source: GUS
6
5,5
4,8
AGRICULTURE
4, 1
6
3,4
3,1
3,3
2,7 2,6
1995 1996 1997 1998 1999 2000 2001 2002 2003
Specification
2000 2001 2002 2003 2003
Previous year = 100 1990=100 1995=100
Total agricultural production 94,4 105,8 98,1 99,2 90,3 98,0
– plant 94,2 108,6 93,3 94,3 78,8 87,4
– animal 94,7 102,5 103,4 104,8 102,1 111,4
Commercial production 96,0 102,9 104,2 105,2 107,3 123,0

AGRICULTURE
Between 1990 and 2003 commercially-oriented production fluctuated from
62.5% in 1990 to 50.1% in 1995 and to 64.9% in 2003. A large part of agricultural
production is used for self-supply on farms and internal usage for the purposes of
animal production (animal feedingstuffs). Despite a fall in the value of plant
production, its share in the total production continues to be higher than that of
animal production, whereas in the case of commercial production the situation is
reverse.
Figure 6. Structure of total agricultural production in 1995 and 2003
60
50
40
30
20
10
0
58,6
41,4
52,8 47,2
1995 2003
Plant production
Animal production
Cereals
Potatoes
Industrial plants
Vegetables
Fruit
Other plant production
Animals for slaughter
Cow’s milk
Hen eggs
Other animal production
Source: GUS
7
23,6
15,4
26,4
11,8
2,7 3,3
11,4
4,5 0,9
1995
2003
8,8
4
17,2
6,1
18,4
7,4
4,7
15,2
7
4,5
6,7

Figure 7. Structure of commercial agricultural production in 1995 and 2003 (%)
70
60
50
40
30
20
10
0
Source: GUS
39,4
60,6
It is not only the volume of production which impacts the value of agricultural
production, but also the level of agricultural product prices. For many years prices
of agricultural products have shown a downward trend and an unfavourable
relationship compared to the prices of other products.
Table 2. Relationship between prices of agricultural products and prices of goods and services purchased
by agricultural holdings
Source: Agriculture in 2000. GUS
40
1995 2003
Plant production
Animal production
Cereals
Potatoes
Industrial plants
Vegetables
Fruit
Other plant production
Animals for slaughter
Cow’s milk
Hen eggs
Other animal production
60
AGRICULTURE
8
16,1
18
41
36,4
3,1 0,4
5 0,6
1995
2003
7,8
11,2
6,8
1,9
2,4
6,1
3,5
6,5
7,5
Specification
2000 2001 2002
Previous year = 100
2003 2003
1990=100 1995=100
1. Agricultural products 114,7 103,8 92,6 99,5 653,0 136,5
- plant 107,4 95,9 99,8 106,2 709,5 140,1
- animal 118,8 108,0 88,8 95,6 620,5 133,5
2. Goods and serwices purchased 111,4 106,5 101,9 102,1 1022,6 199,5
- consumer goods 110,8 104,6 101,3 100,5 1015,6 192,0
- goods for current agricultural production 111,9 106,9 101,9 102,2 1067,9 202,0
- investment goods 105,5 104,9 102,5 101,9 817,7 176,2
3. Price relationship „price squeeze” (1: 2) 103,0 97,5 90,9 97,5 63,9 68,4
8,9
9,1
7,7

AGRICULTURE
Within the whole period from 1990 to 2003 very rarely did agricultural product
prices show an upward trend in real terms. This was observed within the first years
of socio-economic transition, characterised by a high inflation rate, and within
recent years when the inflation rate was many times lower (585.8% in 1990, 27.8%
in 1995, 10.1% in 2000, 0.8% in 2003).
Agricultural land and structure of its utilisation
Poland is a country with average agricultural land resources. In 2003, Utilised
Agricultural Area (UAA) was 16.2 million ha, i.e. it accounted for 51.7% of the total
Poland’s area. Between 1990 and 2003 the acreage of UAA systematically diminished,
mainly due to land allocation for housing purposes. The area used for feeding
purposes as expressed in UAA per capita is high compared to the EU average and is
equal to 0.42 ha. As regards the UAA acreage, Poland is ranked as the 4th in the EU
following France (27.9 million ha of UAA), Spain (26.6 million ha of UAA) and
Germany (17 million ha).
The quality of UAA in Poland is rather poor as evidenced by a relatively low soil
quality index of 0.82 on average. Very good and good soils constitute only 11.5% and
poor and very poor quality soils – more than 34%. Grassland is characterised by soils
of particularly low quality, where land of very good and good quality (quality class 1
and 2) constitutes just 1.5%, whereas that of very poor and poor quality (quality class
5 and 6) – over 42%.
Beside low quality soils, the climatic conditions in Poland are worse than those
in western European countries due to which Polish agriculture, in terms of
agricultural area valorisation, occupies one of the last places in Europe.
At present farmland is utilised by numerous entities varying with regard to
ownership, farm size as well as type and scale of production. Almost 95% of
agricultural land is used by the private sector, of which 87% by private agricultural
holdings (family farms). Public sector, owning 5% of agricultural land, comprises
State Treasury farms and state legal persons, self-governments (gminas) and
agricultural holdings of mixed ownership with a dominating state-owned stake.
Figure 8. Structure of utilised agricultural area (UAA) in 1995 and 2003 (%)
1,6
12,7
8,3
Source: Agriculture in 2003. GUS.
1995
77,4
9
1,5
14,5
2003
5,8
arable land orchards meadows pastures
78,2

AGRICULTURE
A characteristic feature of Polish agriculture, composed of 1 853 000
agricultural holdings in total in 2003, is large differentiation of farm size from one
hectare to several thousand hectares. The latter can be found in the private and
public sectors alike. The largest agricultural holdings were established on the
former state-owned farms. The problem of farm fragmentation occurs solely in the
sector of private agricultural holdings (1 850 500 farms). The average size of a
private farm is 7.4 ha of UAA with significant regional differentiation. In southern
Poland the average farm size is 3.3 ha of UAA, whereas in the northwest – over 20 ha
of UAA. In 2000 in the EU-15 there were 6.7 million agricultural holdings, the
biggest number in Italy (more than 2 million), Spain (nearly 1.3 million), Greece (ca
800 000) and France (644 000). The average farm size in the EU was 18.7 ha,
however, in certain EU countries it was even smaller than in Poland: Greece (4.4 of
UAA), Italy (6.1 of UAA). Following 1990, the number of agricultural holdings has
been falling down systematically, however, mainly at the sacrifice of medium-size
farms, whereas the number of the biggest and smallest holdings has increased. In
2003 a decline in all groups of agricultural holdings was observed.
Figure 9. Structure of private farms by UAA size in 1995 and 2003 (%)
10,7
26,6
9,2
22,1
8
9,9
1995
2003
Source: Agriculture in 2003, GUS.
Total number of farms with UAA (ha)
1995 - 2047,6
2003 - 1850,5
33
21
33,7
25,8
10
31
44,1
UAA size on farms:
1995 - 13819,9
2003 - 13604,8
19,1
1995
4,7
2003 5
15,2
17,1
28,1
14,5
1-2 h 2-5 h 5-10 h 10-15 15 and more
21,2

Although farms of over 10 ha constitute only 19%, they utilise over 50% of UAA.
Enlargement of the existing farms is a permanent process supported by preferential
credits. In 2003 a growing interest in agricultural land purchases was noted, related
mainly to an anticipated increase in land prices following accession to the EU.
Table 3. Average prices of arable land and meadows in private trading in 1995 and 2003 (price for 1 ha)
Source: Agriculture in 2003. GUS, Warszawa 2004.
AGRICULTURE
w dt
Specification Year
PLN Rye Live
pigs for slaughter
Arable land on average 1995 2421 90,2 9,3
2003 5753 142,2 18,2
- good quality (wheat-beet) 1995 6712 161,7 18,6
2003 7960 196,7 25,2
- average quality (rye-potato) 1995 4920 118,5 13,7
2003 5801 143,4 18,4
- poor quality (sandy) 1995 2725 65,6 7,6
2003 3497 86,4 11,1
Meadows of good quality 1995 4883 117,6 13,6
2003 5168 127,7 16,4
- poor quality 1995 2753 66,3 7,6
2003 3049 75,4 9,6
Despite a rise in land prices, they remain at a low level. In 2003, as expressed in
Euro, the average price of arable land was 130.8 Euro/ha (181 Euro/ha for good
quality arable land), and that of good quality meadows – 117.5 Euro/ha.
On 16 July 2003, the Law of 15 April 2003 on the agricultural structure took
effect laying down the rules for trade in agricultural land. Its main objective is to
create conditions for improving the agrarian structure of farms and to counteract
excessive concentration of agricultural property. Upon land purchases and sales
preference is given to family farms, the maximum size of which has been defined at
300 ha of UAA, run personally by a private farmer with appropriate qualifications.
Real estate purchases by foreigners are provided for in the Law of 24 March
1920, pursuant to which they are required to obtain a permit from the Minister of
Internal Affairs and Administration for a property purchase and in the case of
agricultural land – an additional permit from the Minister of Agriculture and Rural
Development. The permit for a property purchase may be issued only when a
foreigner declares that he or she will utilise the land bought in the way as specified
in the land management plan. Upon the granting of permits preference is given to
persons of Polish origin and those with “permanent residence cards”.
In 2003, 248 applications for 1 225 ha were submitted to the Minister of
Agriculture and Rural Development. Permits were granted in the case of 178
applications for almost 480 ha. In 2003 most applications were lodged by German
11

citizens – 109, Dutch citizens – 36, Austrian citizens – 17 and French citizens – 13.
Foreigners were mainly interested in agricultural land located in
zachodniopomorskie, dolnoÊlàskie, ma∏opolskie, Êlàskie and pomorskie voivodships.
In addition, the Minister of Agriculture and Rural Development issued permits
to foreigners (a favourable decision on 42 applications for 1 350 ha) for the
acquisition of shares or stakes in companies. Overall, from 1990 to the end of 2003,
1 099 permits were granted for purchases of property of the area of 2 655 ha and 250
permits for the acquisition of shares or stakes in companies owning 5 212 ha.
Plant production
AGRICULTURE
In 2003 a tendency towards a decrease in the area sown to crops, observed since
1990 with varying intensity, was stopped. The overall area sown to crops in 2003 was
10 888 800 ha, i.e. it was reduced by 3 353 000 ha (23.5%) compared to 1990. The
major crops in Poland are cereals whose share within the crop structure has been
12

AGRICULTURE
Figure 10. Structure of particular crops in 1990 and 2003 (%)
Source: GUS
Area sown
1995 - 12 892
2003 - 10 889
Total cereals
Pulses for grain
Potatoes
Sugar beets
Oilseed crops (rapeseed, agrimony)
Fodder crops
Field vegetables
Other
11,8
permanently increasing. Another important crop is potato, though its cultivation has
been constantly reduced, fodder crops and leguminous plants for grain. The share
of vegetables within the crops structure has been stable.
The areas sown to particular crops were adjusted to sales possibilities and
profitability of particular types of agricultural production. Generally, a supply
surplus persisted on the market except for the years characterised by extremely
disadvantageous weather conditions.
Despite a high share of cereals in the area sown to crops, Poland has been a net
importer of the majority of cereals. Imports do not only cover high-gluten varieties
of wheat, for the cultivation of which there are no appropriate agro-climatic
conditions in Poland, but also fodder grains (especially maize) and malting barley.
In 2003 yields of major crops were lower in than in 2002. Yields in Poland are
approximately twice as low as those in the EU. Compared to certain EU member
states such as Greece and Spain, cereals yields in Poland are higher, however, they are
significantly lower than in France, Germany, Denmark and the UK. Apart from worse
agro-climatic conditions, the cause is a much lower usage of mineral fertilisers (by ca
30%) and plant protection products (several times lower) than on average in the EU.
A favourable change in plant production is an increase in production
concentration, i.e. larger area under particular plants on big farms. An increase in
average area sown to the majority of crops (e.g. during the eight years between the
Agricultural Censuses in 1996 and 2002 – from 4.16 ha to 5.16 ha for cereals, from 1.50
ha to 2.64 ha for sugar beets, from 0.22 ha to 0.38 ha for vegetables) was accompanied
by a rise in the number of farms growing cereals on the area of at least 10 ha (from 124
800 to 157 900 farms), potatoes (from 884 to 1 389 farms), sugar beets (from 1 300
1
13
3 4,7
1,1
4,2
2,6
7
8,4
2,2 3,9
6,4 1,8 2,6
1995
2003
66,5
75

AGRICULTURE
Table 4. Area, production and yields of major crops in 1996-2003
A area (‘000 ha)
B yields per ha (dt)
C production (‘000 tonnes)
Type of crops
Total cereals
1996-2000* 2000 2001 2002 2003
1996-2000 = 100 2002=100
area A 8796,0 8814,0 8820,0 8293,7 8163,3 92,8 98,4
yields B 28,6 25,3 30,6 32,4 28,7 100,3 88,6
production
Total wheat
C 25189,4 22340,6 26960,3 26877,6 23390,8 92,9 87,0
area A 2576,8 2635,0 2627,0 2414,2 2308,0 89,6 95,6
yields B 34,0 25,3 30,6 38,5 34,0 100,0 88,3
production
Rye
C 8772,0 8502,9 9283,0 9304,2 7858,2 89,6 84,5
area A 2275,4 2130,2 2002,3 1560,3 1479,3 65,0 94,8
yields B 22,7 18,8 24,3 24,6 21,4 94,3 87,0
production
Total barley
C 5160,0 4003,0 4863,6 3831,0 3172,2 61,5 82,8
area A 1142,6 1096,0 1071,1 1051,7 1016,1 88,9 96,7
yields B 29,9 25,4 31,1 32,1 27,9 93,3 86,9
production
Oats
C 3420,0 2783,3 3330,9 3369,9 2831,5 82,8 84,0
area A 590,0 565,6 531,0 605,2 526,9 89,3 87,1
yields B 24,4 18,9 24,6 24,6 22,4 91,8 91,1
production
Total Triticale
C 1437,5 1070,2 1305,2 1486,6 1181,9 82,2 79,5
area A 663,4 695,3 838,3 943,9 985,6 148,6 104,4
yields B 30,2 27,3 32,2 32,3 28,5 94,4 88,2
production
Potatoes
C 2006,0 1900,9 2697,9 3047,7 2811,6 140,2 92,3
area A 1292 1251 1194,2 803,4 765,8 59,3 95,3
yields B 183 194 162 193 179 97,8 92,7
production C 23620,0 24232,3 19379,0 15528,4 13731,5 58,1 88,5
Total rapeseed and agrimony
area A 409,6 436,8 443,2 438,9 426,3 104,1 97,1
yields B 20,7 21,9 24,0 21,6 18,6 89,9 85,7
production
Sugar beets
C 846,7 958,1 1063,6 949,5 793,0 93,7 83,2
area A 395,4 333,1 317,5 303,0 286,3 72,4 94,5
yields B 377 394 358 443 410 108,8 92,6
production C 14920,1 13134,4 11363,9 13432,1 11739,5 78,7 87,4
Source: GUS
14

AGRICULTURE
to 2 400 farms) and field vegetables on more than 5 ha (from 1 700 to 4 500 farms).
During accession negotiations the reference yield was established at 3.0 t/ha
resulting from average cereals yields in Poland within the base period, i.e. 1994/95 –
1998/99 (excluding two extreme years). The base area was enlarged by the area
grown to maize for silage and specified at 9 454 000 ha.
Starch production volume was agreed at 144 985 tonnes, sugar quota A at
1 580 000 t and sugar quota B at 91 900 t. The tobacco quota was established at
37 933 t, the quota of flax and hemp for fibre – 1 386 t, the dried fodder quota –
13 538 t and the quota of tomatoes for processing – 194 639 t.
A great variety of vegetables are produced in Poland. The main vegetable crops
are cabbage, carrots and onions.
15

Table 5. Area, yields and production of field vegetables in 1996-2003
A area (‘000 ha)
B yields per ha (dt)
C production (‘000 tonnes)
1) annual average, 2) parsley, leek, celeriac, radish, lettuce, rhubarb, asparagus, dill and other
Source: GUS
AGRICULTURE
1996-20011) 2001 2002
Absolute figures
2003
1996-20001) = 100 2002=100
Total A 243,6 239,9 171,3 198,4 81,5 115,8
C 5345,7 5195,4 3947,2 4419,5 82,7 112,0
Cabbage A 48,6 46,3 27,0 31,8 65,5 117,7
B 380 369 440 389 102,4 88,4
C 1846,0 1709,6 1188,5 1236,7 67,0 104,1
Cauliflower A 13,0 13,0 9,8 10,4 79,7 106,0
B 191 193 180 182 95,3 101,1
C 248,0 250,4 176,4 188,8 76,2 107,1
Onion A 33,8 34,0 27,7 32,5 96,2 117,2
B 203 194 211 209 103,0 99,1
C 684,4 659,5 584,9 678,3 99,1 116,0
Edible carrot A 31,8 33,1 27,8 30,3 95,2 109,0
B 279 279 249 276 98,9 110,8
C 887,7 921,9 692,1 834,6 94,0 120,6
Red beets A 21,0 19,7 10,2 13,5 64,4 132,2
B 240 237 304 247 102,9 81,3
C 503,1 466,4 311,2 333,5 66,3 107,1
Cucumber A 27,6 26,6 18,2 20,2 73,3 111,3
B 129 128 143 143 110,9 100,0
C 357,3 339,6 259,7 289,7 81,1 111,6
Tomato A 22,7 19,4 8,7 11,4 50,4 130,5
B 128 141 253 205 160,2 81,0
C 290,0 273,7 221,4 234,1 80,7 105,7
Other2) Specification
A 45,1 47,8 41,9 48,3 107,1 115,4
B 117 120 123 129 110,3 104,9
C 529,2 574,3 513,0 623,9 117,9 121,6
In 2003 the total harvest of field vegetables and those under cover amounted to 5 090 700 t
and was by 389 200 t (8.3%) larger than that in 2002. Crops under covers occupied
54 408 000 m 2 , including plastic-covered greenhouses - 59.8%, glasshouses - 39.2% and
hotbeds - 1%. In 2003 the production of vegetables planted under covers was equal to 671 200 t,
of which tomatoes accounted for 55.5% and cucumbers for 29.6%. There is significant
regionalisation of vegetable cultivation in Poland. Vegetables are mainly planted around large
agglomerations, i.e. in mazowieckie, ∏ódzkie and wielkopolsie voivodships.
In 2003 fresh vegetable exports were valued at USD 205.2 million, which meant
a 42% increase on the previous year. The volume of these sales increased by as much
16

AGRICULTURE
as 79% on the previous year and was equal to 459 000 t. Over 30% of exported
vegetables went to the EU. In 2003 exports of processed vegetables rose to 493 000 t
(by almost 20%) and were valued at USD 343 million (by 23% more).
Fruit production is also characterised by regionalisation, however, production
concentration is to a greater degree than in the case of vegetables connected with
tradition as well as soil and climatic conditions (Mazovia – region near the town of
Grójec, lubelskie voivodship, area near the town of Sandomierz).
Figure 11. Production of field vegetables, by voivodships, in 2003 (‘000 t)
Production of field vegetables
4256,2 Poland – total
500 to 612
300 to 499
100 to 299
53 to 99
Figure 12. Tree fruit production, by voivodships, in 2003 (‘000 t)
Tree fruit production
2875,5 Poland – total
300 to 1178
100 to 299
50 to 99
11 to 49
As regards tree fruit production, apples dominate, accounting on average for over
84% of the total fruit harvest. A vital part of both Polish tree fruit and berries is
exported as fresh and processed fruit. In 2003 fresh fruit exports amounted to nearly
460 000 t worth USD 150.9 million. Against 2002, sales increased in terms of
quantity and value by ca 31 200 t and USD 43 million respectively. A rise was also
noted in exports of processed fruit. In 2003 they were valued at more than USD 631
million (a 33% increase) and the sales volume was equal to 557 000 t (a 1%
increase). Nearly 18% of fresh fruit exports and 82% of processed fruit exports went
to the EU.
17
Zachodniopomorskie
Lubuskie
Zachodniopomorskie
Lubuskie
Wielkopolskie
DolnoÊlàskie
Wielkopolskie
DolnoÊlàskie
Pomorskie
Kujawskopomorskie
¸ódzkie
Opolskie
Âlàskie
Pomorskie
Kujawskopomorskie
¸ódzkie
Opolskie
Âlàskie
Warmiƒskomazurskie
Mazowieckie
Âwi´tokrzyskie
Ma∏opolskie
Warmiƒskomazurskie
Mazowieckie
Âwi´tokrzyskie
Ma∏opolskie
Podlaskie
Lubelskie
Podkarpackie
Podlaskie
Lubelskie
Podkarpackie

AGRICULTURE
Table 6. Area, yields and production of tree fruits and berries in 2000-2003
A area (‘000 ha)
B yields per ha (dt)
C production (‘000 tonnes)
Fruit type 2000 2001 2002 2003
Total tree fruits C 1837,1 2889,8 2603,5 2875,5
Apple trees
area A 165,1 166,4 168,5 159,3
yields B 88 146 129 152
production C 1450,4 2433,9 2167,5 2427,8
Pear trees
area A 18,3 18,4 14,3 14,5
yields B 45 42 64 53
production C 81,6 77,4 92,1 77,2
Plum trees
area A 31,7 31,6 26,9 25,0
yields B 34 42 38 44
production C 106,9 131,9 102,9 109,6
Sour cherry trees
area A 39,3 40 39 37,8
yields B 36 45 44 51
production C 139,6 179,7 173,1 191,1
Cherry trees
area A 21,1 11,9 11,9 11
yields B 32 36 34 40
production C 38,6 44,6 40,8 44,1
Other: peach, apricot,
walnut trees
area A 10,3 10,3 9,5 9,1
yields B 19 22 28 28
production C 20 22,3 27 25,8
Total berries 409,4 523,4 414,5 433,3
Strawberries
area A 62 65,8 38 43,9
yields B 28 37 40 30
production C 171,3 242,1 153,1 131,3
Raspberries
area A 12,6 12,9 13,4 13,3
yields B 32 35 33 32
production C 39,7 44,8 44,9 42,9
Currants
area A 33,5 34,5 42,3 38,9
yields B 44 51 37 49
production C 146,8 175,3 157,5 192,5
Gooseberry
area A 5,9 5,8 3,6 3,6
yields B 49 51 60 56
production C 28,6 29,6 21,7 20,3
Other: aronia, bilberry and other
area A 3,3 4,5 8,4 7,6
yields B 68 70 45 61
production C 23 31,6 37,3 46,3
Source: GUS
18

Fruit and vegetables are produced almost entirely on family farms.
Animal production
For many years the stock of cattle, sheep and horses has been going down,
whereas that of pigs has been fluctuating. The stock and production of poultry has
been increasing every year after a periodical fall following 1990.
Table 7. Livestock numbers – situation in June (thousand head of animals)
* pigs (situation at end-July)
Source: GUS
AGRICULTURE
Specification
1990 1995 2000*
2003*
1990=100
Cattle 10049 7306 6083 5489 54,6
of which cows 4919 3579 3098 2897 58,9
Pigs 19464 20418 17122 18605 95,5
of which sows 1837 1875 1577 1782 97,0
Sheep 4159 713 362 338 8,1
of which ewes 2564 450 223 185 7,2
Horses 941 636 550 333 35,4
19

AGRICULTURE
Farm animals are mainly raised in private agricultural holdings, which in 2003
kept 94.3% of the total cattle, including 95% of cows, 91% of pigs and 91% of sheep.
In consequence of cattle and sheep stock reduction, animal density per 100 ha of
UAA fell. In 2002 animal density was as follows:
• cattle – a decrease from 55.1 head/100 ha of UAA in 1988 to 32.6 head/100 ha
of UAA in 2002
• sheep – a decrease from 23.4 head/100 ha of UAA in 1988 to 2.0 head/100 ha of
UAA in 2002,
• horses – a decrease from 5.6 head/100 ha of UAA in 1988 to 1.9 head/100 ha of
UAA in 2002
and density of pigs increased per 100 ha of arable land from 135.5 head to 142.6
head.
On average, one farm keeps 1.9 head of cattle, 6.4 head of pigs, 0.1 head of sheep,
horses and goats, and 67.8 head of all kinds of poultry.
Preparations for accession to the EU and the consequent necessity of sanitary
and veterinary adjustments in the food processing sector and agricultural holdings
alike accelerated the process of concentrating slaughter animals and milk cows’
rearing and as a result led to the elimination of small producers from the market.
According to the 2002 General Agricultural Census, 935 200 agricultural
holdings were involved in cattle rearing and breeding (i.e. 31.9% of the holdings
surveyed of an area from 0.10 ha), of which:
- 48.4% kept 1-2 head (44.1% in 1996),
- 36.1% kept 3-9 head (44.3%),
- 10.2% kept 10-19 head (9.3%),
- 5.3% kept 20 and more head (2.3%).
As regards pig rearing and breeding, 760 600 agricultural holdings were
engaged in it (i.e. 25.9% of the total holdings surveyed), of which:
- 24% kept 1-2 head (28.9% in 1996)
- 28.8% kept 3-9 head (34.1%)
- 19.2% kept 10-19 head (18.5%)
- 28% kept 20 and more head (18.5%)
Despite an increase in the concentration of domestic animals’ rearing, it remains
low and does not damage the environment. Restrictive national regulations on the
environmental protection, controls of compliance with such regulations on pig farms
and non-issuance of permits to set up large industrial farms held up activities aimed
at excessive concentration of pig production.
Intensity of animal (particularly pig) rearing varies greatly in particular
voivodships.
20

AGRICULTURE
Figure 13. Cattle livestock per 100 ha of UAA, by voivodships, in 2003 (head of animals)
42 – 66,1
30 – 41,9
22,0 – 29,9
11,2 – 21,9
Figure 14. Pig livestock per 100 ha of UAA, by voivodships, in 2003 (head of animals)
Source: GUS
Cattle
33,9
Pigs
115,1
Poland – on average
200 – 262
100 – 199
70 – 99
47 – 69
Average for Poland
Productivity of beef cattle and milk cattle is much lower in Poland than the
average in the EU-15, whereas that of pigs is at a similar level. According to the 2002
data, yield of beef per head of cattle was on average 278 kg in the EU and 148 kg in
Poland, that of pork: 87 kg and 86 kg in the EU and Poland respectively and milk
yield per cow was 5 735 litres in the EU and 3 778 litres in Poland.
21
Zachodniopomorskie
Lubuskie
Wielkopolskie
DolnoÊlàskie
Zachodniopomorskie
Lubuskie
Pomorskie
Kujawskopomorskie
¸ódzkie
Opolskie
Âlàskie
Wielkopolskie
DolnoÊlàskie
Pomorskie
Kujawskopomorskie
Warmiƒskomazurskie
Mazowieckie
Âwi´tokrzyskie
Ma∏opolskie
¸ódzkie
Opolskie
Âlàskie
Podlaskie
Lubelskie
Podkarpackie
Warmiƒskomazurskie
Mazowieckie
Âwi´tokrzyskie
Ma∏opolskie
Podlaskie
Lubelskie
Podkarpackie

Table 8. Production of major animal products in 1990 – 2003
Source: GUS
Type of production
AGRICULTURE
Unit 1990 1998 1999 2000 2001 2002 2003
Total slaughter animals
by live weight, including: ’000 t 4493 4307 4356 4112 4107 4369 4776
- pigs ’000 t 2341 2601 2671 2501 2419 2601 2833
- cattle ’000 t 1428 805 710 635 562 523 591
- calves ’000 t 105 87 88 83 81 76 76
- poultry ’000 t 474 742 819 834 994 1134 1228
- horses ’000 t 37 55 52 45 36 30 30
- sheep ’000 t 96 8 8 7 6 5 6
Milk million l 15371 12229 11915 11543 11538 11527 11546
Eggs million units 7597 7276 7462 7621 8081 8925 9168
Wool T 14783 1496 1374 132 1339 1317 1218
For the second consecutive year a considerable increase in meat production and
supply was observed, which was advantageous to consumers (low prices) and
disadvantageous to livestock producers.
Progressing, though slow, concentration of cow rearing resulted in an increase in
milk yield per cow. In 2003 an average annual milk yield per cow rose to 3 969 litres,
i.e. by 67 litres against 2002. On the other hand, no increase was noted in the
number of eggs per laying hen, which was 203 eggs annually against 208 eggs in
2002. To encourage interest in the quality of milk sold to dairy plants, payments to
extra-grade milk have been made since 2002:
- PLN 0.07 per litre in 2002,
- PLN 0.04 per litre for Jan. – Apr. 2003,
- PLN 0.07 per litre in 2003 and until the accession date, i.e. 1 May 2004.
Resulting from these payments as well as growing requirements of the dairy industry,
the share of extra grade milk constituted 81.4% of the total milk bought in and the
number of extra grade milk suppliers accounted for 54% of the total suppliers in 2003.
Following accession to the EU, Poland abandoned payments to extra-grade milk
bought in and other support instruments for milk and meat processors not complying
with the Common Agricultural Policy. Poland negotiated the following rights to
animal production premiums: special beef premium - 926 000 head, slaughter
premium for calves - 839 500 head, slaughter premium for adult cattle - 1 815 400
head, suckler cow premium - 325 500 head, extensification premium – 1 251 600
head, a national envelope to increase cattle premium levels – Euro 27.3 million, ewe
premium - 335 800 head and Euro 355 000 to increase premiums for sheep.
Other forms of support such as intervention, storage aid, export subsidies, milk
and milk product consumption schemes at schools, subsidies to certain dairy
products will be applicable based on the rules established by the European
Commission.
22

Organic farming
AGRICULTURE
Food production by organic methods in the clean and safe environment,
without mineral fertilisers and synthetic plant protection substances, free of
antibiotics, growth hormones or genetically modified organisms is covered by
the special official control and certification scheme. Such scheme is run in
Poland by the Minister of Agriculture and Rural Development who gives
authorisation to certifying bodies, the Agriculture and Food Quality Inspection
as the supervisory authority of the authorised certifying bodies, and to certifying
bodies accredited at the Polish Accreditation Centre according to norm PN/EN
45011.
In 2004 six authorised certifying authorities are responsible for control and
certification of organic farming:
• Polish Testing and Certification Centre, Office for Testing and Certification,
Branch in Pi∏a, 64-920 Pi∏a, ul. Âniadeckich 5
• Organic Food Certification Unit PNG Sp. z o.o. in Zajàczkowo, 26-065
Piekoszów
• BIOEKSPERT s.c., 02-120 Warszawa, ul. Grójecka 109
• AGRO BIO TEST Sp. z o.o., 02-787 Warszawa, ul. Nowoursynowska 166
• COBICO Sp. z o. o., 26-065 Kraków, ul. Lekarska 1
• Ekogwarancja PSTRE Sp. z o.o. 20-834 Lublin, ul. Irysowa 12/2
23

Figure 13. Organic farms in Poland in 2003.
2286 farms
50 000 ha of UAA
Source: Agriculture and Food Quality Inspection
AGRICULTURE
Zachodniopomorskie
85
6876.07
Pomorskie
46
2448.86
Kujawskopomorskie
62
Warmiƒskomazurskie
126
6573.41 Podlaskie
122
2307.78
Lubuskie
20
1037.91
1165.16
Wielkopolskie
40
1817.23
¸ódzkie
Mazowieckie
249
2862.09
DolnoÊlàskie
110
4572 Opolskie
19
250.51
34
485.60
Âwi´tokrzyskie
382
Âlàskie 3422.77
33
Lubelskie
263
3393.05
217.49
Ma∏opolskie
407
5488.42
Podkarpackie
288
7010.03
Every producer involved in organic farming is inspected at least once a year by
the authorised certifying body which issues certificates for 12 months. In addition,
unannounced checks are carried out.
Figure 14. Number of organic farms inspected in Poland in 1990-2003
2500
2000
1500
1000
500
0
27 49 94
180
246 263 238
24
324
417
555
1419
1787
1977
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Source: Agriculture and Food Quality Inspection
2286

The number of organic farms has been continuously going up; in 2003 it
increased by 15.6% on the previous year. Nevertheless, the number of organic farms
in Poland remains small, considering that nearly all its soils meet high
environmental requirements, i.e. they are not polluted with heavy metals and other
industrial pollutants as well as fertilisers and pesticides.
Population and human resources in agriculture
According to the General Population and Housing Census and the Agricultural
Census, conducted in 2002, 10 474 500 people, i.e. 27.4% of Poland’s population,
lived in households connected with a farm (area of more than 10 ares) user. Eighty
per cent or 8 504 900 people were inhabitants of rural areas. This implies that
58.2% of the total rural population was connected with farming through a common
household.
As compared to the results of the 1996 General Agricultural Census, the number
of people in agricultural holdings fell by 1 084 700 or 9.4%. The number of persons
living off work in agricultural holdings is constantly decreasing, whereas that of
people maintained by farmers or with non-gainful sources of income (mainly old age
and disability pensions) is increasing.
As regards the education level, the situation improved, though the number of
people with tertiary, post-secondary or secondary education is much lower in rural
areas and the farming sector than in towns.
Compared to the EU-15 average, the structure of agricultural holding users in
Poland is more favourable.
Figure 15. Structure of agricultural holding users in the EU and in Poland (%)
13,3
12,3
56,8
AGRICULTURE
Poland UE
17,5
Source: GUS and FAPA (data for the EU – 1993, for Poland – 2002)
25
24,9
28,3
up tp 35 36-54 55-64 >65
years years years years
8,7
38,1

AGRICULTURE
The number of agricultural holding users with tertiary education almost
doubled (from 2.6% in 1996 to 5.1% in 2002). The percentage of users with post
secondary, secondary vocational and general secondary education rose considerably,
whereas that with primary, not complete primary and without school education fell
(from 49.7% in 1996 to 34.8%).
A reduction of employment in agriculture, an increase in labour efficiency
and elimination of hidden unemployment in agriculture are major issues to be
resolved in Polish agriculture, in order to improve, inter alia, incomes of farmers’
families.
At the same time abandoning farming or finding a new job is extremely difficult
due to high unemployment in Poland and will require the commitment of ample
funds in the long term.
Economic situation of agricultural population
Similarly as in other countries, farm owners have various sources of income. Due
to a decline in incomes from farming, observed practically in the whole period of
socio-economic transition, for a growing number of farmers’ families incomes from
work on own farms is not the main source of maintenance.
Figure 16. Population structure in agricultural holdings by sources of income in 1996 and 2002 (%)
Total population in agricultural holdings
(’ooo people)
1996 - 11559,9
2002 - 10474,5
Living off work;
- exclusively in agricultural holdings
- mainly in agricultural holdings
- exlusively or mainly in agricultural holdings
Living off:
- exclusively or mainly non-gainful employment
- maintained
- not established sources of living
26
32,8
38,8
28,5
1996
0,5
2002
Source: GUS, General Agricultural Census in 1996 and National General Census of Population and Housing in 2002.
0,4
25,8
16
12,3
1,5
1,6
20,6
21,2

AGRICULTURE
In Poland, there is a large share of persons living off non-gainful sources of income,
i.e. mainly old-age and disability pensions and persons maintained, mainly children.
The main cause of the fall in agricultural production profitability and farmers’
incomes were prices of agricultural products unfavourable for agriculture, actually
the disadvantageous relationship between the prices of such products and those of
agricultural inputs and other goods and services.
Figure 17. Dynamics of real gross income at the disposal in the household sector
Source: GUS
140
120
100
80
60
40
20
0
1995=100
1996 1997 1998 1999 2000 2001 2002
Against other social groups, the pay for work in agriculture is much lower. As
compared to the remuneration of employees in other sectors of the economy,
farmers earned 36% less.
A representative survey of household budgets shows that a share of income
generated from hired labour and self-employment remains at a low level in farmers’
households.
Figure 18. Structure of agricultural families’ income per capita in 1995 and 2002
Source: GUS
Total households Farmers’ households
Total income generated from private farm
Total income generated from hired labour
Total income generated from self-employment
Social benefits
Other income
0,6
1,4
1,4
0,1
27
19,6
19,9
1995
2,2
2002
3
124,7
48,7
76,2
75,6

AGRICULTURE
The level of farms’ incomes and the share of particular categories in the
total income vary, mainly depending on the area size and the type of
production.
Off-farming activities in agricultural holdings
The General Agricultural Census conducted in 2002 showed that economic
activities (farming and off-farming) in the form of self-employment were pursued
by 2 281 600 agricultural holdings of an area of 10 ares and more, i.e. 77.8% of the
total farms. There were 2 280 400 private farms and 1 200 public sector farms
carrying on business. Holders of 651 600 farms (22.2%) were not involved in
farming (their whole UAA was left idle and they did not have any farm animals),
neither in off-farming activities, and the source of their incomes were, inter alia,
social benefits and hired labour.
Users of 363 400 agricultural holdings, i.e. 12.4% of all farm users against 8.1%
in 1996, were engaged exclusively or additionally in off-farming activities. Compared
to 1996, in 2002 the number of such farms went up by 46%, however, it is still too
small.
Out of the total number of farms involved in non-agricultural business, 104 000
or 28.6% temporarily suspended their agricultural activities, whereas 259 400
pursued farming and off-farming activities simultaneously.
28

AGRICULTURE
Figure 19. Agricultural holdings involved in off-farming activities, by area, in 1996 and 2002
Agricultural holdings involved in off-farming
activities (’000)
1996 - 249,0
2002 - 363,4
Up to 1 ha
1-5 ha
5-10 ha
10-20 ha
20-50 ha
50 ha and more
Source: General Agricultural Census in 1996 and 2002.GUS.
12,0%
14,0%
Agricultural holdings involved in one of the off-farming activity sections
dominate (93.2%), while those engaged in two sections make up 6.2% and those in
three or more sections only 0.6%.
One of major businesses conducted by farms is agro-tourism, eco-tourism and
rural tourism, whose development varies depending on the region. Of decisive
importance is the region’s attractiveness. Agro-tourism and rural tourism are
concentrated in the mountainous areas, at the seaside and in the vicinity of lakes,
rivers and forests.
At present holiday makers in rural areas take into account the criteria less
appreciated so far, such as:
– protected flora and fauna enabling the development of nature tourism
individually,
– nature reserves enabling nature observation combined with filming and
photographing as well as areas characterised by historically formed distinct
regional features with well-preserved artisan traditions, e.g. sculpture, pottery,
smithery, bee-keeping, etc.,
– proximity to health resort communes (48 in Poland) – a possibility of
benefiting from professional treatment while preserving anonymity and
enjoying leisure time in a family atmosphere full of peace and quiet,
– a significant element of rural cultural heritage – taking part in hunting, feasts
organised in cottages in rural areas,
– staying at an ecological farm where food is organic, as confirmed by the
29
37,4%
1996
7,0% 2,7%1,6%
8,0%
2002
3,2%1,5%
43,5%
39,3%
29,8%

AGRICULTURE
EKOLAND certificate, as well as the whole environment (building, on-farm
treatment plant).
The data below indicate the development of agro-tourism and rural tourism
within recent years: in 1990 there were as little as 590 agro-tourism households,
whereas in 2002, according to the General Agricultural Census, there were 12 000
of such households of which 4 000 private rooms on farms. There are 128 000 beds
in these private rooms from the hostel level to a luxurious suite at attractive and
competitive prices.
Most agricultural holdings ensuring agro-tourism and rural tourism services are
located in ma∏opolskie (3 433), warmiƒsko-mazurskie (2 500), pomorskie (2 392)
voivodships.
Around 600 agro-tourism farms obtained categorisation from the Polish
Federation of Rural Tourism “Guest Farms”.
Further information on agro-tourism and rural tourism may be found on the
website (www.agritourism.pl). Every year the rural tourism atlas Polish Villages
Invite You and the map Rural Tourism are published.
30

AGRICULTURE
Organisation of the agricultural market
For many years measures have been carried out in Poland to establish market
institutions involved in the professional organisation of wholesale trade in agri-food
products and to set up agricultural producer groups co-operating with such
markets.
Resulting from the implementation of the ministerial programme and
government programmes to establish and develop wholesale markets and the
Warsaw Commodity Exchange – stages 1 and 2, over a dozen or so wholesale
markets, established in the form of joint stock companies, operate in Poland. The
main shareholders of these companies are the State Treasury, Agency for
Restructuring and Modernisation of Agriculture, traders, self-government
organisations, agricultural producers and other bodies.
The operation of wholesale markets contributes to an improvement of
agricultural holding effectiveness by ensuring:
– greater price stabilisation,
– supply and demand equilibrium,
– introduction of standards,
– reduction in the number of intermediaries in trade and consequently an
increase in producers’ incomes,
– stimulation of a process of adjusting agricultural production to market
requirements,
– establishment of a producer market (supply organisation).
Thanks to co-ordination and concentration of supplies from producers and
technical and logistics capabilities, wholesale markets offer large and homogenous
product batches. They also offer services related to the promotion and advertising
of agri-food products, quality control, standardisation, processing and packaging.
The pan-regional wholesale markets built from scratch in Poznaƒ, Warsaw
(Bronisze), Gdaƒsk, Wroc∏aw and Lublin (Elizówka) are state-of-the-art facilities,
fulfilling European requirements. In addition, there are also local markets which were
often established as a result of adaptation of the existing facilities. The wholesale
markets are not only a trading place but also information databases on supply and
demand. The markets are now starting establishing logistics centres that will
facilitate trade in commodities in the area within the wholesale market influence.
The proper functioning of the wholesale markets largely depends on the
development of producer groups and their entry on the wholesale markets. The
development of producer groups in Poland – taking into account particularly large
fragmentation of agricultural holdings – is the primary task aimed at the proper
operation of the Polish agricultural market and adaptation to EU requirements,
especially those concerning the organisation of the fruit and vegetable markets.
The process of setting up agricultural producer groups was commenced in
Poland in 1992-1993. It was preceded by a rapid, fourfold fall in the share of the
cooperative sector in buying in agri-food products and a five to sixfold fall in food
processing.
31

AGRICULTURE
According to the Accession Treaty, agricultural producer groups (excluding fruit,
vegetable, mushroom and fish producers whose groups operate pursuant to subsector
arrangements) are entered in voivods’ registers and as from 1 May 2004 to 31
December 2006 they will receive financial assistance resulting from the measures of
the Rural Areas Development Plan.
Adopted on 16 November 2000, the Law establishing warehouses and amending
the Civil Code, the Code of Civil Proceedings and other laws (Dz. U. (OJ) No 114,
item. 1191) provides for the creation of new institutions – warehouses. It lays down
the rules of their operation and issuance of warehouse receipts and trade in such
receipts.
Based on contracts with the entities giving their commodities for storage,
warehouses store such goods and are authorised in certain circumstances to issue
securities – warehouse receipts. The objectives of this institution are:
– to improve and secure trade in commodities,
– to introduce a new basis for credit.
Warehouses are a significant factor in regulating trade in agri-food products.
They ensure the preservation of the commodity ownership, permitting at the same
time to make payments and to contract credits due to future sales of the stored
commodities. Regulations laying down the rules for establishment and supervision
of warehouses guarantee the proper operation of such institutions. The Minister
competent for agricultural markets is responsible for supervision of agricultural
goods warehouses.
By the end of June 2004 permission to operate warehouses was granted to 34
entities that have the total storage capacity of 455 000 t. The warehouses are
authorised to store cereal grains, rape seeds and papilionaceous plant seeds.
32

FOOD INDUSTRY
General information about the food industry
Food industry, comprising the production of foodstuffs and beverages as well as
tobacco products, accounts for 1/5 of the total sales of the Polish industry. There are
over 30 000 food processing establishments, however, in 2003 only 1526 enterprises
employed 50 and more people and ca 1 250 medium-size companies employed 9-50
people. The remaining establishments have small production capacities and operate
on local markets. In 2003 the number of the smallest and the biggest enterprises fell
down, whereas that of medium enterprises remained stable.
The majority of the Polish food industry is privately owned. In 2003 within the
group of the biggest enterprises (50 and more employees) as little as 7.7% of
product and raw material sales came from the public sector establishments.
Within the last three years the food industry output has been increasing faster
than domestic demand and agricultural production. This implies that the share of
the industry in the fulfilment of the demand and utilisation of agricultural produce
is increasing.
One of the major factors of the food industry development has been export, in
particular within the last two years. As compared to the period prior to the economic
transformation, the output of food, beverages and tobacco products rose by 35%.
33

Table 9. Sold output 1) , average employment and remuneration in 2003 in enterprises employing 50 and more
employees
1) at current prices; dynamics at constant prices
Source: GUS
FOOD INDUSTRY
Sold output Average employment Average monthy
Sections, subsection and groups gross remuneration
PLN million 2002=100 (’000) 2002=100 PLN 2002=100
Industrial processing
Production of foodstuffs
362253,0 113,5 1534,8 99,9 2197,83 103,0
and beverages
Production, processing and preservation
75340,5 108,0 286,9 101,1 2086,08 101,7
of meat and meat products 18268,5 114,2 82,4 111,3 1538,57 100,9
Processing and preservation of fish 1845,5 137,9 8,9 105,5 1556,79 103,3
Fruit and vegetable processing
Production of oils and fats of plant and
7647,9 117,4 30,6 102,8 2061,31 103,6
animal origin 2049,4 99,7 2,8 84,2 3317,37 105,4
Production of dairy products
Production of grain milling products,
12210,4 103,9 44,3 96,5 1985,07 103,9
starch and starch products 2462,9 107,8 6,8 100,4 2269,98 101,3
Production of animal feedingstuffs
Production
5202,0 105,4 6,5 94,2 3888,61 103,1
of other foodstuffs 14511,7 100,9 75,8 94,4 2169,02 103,1
Production of beverages 11142,2 105,3 29,0 101,4 3203,80 102,5
Tobacco products output 3313,1 102,5 6,2 84,2 4426,37 107,7
As regards average monthly remuneration, it amounted to ca Euro 500 (prior to
taxation) in the industrial processing sector, Euro 474 in food and beverage
establishments and Euro 1 006 in the tobacco industry.
Despite a rise in the output intended for export, it is mainly sold on the domestic
market. The share of exports in the total revenues of the food industry increased
from 6.9% in 2002 to 8.8% in 2003. Although multinational companies have a
significant share in the tobacco industry, exports of tobacco products remained at a
low level (2.5% in 2003 against 1.2% in 2002.
Poland’s major exports are fish products (36.8%) and fruit and vegetable
products (28.6%), including processed potatoes (25.1%) and processed fruit and
vegetables (33.8%).
An important feature of the food industry development within the recent years
is accelerated industrialisation of agricultural produce processing (an increase in
large industrial establishments). This is an effect of speeding up alignment with
EU standards and conditions for conducting business operations on the European
market. Despite a considerable progress, the share of the food industry in the
utilisation of agricultural output remains low and is equal to ca 25-30% in
vegetable and potato processing sector, nearly 50% in the case of the slaughter of
34

FOOD INDUSTRY
animals for slaughter, ca 65% in cereals and milk processing and over 80% in fruit
processing.
Adjustment processes contributed to a significant investment recovery
after a 3-year decline in expenditure on fixed assets. In 2003 investment
expenditure increased by approximately 30% and was equal to more than
USD 1.5 billion and the investment rate rose from 5.8% in 2002 to 7% in 2003.
Investment outlays were allocated mainly for modernisation processes, adaptation
to sanitary and veterinary as well as quality requirements and environmental
protection.
Economic situation of the food industry
In 2003 the performance of food industry deteriorated, though it continued to
operate at a profit. Losses were incurred by the public sector, where the cost level
index was 103.8% against 97.3% in the private sector. The performance of food and
beverage industry is much better than that of the tobacco industry.
Table 10. Costs and profitability of food industry in enterprises employing 50 persons and more
in 2002-2003
Cost Profitability*
Specification
level index Gross net
2002 2003 2002 2003 2002 2003
Total food industry
including:
97,3 97,7 2,8 2,3 1,8 1,4
- public sector 100,2 103,8 0 -3,1 -0,8 -3,9
- private sector 97,0 97,3 3,1 2,7 2,1 1,8
Production of foodstuffs and beverages,
including:
97,0 97,6 3,1 2,5 2,0 1,5
- public sector 100,3 103,9 0 -3,2 -0,8 -4,0
- private sector 96,6 97,0 3,4 3,0 2,3 1,9
Manufacture of tobacco products
including:
99,2 99,1 0,8 0,9 0,5 0,7
- public sector 99,4 99,6 0,6 0,4 0,3 0,3
- private sector 99,2 99,0 0,8 0,9 0,5 0,7
* relation of the gross or net financial result to revenues from all operations
Source: GUS
Out of 1 526 food industry establishments employing 50 and more persons,
74.2% generated net profit (79.9% in 2002). A share of food and beverage
enterprises operating at a profit is much bigger in the private sector (76.3%) than in
the public sector (42.2%). As opposed to it, the share of the private sector tobacco
enterprises that generate a net profit is smaller (42.9%).
35

As regards the processing of products of animal origin, in 2003 profitability
improved in dairy, poultry and fish industries and deteriorated in the meat
industry. As for the processing of plant products, financial results of
enterprises deteriorated, in particular in the sugar industry in which losses
exceeded 10%.
Secondary processing (non-alcoholic beverages, bakery goods, spices, dietary
supplements, tea, coffee and sugar confectionary industries) and production of
stimulants (spirit, brewery and tobacco industries) make relatively high profits with
the exception of the winery industry.
Food industry output
For many years, meat, dairy product and beverage sectors have had the biggest
share in the sales pattern of the food industry.
Figure 20. Pattern of product group sales in food industry in 2000 and 2003 (%)
20,9
14,4
Source: GUS
5,9
5,1
3,4
2000
meat products
fish products
fruit and vegetable
oils and fats
dairy products
15,7
FOOD INDUSTRY
21,5
2,1
8,2
2,8
36
18,5
14,2
6,6
3,1
4,2
2003
15,5
grain milling products and starch
animal feedingstuffs
other foodstuffs
beverages
tobacco products
23,2
2,6
9,7
2,4

The quantity of goods produced by the food industry is adapted mainly to
demand on the domestic market and export capabilities.
In 2003 the output of meat products, most of dairy products, chocolate and
chocolate articles, spirit products, feedingstuffs and cigarettes increased, whereas
that of sugar, bakery goods and vegetable oils decreased.
Consumption of foodstuffs
FOOD INDUSTRY
Incomes of the population determine the demand for food and are a derivative of
the growth in GDP, which increased by 3.7% in 2003 compared to 2002. The total
food consumption rose by 2.5%, the average remuneration in the enterprise sector
increased in real terms by 2% and the average old-age and disability pensions from
the non-agricultural social insurance system – by 4.1%. The consumption of
particular products fluctuated depending on their prices. More favourable supply of
products of animal origin impacted the rise in the consumption thereof, whereas the
consumption of certain products of plant origin decreased slightly due to the worse
harvest of cereals, rapeseed and potatoes. An increase in fruit production did not
contribute to a rise in the consumption thereof.
Table 11. Annual consumption per capita of staple foodstuffs in 1995-2003
Specification
unit
1995 2000 2001 2002 2003*
Processed cereals kg 120 119 119 120 120
Potatoes kg 138 132 130 131 130
Vegetables kg 120 120 121 111 110
Fruit kg 40,9 51,1 57,1 56,7 54,5
Meat and offal kg 63,4 65,4 65,9 69,5 72,4
including: total meat kg 59,4 61,4 61,8 65,3 67,7
- pork kg 39,1 38,0 38,2 39,2 41,2
- beef kg 8,7 6,8 5,5 5,2 5,8
- poultry meat kg 10,2 14,1 17,0 19,8 19,7
Edible oils by
kg
marketable weight kg 25,3 28,4 29,5 30,8 29,2
including: animal fats kg 7,2 6,6 6,7 6,7 6,9
- vegetable oils kg 14,4 17,6 18,5 19,5 17,6
- butter kg 3,7 4,2 4,3 4,6 4,7
Cow’s milk l 195 191 187 182 181
Hen eggs (units) 154 186 198 211 214
Sugar kg
41,9 41,2 41,2 43,6 40,3
Source: GUS, Statistical Yearbooks; Gulbiecka, preliminary estimates of the Institute of Food and Agriculture Economics, data for 2003
As for the meat pattern consumption in 2003, the previous years’ changes
continued, i.e. a decline in beef and a rise in poultry meat consumption.
37

FOOD INDUSTRY
Consumption of various products differs among main socio-economic groups of
households, though an average energy and nutritious value of a daily food intake
differs insignificantly. In addition, food consumption varies depending on the family
size, the education level, the place of residence, etc.
There are marked differences in the consumption level of staple foodstuffs
between Poland and the UE and among particular EU member states. The
consumption of staple foodstuffs in Poland, excluding fruit, beef, fish and milk,
is within the bracket to be found in the EU. The consumption of the
aforementioned products is lower, mainly due to their relatively high prices or
culinary habits. Moreover, the consumption eggs, vegetable oils and animal fats
and meat is lower, excluding pork, the consumption of which is higher. It can be
stated that a cheaper nutrition model is used in Poland than on average in the EU.
At the same time relatively cheap food in Poland offsets a difficult income
situation, enabling the consumption of majority of products at the level close to
that of the EU.
38

Programme PD˚, Try Fine Food
FOOD INDUSTRY
On 1 May 2004 the Minister of Agriculture and Rural Development took a
decision to embark on a new Programme, PD˚ Try Fine Food to replace the hitherto
programme Polish Fine Food.
The main objective of the programme is to inform consumers of high
quality food products. The programme is voluntary and open to each
entrepreneur from the European Union. The PD˚ logo will be assigned only to
those products which comply with the criteria established by the Scientific
Council for Food Product Quality composed of independent experts. The PD˚
Tr y Fine Food logo is to help the consumer to knowingly choose the product
suitable for him or her. Simultaneously, the objective of the Community food
policy is being pursued, i.e. expanding the range of diverse products of high
quality on the Common Market.
The logo’s aim is also to enhance consumer’s confidence in the food product
through information on its high and stable quality.
It is only food producers that have a right to submit applications for PD˚ Try
Fine Food logo and the application is free of charge.
POZNAJ DOBRA ZYWNOSC
The Programme covers the following groups of products:
1) meat and meat products
2) eggs and egg products
3) milk and milk products
4) fruit and vegetables (including potatoes), mushrooms and preparations
thereof,
39

FOOD INDUSTRY
5) cereals and preparations thereof, including bakery goods
6) fish, seafood and preparations thereof
7) non-alcoholic beverages
8) mineral waters
9) honey
10) sugar confectionary and cakes
11) herbs and spices
12) consumer fats and oils
13) mixed and highly processed products based on the above mentioned raw
materials
The products that are awarded the PD˚ Try Fine Food logo are inspected by the
Scientific Committee for Food Product Quality through numerous independent
control bodies.
In order to maintain the invariably high quality of the products with the logo and
reliability of the origin of raw materials, the Programme envisages the maximum
periods of the logo validity:
- up to three years, when awarded for the first time,
- up to five years, if continued.
Prior to the expiry of the logo validity, entrepreneurs can apply for the logo
renewal. Then the products will undergo a renewal procedure as specified by the
Scientific Council for Food Product Quality. Should they fail to comply with the
quality requirements, the logo may be withdrawn by the Scientific Council prior to
the expiry of its validity.
Protection of regional and traditional food
The idea of protection and promotion of regional products is to save
disappearing traditions typical of the culture of a given region or country.
In 1992 the system of registration and protection of regional and traditional
product designations was set up. The product whose origin is guaranteed by the EU
promotes the image of the place it comes from, thereby inviting consumers to visit
the region.
Assigning designations confirming high quality of agri-food products originating
in particular regions and those produced using traditional methods is one of the key
ways of pursuing quality policy in the EU. The designation is to confirm the
authenticity of a given product and to guarantee its quality as well. Thanks to its link
with the region, the purchase of the product means the beginning of the contact with
the exceptional culture, tradition and history of a given area.
To protect Europe’s culinary heritage, a special legal system was established
to guarantee the compliance with the declared method of manufacturing
traditional products. To this end, legal instruments, i.e. three types of
designations, were created to confirm a traditional or regional character of the
product.
Geographical indications, designations of origin and Traditional Speciality
40

FOOD INDUSTRY
Guaranteed certificates are prestigious marks recognised by consumers in the EU,
strongly influencing the demand side.
Protected Designation of Origin (PDO) means the name of a region or a
specific place or, in exceptional cases, of the country used to describe an agricultural
or food product originating in that region, specific place or country.
Protected Geographical Indications (PGI) means the name of a region or a
specific place or, in exceptional cases, of the country used to describe an agricultural
or food product originating in that region, specific place or country. The product is
characterised by special quality, reputation or other properties attributable to its
geographical origin.
The essential difference between the protected designation of origin and the
protected geographical indication lies in the strength of the product link with the
place of its origin. Protected designations of origin are used to mark products very
closely linked with a given geographical area. If a protected designation of origin is
used, both the production of raw materials and the processing until the final product
must take place in a given (defined) area. In the case of the protected geographical
indication the product must be produced in the region specified in its indication,
however, as distinct from the protected designation of origin, only one of the three
production stages (production or processing or preparation) must take place in a
given area.
The following products are covered by protected designations of origin and
geographical indications: fresh meat, meat products (salted, smoked, cooked, etc.),
cheeses, other products of animal origin (eggs, honey, milk products not containing
butter), oils and fats (butter, margarine, oil, etc.); fruit, vegetables, cereals (whether
processed or not), fresh fish, molluscs, crustaceans and other products based on
fish, sugar confectionery, bread, cakes, cookies, biscuits and other bakery articles,
beer, beverages from plant extracts, other food products and beverages.
In addition, the following foodstuffs are covered by protection: beer, beverages
made from plant extracts, bread, cakes, cookies, biscuits and other sugar
confectionery, natural gums and resins, hay and volatile oils.
As regards wines and sprit drinks, they are not covered by protection.
Traditional Speciality Guaranteed certificate (TSG) means recognition by
the Community of a special (traditional character) of the product designation
through its registration.
The European Commission keeps the Register of Traditional Speciality
Guaranteed Certificates for Agricultural and Food Products containing designations
of agricultural and food products whose special character was recognised at the
Community level.
What is meant by “special character” are properties or a set of properties which
make the agricultural or food product clearly distinct from other similar agricultural
or food products of the same category.
41

FOOD INDUSTRY
Graphic symbols confirming a special character of the product:
Protected Designation of Origin
Protected Geographical Indication
Traditional Speciality Guaranteed
To obtain one of the aforementioned designations creates an opportunity for its
recipients – producers as their products acquire prestige. Consequently the demand
and production of such protected articles increases.
The products protected as described above guarantee the purchaser permanent
high quality and preservation of centuries old recipes used during their
manufacture. So far approximately 650 products with such designations have been
registered.
Given a wealth and variety of Polish culture, a great interest in this subject
should be expected. Producers associated in groups will aim at preserving the
tradition of manufacturing products typical of their geographical areas such as
mountains or ethnically different regions (Silesia, Podhale, Kaszuby), where folk and
culinary traditions have been maintained for centuries. Confirmation of the product
traditional or regional character by marking it with one of the three indications will
contribute to increased demand for such product and encourage interest in the very
idea of such product protection.
For detailed information, see website www.minrol.gov.pl.
42

General Information on Fisheries
FISHERIES
Fisheries in Poland cover the Baltic Sea fisheries, deep sea fishing and inland
fisheries.
The coastline, including the Hel peninsula, the Szczecin Bay and the Vistula
Bay, is 788 km long. The internal sea waters occupy 1 991 km 2 , and the
territorial sea – 8 682 km 2 . The Baltic Sea coastal zone comprises 36 gminas in
18 poviats in pomorskie, zachodniopomorskie and warmiƒsko-mazurskie
voivodships.
The Baltic Sea salinity is very low; the further from the Danish Straits, the lower
its average salinity. Most of Polish rivers are situated in the Baltic Sea basin. Poland’s
water system is characterised by a low number of dam reservoirs and their small
capacity.
Poland is a country with a relatively large number of lakes; there are more than
7 000 reservoirs of more than 1 ha and their total area is over 280 000 ha.
In 2003 supply of fish for human consumption on the domestic market was over
400 000 t, a 4.3% rise compared to 2002, however, a nearly 17% decline compared
to 2000. For many years Polish sea fishing has shown a downward tendency, which
has been partly offset by import growth. Inland fisheries have remained at a stable
level.
Table 12. Fish balance in Poland, by live weight (‘000 t), in 1995-2003
Specification
1995 2000 2001 2002 2003
Sea catches 405,2 220,5 230,7 204,4 160,3 39,6 72,7 78,4
including: Baltic Sea 129,6 141,1 156,6 146,9 142,7 110,1 101,1 97,1
- deep sea
- buying in of fish in deep sea
275,6 59,0 50,8 57,5 17,6 6,4 29,8 30,6
- fishing grounds - 20,4 23,3 - - . . .
Inland fisheries and acquaculture catches 45,0 55,0 54,0 52,0 54,0 120,0 98,2 103,8
Imports 316,1 456,2 441,0 374,1 424,5 134,4 93,1 112,5
Exports
including export
327,6 249,8 246,8 246,1 238,0 72,6 95,3 96,7
- from vessels 196,8 86,7 80,6 88,2 66,3 336,9 76,5 75,2
- from land
Supply of fish for human
130,8 163,1 166,2 157,9 171,7 131,3 105,3 108,7
consumption on the domestic market 438,7 481,9 478,9 384,4 400,8 91,4 83,2 104,3
Source: Institute of Agriculture and Food Economics (IERiG˚) based on the Marine Fishery Institute (MIR) and Inland Fisheries Institute (IRÂ) data.
Fish consumption in Poland is rather low. In 2003 it was equal to 10.5 kg per
capita and was on average by 56.1% lower than that in the EU-15 on average
(ranging from 11 kg in Austria to 60 kg in Portugal on average in 1997-1999) and by
35.2% lower than on average in the world.
43
1995=100
2003
2000=100 2002=100

In new EU member states that joined the EU together with Poland fish
consumption ranges from 3.8 kg in Hungary to 30.1 in Malta.
Sea fishing
FISHERIES
The collapse of sea fishing is related to an almost total elimination of the stateowned
deep sea fishing fleet, reduced in the 1990s from 86 vessels to 5 trawlers at
end-2002 and 4 trawlers at end-2003, owned by PPPiH “Dolmar” S.A., of which 3
were chartered by foreign entities and are not engaged in fishing for Poland. The
collapse of the Polish deep sea fishing was connected with the worldwide process of
fishing grounds appropriation by coastal countries taking place from 1970s, which
was legally sanctioned by the Law of the Sea Convention in 1982.
44

Following 1990, the pattern of marine fish catches changed. Even in 1995 cod
was dominating, whereas at present it is sprat.
Figure 21. Pattern of marine fish catches by major fish species (%)
11,3
Total fish (’000 t)
1995 – 405.2
2000 – 200.1
2003 – 160.3
11,4
7,3
In 2003 Baltic Sea catches accounted for 89% of total catches as compared to
32% in 1995. The maximum Baltic Sea catches are dependent on the size of annual
fishing quotas determined by the International Baltic Sea Fishery Commission for
four fish species: sprat, herring, cod and salmon.
Inland fisheries
1995
Source: Ministry of Agriculture and Rural Development
FISHERIES
70
Production of inland fisheries covers:
- rearing and breeding carp and trout,
- professional lake and river fishing,
- amateur fishing in inland waters (angling).
According to the General Agricultural Census data, over 10 000 agricultural
holdings were involved in fish production in 2002, i.e. by 25% fewer than in 1996. In
accordance with the Inland Fisheries Institute information for 2003:
- there were ca 150 commercial carp production facilities
- there were ca 600 farms utilising lakes for fishing purposes
- there were ca 300 large carp production facilities.
In 2003, about 1 million people were engaged in angling and 1 500 companies
provided services for angling.
45
42,1
16,5
17,5
52,5
2000
2003
cod herring sprat other
10,8
29,1
12,3
19,2

The total area of inland waters is 566 000 ha, of which 85% is utilised for fishing
purposes.
Source: Institute of Agriculture and Food Economics (IERiG˚), A. Wo∏os, PZW, ANR, GUS data
Carp and trout are dominant species in inland fisheries production; they account at
present for 60% of the total inland fisheries production, whereas angling – for 26.5%.
Acquaculture in Poland (mainly carp ponds and trout production centres) differs
significantly from that in the EU where marine aquaculture dominates and inland
waters acquaculture covers mainly trout production.
Poland is one of the largest carp producers in Europe (a 15% share) and carp
output is by ca 5 000 t greater than that of the whole EU-15.
Table 14. Sales of freshwater fish in 1995-2003 (‘000 t)
Source: IERiG˚ based on IRÂ data
Fish processing
FISHERIES
Table 13. Area of waters utilised for fishing purposes in 2003 (‘000 ha)
Specification
Total Poland
including:
owned by the Agricultural utilised by the Polish
Inland waters suitable
Property Agency Angling Union
for fishing 566 317,3 214,6
of which those utilised for fishing 480 299,7 214,6
Rivers 140 - 89,1
of which those situated in the mountains 26 - 16,5
Lakes 280 270,2 69,6
Dammed reservoirs 50 - 46,9
Ponds
Other waters (clay-pits,
56 47,1 -
old river-beds, small waters) 40 - 9,1
Specification 1995 2000 2003
Total sales 28,19 37,98 35,48 125,9 93,4
including: carp 19,60 23,50 21,40 109,2 91,1
of which: export 0,52 0,24 0,25 48,1 104,2
Trout 4,99 11,45 11,00 220,4 96,1
of which: export 1,18 1,98 3,15 266,9 159,1
Following 1990 a rapid growth in the number of private fish processing
establishments was observed. In mid-1990s the largest number thereof was recorded,
i.e. ca 400 establishments, however since then it has fallen down to reach 313 at end-
2003. Employment in these establishments was reduced from 16 000 to 12 500 people.
46
2003
1995=100 2000=100

FISHERIES
As in the agri-food processing sector, fish processing establishments embarked
on numerous investment projects with the view to harmonisation with EU sanitary
and veterinary requirements.
In 2003 the fish processing industry output was 260 500 t valued at PLN 2 350 million,
i.e. by 3.9% more in terms of tonnage and by 3.4% less in terms of value than in 2000.
Figure 22. Pattern of processed fish production in 2000 and 2003 (%)
22
22,4
5,7
2000
Source: Marine Fishery Institute (MIR)
9,3
13,6
Fresh and frozen fish
Fresh and frozen fillets
Salted fish
Smoked fish
21,1
Fishery policy and fish market regulations
5,9
The Total Allowable Catch for Poland (as determined by the International Baltic
Sea Fishery Commission) is distributed among particular vessels or groups of
vessels in conformity with the Minister’s of Agriculture and Rural Development
Regulation.
In April 2003 the Regulation of the Ministry of Agriculture and Rural Development
(MARD) laying down the maximum number of vessels authorised to fish in the Polish
area of the territorial sea and the Polish economic zone took effect. The total number
of fishing vessels authorised to fish in the Polish sea area was established at 994 (by 14
fewer than in the previous year), including 8 vessels of a length above 30 m and power
of 611 kW (fishing trawlers), 408 vessels of a length from 15 metres to 30 metres
(cutters) and 578 vessels of a length up to 15 m (fishing boats).
In 2003 the minimum size of cod under protection was increased from 35 cm to
38 cm.
According to the Sectoral Operational Programme Fisheries and Fish
Processing, adopted by the government, it is planned to allocate Euro 330 million
(250 million from public funds and 80 million Euro as private investors’ cofinancing)
for investment in the fish sector. The funds will be mainly spent on
alleviating the consequences of vessel scrapping due to the planned reduction in the
47
19,8
22,9
6,5
2003
7,3
Canned and preserved fish
Pickled fish
Other products
18,2
6
19,3

FISHERIES
fishing capacity by 30%-40% (around 200 vessels). The investment will be mainly
aimed at modernisation of fishing vessels, including improvement of safety in
fishing vessels and the sanitary situation as well as protection and development of
water resources, construction of harbour infrastructure and support for the state-ofthe-art
fish market.
Fisheries in Poland comply with EU legislation. Most of the harmonisation
provisions were introduced based on the Law of 6 September 2001 on sea fishing.
Furthermore, legal framework for the organisation of the fish market in
conformity with EU regulations was provided in the Law of 10 October 2002 on
organisation of the market in fish and amending the Law on sea fishing, replaced
subsequently by the Law on organisation of the market in fish and financial aid for
fisheries of 22 January 2004.
These laws along with the regulations introduced provisions on market
standards, keeping the register of operators buying in fishery products, issuing by
such operators the sales document upon placing fishery products on the market and
receipt declarations upon storage thereof. The legislation in question lays down the
rules for the setting up and functioning of fish producer organisations as well as
inter-branch organisations and types of intervention measures taken by producer
organisations on the fish market and rules for granting state aid to such
organisations.
48

General information on trade in agri-food products
2003 saw for the first time in 10 years a surplus in foreign trade in agri-food
products. The positive trade balance was observed in the case of all Poland’s major
trading partners thanks to a much more rapid growth in Polish exports than
imports.
The value of exports grew by 37.6% and that of imports by 12.2%. In
consequence the trade balance was positive, amounting to USD 506 million.
Against Poland’s total foreign trade, in which a significant growth was
observed, agri-food products obtained better results. In 2003 the total export
was valued at USD 53.6 billion (an increase by almost one third compared
to 2002), import at USD 68.0 billion (an increase by nearly one fourth) and
the negative trade balance was equal to USD 14.4 billion against USD 14.1
billion in 2002.
Figure 23. Results of foreign trade in agri-food products against total products in 2000 – 2003
(million USD)
5000
4000
3000
2000
1000
Table 15. Share of agri-food products in total foreign trade (%)
Source: CIHZ
0
-1000
FOREIGN TRADE IN AGRI-FOOD PRODUCTS
2650
3183
-533
Source: CIHZ (Foreign Trade IT Centre)
3030
3406
-376
49
3285 3576
-291
4519
4013
2000 2001 2002 2003
Export Import Balance
Specification 2000 2001 2002 2003
% share of agri-food products in:
- total exports 8,4 8,4 8,0 8,4
- total import 6,5 6,8 6,5 5,9
506

Geographical pattern of trade in agri-food products
Poland’s major trading partner with respect to trade in agri-food products is the
European Union with which trade has been systematically expanding. In 2003, the
share of the EU in both exports and imports was over 50%.
Table 16. Foreign trade in agri-food products, by groups of countries, in 2000-2003 (USD million)
Source: CIHZ
FOREIGN TRADE IN AGRI-FOOD PRODUCTS
Specification
2000
Export
2001 2002 2003 2000
Import
2001 2002 2003 2000
Balance
2001 2002 2003
Total 2650 3030 3285 4519 3183 3406 3576 4013 -533 -376 -291 506
EU 1287 1456 1605 2309 1622 1790 1903 2090 -335 -334 -298 218
Former Soviet Union States 602 608 648 890 106 113 97 114 496 495 551 776
CEFTA 316 353 399 544 352 325 345 400 -37 28 54 144
EFTA 30 40 37 58 140 174 148 170 -110 -134 -111 -112
USA 107 116 150 170 74 81 99 92 34 35 51 79
Other 308 457 446 548 888 923 983 1148 -581 -466 -538 -600
Figure 24. Geographical pattern of trade in agri-food products in 2000 and 2003 (%)
1,1
11,9
4,1
2,3
4,4
27,9
Source: CIHZ
22,7
11,1
11,6
3,3
2000
2000
EU
Former Soviet Union States
48,6
51
Export
Import
CEFTA
EFTA
50
1,3
12
3,8
2,3
4,2
28,6
19,7
10
12,1
2,8
2003
2003
USA
Other
51,1
52,1

Among the European Union member states, Poland’s major trading partner as
regards agri-food products is Germany. In 2003 this country had a 38% share in
Poland’s agri-food trade with the EU as compared to 36% in 2002. As in the previous
years, the second largest trading partner from the EU was the Netherlands with a
share of 15%, then Italy – 9%, Spain – 8% and France – 7%.
With the total positive trade balance with the EU, the negative trade balance was
noted for Spain, the Netherlands, Greece, France, Belgium, Denmark, Ireland and
Italy.
As for other EU member states, the trade balance was positive, in particular with
Germany and the UK.
In 2003 trade in agri-food products showed favourable tendencies not only with
the EU-15 but also new EU member states.
Table 17. Trade in agri-food products with the EU-15 and new EU member states (USD million)
Source: IERiG˚ based on CIHZ data
FOREIGN TRADE IN AGRI-FOOD PRODUCTS
Specification
European Union – 25
1995 2000 2002 2003
1995=100
2003
2000=100 2002=100
Export 1464,3 1663,5 2101,3 2959,2 202,1 177,9 140,8
Import 1646,8 1957,7 2222,3 2460,6 149,4 125,7 110,7
Balance
European Union – 15
-182,5 -294,1 -121,0 498,5 x x x
Export 1335,7 1286,9 1605,0 2308,7 172,8 179,4 143,8
Import 1403,6 1622,2 1902,9 2090,4 148,9 128,9 109,9
Balance
European Union – 9
-67,9 -335,3 -297,9 218,3 x x x
Export 128,6 376,6 496,3 650,4 505,8 172,7 131,0
Import 243,2 335,5 319,4 370,2 152,2 110,3 115,9
Balance -114,6 41,2 176,9 280,2 x x x
Improvement in trade balance with EU member states indicates a positive
impact of liberalisation of mutual trade in agri-food products and acceleration of
Polish exporters’ adaptation to new conditions existing after the entry into force of
the relevant agreement and its subsequent amendments as well as to trade within
the Common Market.
Similarly, trade agreements concluded with CEFTA member states, some of
which joined the EU together with Poland, resulted in an increase in trade and a
positive trade balance for Poland.
As in the previous years, in 2003 Poland’s major trading partner among the
former Soviet Union states was Russia with a nearly 40% share in trade with these
countries. Poland’s exports dominate over imports to Russia and all former Soviet
Union states.
Overall, exports to these countries were eightfold greater than imports. The
second largest partner is Ukraine (40% share), the third Lithuania (18.2% share).
51

FOREIGN TRADE IN AGRI-FOOD PRODUCTS
For years Poland’s trade balance has been positive with the whole group and
particular states.
2003 saw a significant growth (36.2%) in exports to the CEFTA member states
and a twice as low increase in imports. Among CEFTA countries, the Czech
Republic is Poland’s major trading partner with a 40% share of trade with this group
of countries, then Hungary – 26%, Slovakia – 15% and Romania – 12%.
With regard to trade with EFTA states, a negative balance of trade in agri-food
products was noted despite a 56% increase in exports and as low as 14.7% increase
in imports. Poland’s exports went mainly to Norway (a 44% share in exports to that
group of countries) and Switzerland (52%). As for imports, it was primarily fish
from Norway (a 76% share in imports) and Iceland (13%).
As regards trade in agri-food products with the United States, it remained at a
low level as the US share was barely 3.8% and 2.3% in Poland exports and imports
respectively. Poland exported relatively large quantities of processed meat and
alcohol and imported fish and various processed food articles.
Among the countries that are not part of any of the groups mentioned above,
major recipients of Polish agri-food products in 2003 were Algeria, Bosnia
Herzegovina, Brazil and Saudi Arabia. In terms of value, exports to these countries
accounted for 32% of the total exports to all other countries. Other countries are
also significant suppliers of agri-food products to the Polish market, the leaders
being China, Argentina and the Ivory Coast. In 2003 the share of these countries in
trade with this group of states was 26% in total.
Commodity pattern of agri-food trade
In 2003 the commodity pattern of agri-food trade did not change significantly. As
compared to 2002 an increase was observed in both exports and imports of all
commodity groups, excluding imports of live animals.
As for exports, the biggest rise was noted for processed products of animal origin
and the smallest for livestock. As regards imports, an over 10% increase was
observed for raw materials of plant origin, processed plants and animals and fish and
fish products.
Figure 25. Commodity pattern of agri-food trade
6,6
7,1
23,1
Export Import
15,7 11,2
17
3,8
23,6
Plant raw materials
Livestock
Processed products pf plant origin
Source: IERiG˚ based on CIHZ
32,5
52
17,5
9,2
Processed products of animal origin
Fish and fish products
Stimulants and beverages
4,5
Other
27,1
1,1

Export
In 2003 exports of processed products of animal origin grew by 53% against 2002
up to over USD 1 million, which accounted for almost one fourth of the total value
of Polish agri-food exports.
Table 18. Polish exports of animal products in 2002-2003
Source: CIHZ
Table 19. Polish exports of raw materials of plant origin in 2002-2003
Source: CIHZ
FOREIGN TRADE IN AGRI-FOOD PRODUCTS
2002 2003 % 2002 2003 % Balance
Specification 2002 2003
USD million ’000 t USD million
1. Livestock 138,6 169,8 123 88,0 95,4 108 94,3 126,3
including cattle 94,5 107,8 114 67,3 60,2 89 84,1 98,6
2. Meat and offal for human
consumption, including:
302,2 561,8 186 181,9 391,3 215 204,2 454,7
- Beef 82,8 71,3 86 64,2 44,1 69 82,6 70,6
- Pork 37,7 179,9 477 36,9 199,7 541 -32,6 98,6
- horse meat 25,3 28,8 114 7,9 8,8 111 25,3 28,8
- poultry meat 128,3 243,8 190 51,7 100,7 195 106,4 224,3
3. Dairy products including 280,2 358,8 128 227,0 231,3 102 232,9 303,7
- condensed milk and cream 131,6 164,3 125 107,3 107,6 100 117,6 150,2
- cheeses and cottage cheeses 89,6 132,8 148 41,8 52,0 124 73,2 112,1
- butter 17,4 21,3 122 11,8 9,2 78 10,9 11,0
4. Processed meat 89,1 108,3 122 41,3 34,3 83 79,5 98,6
5. Bird’s eggs 5,7 25,9 454 9,4 27,2 289 0,6 20,5
2002 2003 % 2002 2003 % Balance
Specification 2002 2003
USD million ’000 t USD million
1. Cereals
including:
wheat and rye and
65,0 70,3 108 566,7 575,0 101 -49,0 -50,1
wheat mixtures 62,1 67,4 109 549,2 559,8 102 34,4 49,5
2. Oilseeds
including:
9,6 3,6 37 37,3 8,9 24 -42,5 -61,1
rapeseed seeds 8,6 1,8 21 36,0 6,4 18 6,1 -4,6
3. Potatoes 4,3 12,5 290 57,5 153,1 266 -8,6 4,9
4. Fresh fruit
including:
107,9 151,0 140 428,5 459,7 107 -371,9 -400,9
apples, pears and quince 53,8 69,8 130 347,3 356,5 103 47,2 60,2
5. Fresh vegetables 120,9 205,2 170 256,5 458,9 179 23,3 105,3
6. Flowers 45,6 64,6 142 44,0 49,2 112 -42,9 -39,5
53

FOREIGN TRADE IN AGRI-FOOD PRODUCTS
Compared to 2002, in 2003 exports of raw materials of plant origin grew by
almost 44% up to USD 507 million accounting for 11% of Polish agri-food exports.
An increase was noted in the value of nearly all exported products except for oilseeds
whose sales dropped by almost 2/3 to USD 3.5 million.
As regards fresh fruit exports, traditionally apples and berries such as
raspberries, currants, strawberries and sour cherries and re-export of southern fruit
had the biggest share.
Apples are mainly exported to the former Soviet Union states, in particular to
Russia and Belarus. 2003 saw an increase in export of apples to the EU, though its
share remained at a low level (nearly 5% in terms of value and 17% in terms of
quantity). The increase took place due to worse apple harvest in the EU.
Berries are primarily exported to the EU. As much as 89% of raspberries went
to the UE, in particular to Germany, France, Denmark and the Netherlands.
Among all commodity groups exports of processed products of plant origin
acquired the highest value.
54

Table 20. Exports of processed plant products in 2002-2003
Source: FAPA based on CIHZ data
As opposed to raw materials of plant origin, characterised by a negative trade balance
at -USD 441 million (-USD 492 million in 2002), the trade balance for processed plant
products was positive amounting to USD 382 million (USD 186 million in 2002).
With regard to fish exports, fish fillets and smoked fish had the biggest share. It
is mainly sardine, herring and cod which are exported. Of great importance for
Polish trade in fish is re-export, in particular of shrimps and pollock and hake fillets.
Most of processed fish is exported to the EU, primarily to Germany, Sweden and the
Netherlands.
Stimulants and beverages play an important role in Polish agri-food trade.
Table 21. Polish exports of stimulants in 2002-2003
Source: FAPA based on CIHZ data
Import
FOREIGN TRADE IN AGRI-FOOD PRODUCTS
2002 2003 % 2002 2003 % Balance
Specification 2002 2003
USD million ’000 t USD million
1. Vegetable oils and fats 17,9 19,0 106 33,5 28,2 84 -175,5 -220,3
2. Grain milling products 7,9 12,4 157 22,0 23,9 109 -20,7 -22,9
3. Ground grain and oil cake 23,5 21,8 93 202,5 157,5 78 -299,7 -335,0
4. Starch, grits, malt 37,4 49,3 132 166,3 183,9 111 -16,4 -13,2
5. White sugar 50,4 98,6 196 207,8 425,6 205 24,2 77,2
6. Molasses 25,2 24,7 98 251,8 292,8 116 25,2 24,7
7. Sugar confectionery 220,0 270,2 123 89,2 102,9 115 93,1 122,9
8. Processed fruit 475,6 631,1 133 552,7 557,3 101 348,4 483,6
9. Processed vegetables 277,9 342,9 123 411,7 493,0 120 207,9 265,2
10. Other processed plant products 365,0 499,8 137 198,8 246,3 124 -11,6 64,8
2002 2003 % 2002 2003 % Balance
Specification 2002 2003
USD million ’000 t USD million
1. Coffee, cocoa, tea 17,6 142,6 121 48,6 52,3 108 -247,8 -339,1
2. Tobacco and tobacco products 49,1 83,0 169 11,5 16,1 140 -146,4 15,8
3. Alcohols and alcoholic beverages 57,8 68,8 119 42,3 47,1 111 -46,9 -60,8
4. Waters and non-alcoholic beverages 21,9 28,1 128 106,1 112,7 106 8,9 5,9
As compared to 2002, in 2003 the value of majority of plant product imports grew,
excluding tobacco and cigarettes, potatoes, sugar and margarine. In the case of
major products, the biggest increase was observed in imports of stimulants, fruit,
processed fruit, sugar confectionery, ornamental plants, oils, ground grain and cake
and processed cereals.
55

Table 22. Agri-food imports in 2002 and 2003.
Source: FAPA based on CIHZ data
FOREIGN TRADE IN AGRI-FOOD PRODUCTS
Specification
2002 2003
USD million
% 2002 2003
’000 t
%
1. Livestock 44,4 43,5 98 x x x
2. Processed products of animal origin
including:
166,3 182,6 98 x x x
- red meat 75,2 86,5 115 53,8 57,3 107
- poultry meat 21,9 19,5 89 25,5 20,3 80
- milk, cream, ice-cream 27,4 26,0 95 30,0 20,6 69
3. Fish and fish products 321,2 369,1 115 220,3 234,8 107
4. Plant produce
including:
844,9 948,5 112 x x x
- Cereals 114,0 120,4 106 617,4 591,9 96
- fresh fruit 479,8 551,8 115 950,6 918,0 97
5. Processed products of plant origin
including:
- ground grain
949,4 1087,8 115 x x x
and oil cake 323,2 356,8 110 1572,7 1605,5 102
- sugar confectionery 126,9 147,3 116 69,5 68,0 98
- processed fruit 127,2 147,4 116 137,8 141,8 103
6. Other products
including:
760,9 794,8 104 x x x
- coffee, tea, cocoa 365,4 481,8 132 236,5 248,4 105
- tobacco and tobacco products
- alcohols and alcoholic
195,4 67,2 34 54,4 22,3 41
beverages 104,7 129,6 124 122,9 104,5 85
The share of plant products fell, whereas that of animal and “other” products
grew.
A characteristic feature of Polish foreign trade in agri-food products is a bigger
share of food industry products in exports than in imports and the reverse situation
for agricultural products. In 2003 the share of processed products was 81.4% in
exports and 65.7% in imports. In 1990 the situation was different as foodstuffs
constituted 65% of total agri-food exports and almost 80% of imports. Thanks to the
development of the Polish agri-food industry, product improvement and exquisite
taste, exports of processed products, which are more favourable for the economy,
have been systematically rising.
56

NATIONAL SUPPORT INSTRUMENTS
So far mechanisms regulating agriculture in Poland have combined market
instruments with state intervention.
Aid was provided to agriculture primarily through national budget subsidies.
Despite numerous agriculture support instruments, aid received by Polish
agricultural producers in the previous years remained at a much lower level than in
other countries. According to OECD, the Producer Subsidy Equivalent (PSE) for
agricultural producers, showing the percentage share of all forms of subsidies in the
final production value, was one of the lowest in the world.
Table 23. Producer Subsidy Equivalent for agricultural producers in selected countries in 1986-2003 (%)
Source: Agra Europe 2004 No 2109, p. EP/4
AGRICULTURAL POLICY
Specification 1986-88 2001 2002 2003
OECD average 37 31 31 32
EU average 39 34 35 37
USA 25 23 19 18
Hungary 16 22 33 27
Czech Republic 31 23 25 27
Poland 11 15 14 9
State aid was provided mainly through the following instruments:
- subsidies to interest on working capital banking credit for the purchase of
agricultural inputs (fertilisers, plant protection agents, animal feedingstuffs,
fuel, etc.) and purchase of seasonal agricultural produce (cereals, potatoes, oil
crops, sugar beets, fruit and vegetables, seeds) as well as storage of certain
commodities
- subsidies to interest on investment banking credit for agriculture (including
land purchase and setting up agricultural holdings by young farmers), food
processing and services for agriculture and for entrepreneurship development
and creation of new jobs in rural areas
- subsidies to credit to alleviate natural disaster consequences in agriculture
- guarantees and endorsements for investment credit repayment
- subsidies to biological advancement in plant and animal production
- subsidies to agricultural holdings involved in organic farming
- subsidies to plant protection, maintenance of hydromelioration facilities,
control of infectious animal diseases, etc.
- financial support for research and application the results thereof in agriculture
and agri-food processing
- subsidies to diesel fuel used in agricultural holdings for the purposes of
agricultural production
- agricultural tax preferences and exemptions
57

AGRICULTURAL POLICY
- real estate tax exemptions
- subsidies to afforestation of agricultural land of grade 5 and 6
- subsidies to buying in prices of extra grade milk
- subsidies to buying in prices of cereals for human consumption (wheat and rye
of appropriate quality parameters)
- subsidies to buying in prices of industrial tobacco
- subsidies to starch and potato starch producers
- financing intervention buying in of major agricultural products (cereals, milk
powder, butter, pig half-carcasses, etc.)
- financial aid for producer groups
- subsidies to exports of certain agricultural products (pork, milk powder).
Financing of agriculture from the national budget
Every year allocations from the national budget are made for support of
agriculture, agricultural markets and rural areas development as well as for social
insurance.
Table 24. National budget funds allocated for support of agriculture, agricultural markets and rural areas
development (PLN million, nominal amounts) in 2001-2003
Specification 2001 2002 2003
Funds for support of agriculture, agricultural markets and rural areas development 4005 3886 4321
Funds for subsidies to Farmers’ Social Security Fund (KRUS) 15822 15390 15690
Total 19827 19276 20011
As translated into Euro (at the mid exchange rate announced by the National
Bank of Poland; PLN 366.85 for Euro 100 in 2001; PLN 385.57 and PLN 439.78 for
Euro 100 in 2002 and 2003 respectively), aid decreased from Euro 5 405 million to
Euro 4 550 million in 2003. The share of expenditure on agriculture including
KRUS in GDP is by 0.47 percentage points lower than the agriculture contribution
(2.6%) to GDP. In 2003 the share of expenditure on agriculture in total national
budget expenditures was 2.22% and 10.29% including KRUS.
Membership of the EU and application of the Common Agricultural Policy rules
implies a complete change of scale and system of agriculture financing. The
programmes and subsidies financed hitherto from the national budget will become
of secondary importance or will be abandoned.
Rural Development Programme (RDP)
To implement the Rural Development Programme, the Polish government
contracted a loan from the World Bank totalling Euro 118.8 million. The
58

programme, whose implementation was commenced in 2002 and the
completion was shifted from 2004 to 2005, is targeted at inhabitants of villages
and small towns.
Actions and supportive measures funded from the WB loan and co-financed
from the Polish national budget totalling Euro 300 million comprise the following:
- granting micro-loans to create new jobs
- financing programmes of reorientation/and retraining of the workforce
- financing school education in rural areas
- co-financing construction of rural infrastructure
- co-financing creation of local and regional administration
Appropriate ministries and local self-governments are engaged in the
Programme implementation.
Agricultural Advisory Services
AGRICULTURAL POLICY
State agricultural advisory services financed from the national budget are an
important element of aid for farmers, by providing advice to farmers and inhabitants
of rural areas on a wide scale, free of charge. Agricultural Advisory Services played a
particularly important role during preparations for the EU membership
referendum, for accession to the EU and right after accession. Agricultural advisors
were main providers of information on rules applicable to agriculture following
accession and a necessity of complying with specific sanitary and veterinary
requirements in agricultural production. Along with paying agencies’ staff, advisors
helped farmers fill in applications for direct payments and prepared farmers and
inhabitants of rural areas to be able to draw on Structural Funds aid.
In Poland advisory services operate within two structures:
- Voivodship Advisory Services Centres (ODRs) together with field units
reporting to voivods and financed from voivodship budgets
- National Advisory Centre for Agriculture and Rural Development
(NACARD) including two divisions and seven regional centres, reporting to
Minister of Agriculture and Rural Development and financed from the
MARD budget.
Overall, 5 315 staff are employed in ODRs and NACARD, of whom 2 992 field
advisors, 1 048 specialists and 322 management staff. Agricultural Advisory Centres
cooperate with research and scientific units, national and regional institutions as
well as agricultural organisations and companies working for the benefit of
agriculture and rural development. Dissemination of information useful for farms’
operations as well as enhancing farmers and rural areas inhabitants’ qualifications,
enabling them to benefit from state aid and external funds takes various forms, such
as direct contacts with farmers, training courses, seminars, agricultural fairs,
exhibitions and other promotion events, website, advisory centres’ publications,
bulletins, magazines, leaflets, posters, video cassettes, etc.
59

Research and development units
AGRICULTURAL POLICY
The Minister of Agriculture and Rural Development is responsible for
supervising 20 research and development units including 17 research institutes,
2 central laboratories and 1 research and development centre.
Research and development units are engaged in research and development
activities in all areas and disciplines of agricultural sciences covering plant
production, animal production, agri-food processing, as well as technique,
economics and organisation of production.
In 2003 the average number of scientific staff working for the Ministerial
research and development centres was 1 130 persons including 179 professors.
Agricultural sciences in Poland achieved a high scientific level, in particular in
such disciplines as veterinary science, physical properties of soils, environmental
pollution and food contamination, agricultural crops genetics, farm animal
physiology and the use of biotechnology to obtain organisms with the desired
characteristics. Ministry research and development units pursue over 3 000 themes
annually under their statutory activities, of which 1 500 are completed each year.
Since 1998 information on research conducted under statutory activities and
completed every year in ministerial R&D units has been entered in the IT system
“SIBROL”, run by the Central Agricultural Library. The Minister of Agriculture and
Rural Development gives awards to R&D units’ staff (scientific teams) for their
great achievements of significant importance for agriculture, rural development and
agricultural markets.
Overall, 7 740 publications were issued by R&D units’ employees in 2003,
including 2 968 scientific publications, reviewed and issued by ministerial R&D
units’ staff and 481 monographs and manuals.
Funds allocated for financing or co-financing are transferred from the national
budget as a grant defined as to a grantee, earmarked subsidy and based on the
decision or agreement on, inter alia, statutory activities of units, research projects,
earmarked projects, contributions to international institutions.
Moreover, R&D units have other sources of funds for research and development
such as participation in foreign cooperation programmes, provision of services to
economic and scientific establishments as well as lease and sale of assets, interest
on capital, etc.
Generally in 2003, R&D units reporting to the Ministry of Agriculture
were running approximately 700 national research programmes and around
112 international research programmes, of which 52 under EU schemes.
60

EUROPEAN UNION ASSISTANCE
1991 was the first year when EU assistance was provided for Poland based on
the Decision of the Council of Ministers of the European Economic Community
(EEC) of 1989 channelling assistance funds to Poland and Hungary to support
transformations and adaptation of the agricultural and rural sector to the
changing external conditions. Pre-accession assistance was provided under
Phare projects and as from 2000 from the SAPARD Programme. These
programmes continue to be implemented, though no new tasks have been
undertaken since 2004. Following accession to the EU, agriculture and rural
areas are funded from the European Agricultural Guarantee and Guidance Fund
(EAGGF).
Pre-accession Programmes
Phare Projects
AGRICULTURAL POLICY
In the first years of Phare project implementation priority was given to
privatisation of state-owned farms, renewal of rural cooperatives and cooperative
banks as well as training for farmers and other persons working for agriculture and
its environment.
In 1994 wholesale trade structures were growing in importance in Phare projects
as well as agri-environmental programmes the implementation of which was
commenced then. In addition, projects aimed at food safety (HACCP – Hazard
Analysis and Critical Control Points), Good Manufacture Practices in agri-food
industry, ISO standards were becoming increasingly important.
Following 1995 a large part of funds was allocated for harmonisation of Polish
legislation with the acquis communautaire and adaptation of inspection services,
in particular veterinary and phytosanitary services as well as preparation of
administrative institutions for performance of new functions following
accession.
Gradually, investment projects were embarked on, in particular those related to
construction of technical infrastructure in rural areas (water pipelines, sewerage
systems, dumping sites, roads, re-electrification, etc.).
In 1998 the rules for Phare project funding were changed. Since then, the cofinancing
by the Polish side has become necessary. Simultaneously, rules for aid and
funds allocation have been modified. According to the new rules, 30% of assistance
funds were to be allocated for institution building or transformation and 70% for
investment relating to such institutional adaptation, i.e. mainly purchases of
computers, software and equipment for laboratories.
Within 1999-2003, 39 new projects were implemented, primarily aimed at:
- adaptation of veterinary border inspection services, laboratory control and
control of animal feedingstuffs, creation of administration responsible for
phytosanitary and food control
61

- creation of fishery administration and organisation of the fish market
- implementation of CAP mechanisms, including establishment of the
Integrated Administration and Control System (IACS), Land Parcel
Identification System (LPIS) and Animal Identification and
Registration
- enforcement of standards for agricultural holdings, creation of organic farms,
- preparations for the introduction of the early retirement scheme (structural
pensions), agri-environmental programmes and afforestation,
- implementation of farm accountancy (FADN), the agricultural information
system, the agricultural advisory system.
According to financial memoranda for particular years, nearly Euro 300 million
was allocated for agricultural project implementation, of which Euro 140 million in
1999-2003.
Phare 2003 is the last pre-accession assistance programme. However, Poland and
other new EU member states will continue the strengthening of administration and
implementation of EU legislation following accession. To this end, the European
Commission proposed an additional financial programme Transition Facility, which
will enable funding of measures to strengthen administration within 3 years
following accession.
The European Commission suggested that such transition facility should
continue the Phare Programme Institution Building, thus retaining the programme
organisational structure that was created during its implementation.
According to the schedule of the Transition Facility, the financial proposal
covering projects proposed for Transition Facility 2004 will be discussed by the
Phare Management Committee in September 2004.
The Ministry of Agriculture submitted four projects for TF 2004 and two
components under the Multi-sectoral Training Programme for Accession to the EU
totalling Euro 9 620 000 (Euro 7 820 000 of EU funds and Euro 1 800 000 as Polish
co-financing).
SAPARD Programme
AGRICULTURAL POLICY
SAPARD was launched in July 2002, and the deadline for application submission
by beneficiaries was February 2004. Within the whole period of application
submission, farmers, territorial self-governments and entrepreneurs lodged 31 077
applications in total, including:
- 1 778 for implementation of tasks related to improvement of processing and
marketing of agricultural and fish products
- 15 574 for investments in agricultural holdings
- 6 230 for development and improvement of rural infrastructure
- 7 495 for measures aimed at diversification of economic activities in rural
areas.
In addition, training and technical assistance the beneficiary of which was
MARD were provided.
62

AGRICULTURAL POLICY
Poland signed with the European Commission four Annual Financing
Agreements for 2000-2003 totalling Euro 708.2 million with the corresponding
national co-financing at Euro 235.8 million.
From the beginning of its implementation until 22 June 2004, Euro 1047.2
million was disbursed to 5 378 beneficiaries.
Amounts covered by applications for financial aid are above the SAPARD limits
and therefore the European Commission was requested to finance applications
assessed positively from the European Agricultural Guidance and Guarantee Fund
(EAGGF) resources.
Assistance funds following accession to the EU
Following accession, agricultural producers will be entitled to apply for the
following:
- direct area payments and payments to production of tobacco raw material and
potato for starch,
- participation in the rural development schemes covered by the Rural Areas
Development Plan (RADP)
- investment in agricultural holdings and enterprises and in agricultural
environment, as defined in the Sectoral Operational Programme (SOP)
63

Restructuring and Modernisation of the Food Sector and Rural Development
The aid will be financed from the European Agriculture Guidance and
Guarantee Fund (EAGGF).
Agricultural producers will also benefit indirectly from intervention measures
undertaken on the Common market, financed from the EU budget, and regional
development programmes.
Direct payments
AGRICULTURAL POLICY
The system of single area payments is a new solution, not applied in the EU-15
so far. The system in Poland is based on direct payments to agricultural land
including:
- a single area payment, financed in total from the EU budget constituting 25%,
30% and 35% in 2004, 2005 and 2006 respectively of payments applicable in the
EU. The rate of payment to 1 ha of UAA will be determined by the European
Commission based on Poland’s envelope (financial conversion of premiums
and reference areas under crops covered by payments in the EU allocated for
Poland in the Accession Treaty),
- supplementary payments financed from the national budget and partly from
the shift of UE funds for Poland allocated for RADP implementation within the
following years 2004, 2005 and 2006 up to 55%, 60% and 65% for crops eligible
for EU support (cereals, including maize for animal feedingstuffs, oilseeds,
high protein crops, flax and hemp for fibre, pulses, tobacco, hops, starch
potatoes) and fodder areas related to animal production covered by animal
premiums in the EU (cattle, sheep, milk).
It is estimated that the rate of a single area payment will be ca Euro 45 per ha,
which corresponds to ca PLN 200 (depending on the Euro exchange rate), whereas
that of supplementary payments will be determined by the Council of Ministers
annually. The rate of supplementary payments depends on the type of crops and will
range from Euro 60 per ha (cereals, oilseeds, high protein crops, flax, hemp, vetch,
crops grown for seeds and meadows and pastures) to 220 Euro/ha for hemp, 50
Euro/t for starch potatoes and 5 PLN/kg for tobacco.
Applications for direct payments in Poland were submitted until the extended
deadline of 15 June 2004 (from 15 April); 85% of eligible farmers applied for such
payments, for the area of 92% of UAA.
In addition, under a single application for area payments, farmers applied for
payments to farms in less favoured areas (LFA) (53% of the total UAA in Poland).
It is estimated that Polish farmers will receive over PLN 6 billion annually as
direct payments.
On 1 May 2004 payments to buying in prices of extra grade milk were abolished
and as from the second half of 2004 fuel vouchers, or payments to certified seeds as
well as the hitherto forms of intervention on the pork market (intervention buying
in) will be withdrawn.
64

AGRICULTURAL POLICY
Rural Areas Development Plan (RADP)
To implement the Plan, Euro 3 563 million will be allocated in 2004-2006,
including Euro 2 866.4 million from the EU and Euro 696.6 million from the
national budget.
The following programmes will be carried out under the Plan:
- structural early retirement pensions aimed at replacement of generations
in agriculture and improvement of the agrarian structure. The structural
pension rate is determined as a relevant percentage of the lowest old-age
pension. Depending on the size of the farm to be transferred or the number of
people (a farmer or a farmer and his wife), the basic amount of pension will
range from 210% to 440% of the lowest pension (i.e. given that on 1 March
2004 the lowest pension in Poland was set at PLN 562.58, the structural
pension will range from PLN 1 181 to PLN 2 475)
- support for semi-subsistence farms, i.e. assistance for farms of small
economic potential amounting to 1 250 euro/farm annually. After the third
year, the beneficiaries will have to prove that they have expanded their
production
- support for farming in LFA to compensate for unfavourable natural
conditions and to counteract depopulation of rural areas and the loss of their
agricultural character.
The support rate will range, depending on difficulties in land cultivation and its
location, from 56 to 68 Euro/ha. LFA payments will be reduced for farms with an
area over 50 ha and those with an area over 300 ha will not be eligible for such
payments at all
- support for agri-environmental measures and improvement of animal
65

AGRICULTURAL POLICY
welfare to strengthen sustainable agriculture, especially in protected areas
and those at risk of degradation. The average subsidy rate is estimated at ca
100-200 Euro/ha depending on the measures taken
- land afforestation and ensuring proper care of new plantings at early stages
of their growth.
The assistance will be disbursed every year:
• as a single payment for afforestation at 4 300 – 5 900 PLN/ha (variation is
due to differences in terrain configuration and types of trees: coniferous/leaf
trees, proofing against animal (2 m grid) 2 400 PLN/ha)
• as a plant husbandry premium – 420-750 PLN/ha without using repellents
and 700 – 1 100 PLN/ha using repellents
• as an afforestation premium of 1 400 PLN/ha for a farmer generating more
than 20% of income from farming and 360 PLN/ha for a farmer earning
more than 80% from off-farming activities
- harmonisation of agricultural holding standards with those of the EU
with regard to environmental protection, plant protection, health, animal
welfare. The support rate will be 200 Euro/Large Production Unit in the first
year and 50 and 25 Euro/LPU in the second and third year respectively. The
assistance rate for hen farms will be Euro 150, Euro 50 and Euro 25 per 150
stalls within the successive three years.
- agricultural producer groups set up to jointly harmonise production
standards by group members. In the course of 5 years the aid will be provided
for each consecutive year at 5%, 5%, 4%, 3% and 2% of the sold output value
up to Euro 1 million and at 2.5%, 2.5%, 2%, 1.5% and 1.5% of the sold output
value above Euro 1 million. Such aid cannot exceed Euro 100 000 in the first
and second year and Euro 80 000, Euro 60 000 and Euro 50 000 within the
following successive years.
Sectoral Operational Programme: Restructuring and Modernisation of the
Food Sector and Rural Development (SOP)
In 2004-2006 support under SAPARD will be Euro 1 784.15 million, of which
Euro 1 192.68 million from the EU and Euro 591.47 million from the national
budget. Some recipients of measures under the programme will be required to cofinance
the undertakings. Farmers, entrepreneurs, local self-governments and State
Forests Authority will be eligible for aid.
Under the programme the following undertakings will be financed:
- investments in agricultural holdings up to PLN 300 000, the aid ranging
from 50% to 65% of eligible costs. Farmers from LFA and young farmers will
obtain higher rates of aid.
- facilitating the start of young farmers by granting a premium of PLN
50 000 to young farmers starting to run a farm on their own. To receive such
premium, they will have to comply with four conditions:
• the age of 40 and the date for starting running a farm not later than within
66

AGRICULTURAL POLICY
12 months of assistance allocation
• vocational qualifications
• minimum environmental, hygiene and animal welfare standards
• farm economic viability
- development and improvement of technical infrastructure related to
agriculture up to 50% of eligible costs, with the maximum level of assistance
of no more than PLN 200 000 for construction or modernisation of internal
roads, PLN 80 000 for sewage treatment and purification and PLN 120 000 for
power supply network and equipment
- vocational training for farmers and other people working agriculture and
forestry in production, farm management, commercially-oriented production,
compliance with EU standards, etc. The assistance is provided as
reimbursement of eligible costs borne by training institutions
- support for agricultural advisory services to be involved in helping
farmers apply for CAP and Structural Funds financial resources. 100% of
eligible costs will be reimbursed
- improvement of processing and marketing of agricultural products up
to 50% of eligible costs, however, no more than PLN 20 million per processing
establishment modernising its production potential (inter alia, for purchases of
specialist equipment ensuring quality improvement and environmental
protection)
- restoring forest production potential destroyed by natural disasters and/or
fires and introducing appropriate prevention instruments, up to 100% of
eligible costs
- land consolidation up to 10% of eligible costs. Areas characterised by high
fragmentation and split-up of parcels within a farm will be covered by
assistance
- village rehabilitation and preservation and protection of cultural
heritage up to 80% of eligible costs, and 20% must be contributed by the
local self-government. The total public assistance for such undertakings is
PLN 450 000.
- management of agricultural water resources up to 100% of eligible costs
reimbursed to Land Reclamation and Water Installations Boards. As regards
detailed land reclamation, farmers are to contribute 20%, the national budget
– 30% and EU fund – 50%.
Furthermore, sustainable rural development will be supported via the pilot
programme Leader+. The maximum aid for formulation and pursuance of local
strategies for rural areas development aimed at making such areas more attractive as
a place of residence and business operations may amount to PLN 150–1 500 000
depending on the type of undertaking.
67

AGRICULTURAL CENTRAL AND LOCAL SELF-GOVERNMENT INSTITUTIONS
Agricultural Market Agency (AMA)
As from the date of accession AMA has been playing the role of a paying agency
for some of measures complying with EU legislation on the organisation of
particular agricultural markets.
In the framework of CAP mechanisms AMA will be responsible for taking
measures on the following markets: cereals, meat, milk and milk products, sugar,
starch, dried fodder, flax and hemp for fibres, raw tobacco, wine, fruit and
vegetables, olive oil and silkworms with regard to:
- intervention purchases, storage and sales of cereals, meat, milk products and
sugar
- private storage aid for meat and meat products
- aid to dried fodder production
- production premiums for potato starch producers
- aid to processing of flax and hemp straw
- aid for silkworm producers
- aid for processors utilising starch and sugar for uses other than human
consumption, for olive oil used in processing and aid for the use of grape must
to produce juice and other foodstuffs and to increase alcohol concentration in
winery products, aid for processing and consumption of milk products
- payments to producers of raw tobacco and potatoes for starch production
- support for bee-keeping
- organisation of tenders for utilisation of fruit and vegetables not intended for
marketing,
- administration of quotas of milk production, potato starch and raw tobacco.
Agency’s tasks with regard to milk products, dried fodder, flax and hemp for
fibre, raw tobacco as well as fruit and vegetables are provided for in national sectoral
laws.
In addition, the Agency is responsible for administering trade in agricultural
products and processed products not covered by Annex 1 to the Treaty establishing
the European Community by:
- issuing and settling import and export licences
- issuing documents required to calculate and disburse export refunds and
import levies
- dealing with financial security
- calculating and disbursing export refunds and import levies
- imposing and enforcing administrative penalties.
AMA’s responsibilities will include both implementation of programmes to
provide food surpluses for the less well-off EU citizens and measures to disseminate
promotion and information programmes concerning agri-food products.
68

AGRICULTURAL CENTRAL AND LOCAL SELF-GOVERNMENT INSTITUTIONS
Agency for Restructuring and Modernisation of Agriculture (ARMA)
Supporting Polish farmers and rural areas inhabitants for 10 years now, mainly
through subsidies to interest on banking working capital and investment credits as
well as co-financing rural infrastructure, measures aimed at training and education
of the youth and adults, the Agency for Restructuring and Modernisation of
Agriculture has become the second, beside AMA, paying agency.
ARMA is responsible for direct payments, accompanying measures and other
instruments implemented under the CAP, financed from the EAGGF.
Previously ARMA took measures related to payment of EU funds by
implementing the SAPARD Programme to be finalised by end-2006 (disbursement
of payments).
Following accession, ARMA has been performing the following main functions:
- of a paying agency
- of the Implementing Authority and final beneficiary for SOP and RADP
- of an institution implementing national aid schemes
In order to efficiently perform new functions, ARMA was engaged in
implementing the IACS (Integrated Administration and Control System)
system, preceded by agricultural producers’ registration and introduction of the
Animal Identification and Registration System. IACS was established from scratch
and its implementation was related to the change of the ARMA organisational
structure and development of relevant procedures for receipt and examination of
applications. Three hundred and fourteen ARMA’s poviat offices were set up under
a new structure.
The IT software operating in the Agency is an integral part of the national food
security system.
From 15 April to 30 June 2004 the Agency received 1.6 million applications for a
farm registration number and 1.4 million for direct payments. ARMA is also
responsible for administrative control of payment disbursement correctness.
Agricultural Property Agency (APA)
Pursuing its activities from 1992 to 15 July as the Agricultural Property Agency of
the State Treasury, APA is a state legal entity entrusted with the exercise of the
ownership right and other rights in property with regard to state-owned agricultural
real estate.
APA carries out tasks of setting up family farms, improving agrarian structure,
creating conditions for a regional use of APA Resource production potential,
restructuring and privatising State Treasury property utilised for agricultural
purposes, trading in property and other State Treasury assets used for agricultural
purposes, securing the State Treasury and supporting the establishment of private
farms on State Treasury land.
APA operates on the self-financing basis. The main sources of its income are
revenues from property sales and leases. In the initial years of APA’s operation, a
69

AGRICULTURAL CENTRAL AND LOCAL SELF-GOVERNMENT INSTITUTIONS
significant part of such revenues was allocated for the repayment of commitments
taken over worth almost PLN 2 billion. At present, a large part of funds from the APA
Resource privatisation is channelled to the national budget, Labour Fund and
Agricultural Market Agency.
On 16 July 2003, the Law on agricultural structure entered into force. Its
provisions lay down new Agency’s tasks and instruments to implement such tasks.
These provisions enable the Agency to control that part of trade in agricultural
property that has been beyond its control so far and to intervene, if necessary, to
achieve the Law objectives, i.e. to improve the agrarian structure of agricultural
holdings, to counteract excessive concentration of agricultural property and to
ensure farming in agricultural holdings by persons with appropriate qualifications.
Through such objectives the provision of Article 23 of the Constitution of the
Republic of Poland is enforced; pursuant to it the basis of the agricultural structure
in Poland is a family farm.
The Agency can supervise trade in agricultural property thanks to new rights
it was granted, i.e. the pre-emption right (in the case of sale agreements) and the
so called buyout right (for other agreements transferring ownership of agricultural
property). The pre-emption and buyout rights are not applicable, among other
things, to transfer of agricultural property resulting in enlargement of a family
farm up to 300 ha of UAA and to trade in agricultural property between related
persons.
In addition to the aforementioned tasks, the Agency performs ownership
functions in crops breeding companies and animal breeding companies
indicated by the Minister of Agriculture as particularly important for the
national economy. Currently, APA exercises ownership right in relation to 59
such companies.
By the end of May 200, in performance of its statutory tasks the Agency took
over 4.7 million ha of land, including 80% from the former state-owned farms
(PPGR) of an average area of 2 250 ha. So far 1.7 million ha of land has been
permanently distributed, of which 1.4 million ha has been sold. At present there is
3 million ha in the Agency Resource, of which 2.4 million ha of land (78%) has
been leased. There is still 504 000 ha of land to be distributed, largely of little
agricultural usability.
The property taken over by the Agency from the former PPGR included
objects of a special character such as food processing plants as well as manor
houses and palaces with parks. Most of such objects has been sold or rented. In
addition, the Agency took over 333 000 flats of which 306 000 have been
distributed, primarily via sales to the tenants. At present there is 27 000 flats in
the APA Resource.
The main method of distributing the property taken over is sale and lease
through Agency’s branch and local offices via oral public tenders (auctions) and
tenders involving written bids (competition).
70

AGRICULTURAL CENTRAL AND LOCAL SELF-GOVERNMENT INSTITUTIONS
Agricultural Chambers
Re-established on the basis of the Law of 1995 (with subsequent amendments),
agricultural chambers have an over one hundred years' tradition in Poland. It is a
form of common agricultural self-government with a legal status. Members are
obligatorily all agricultural tax payers and payers of income tax on specific sectors of
agricultural production as well as members of agricultural cooperatives that
contribute land to such cooperatives.
Statutory bodies of agricultural chambers are elected in a democratic election,
and the supreme body, e.g. the General Assembly - in a general election among
farmers. Currently, there are 16 voivodship agricultural chambers in Poland. Their
activities are aimed at ensuring effectiveness of agricultural production and
increasing rural inhabitants’ incomes and improving living standards of the rural
population.
Such objectives are being pursued by consulting regulations by law concerning
agriculture and co-participating in comprehensive activities to improve an economic
and production situation.
The representation of agricultural chambers at the national level is the National
Council of Agricultural Chambers (KRIR) composed of Presidents of chambers and
delegates elected by the General Assembly, one delegate from each chamber. Both
the National Council and particular chambers co-operate with their counterparts in
EU member states and in new EU member states. As a result of foreign cooperation
established by agricultural chambers, training and study missions are organised
during which exchange of information and experiences between agricultural selfgovernment
of particular countries takes place. In particular KRIR has been closely
cooperating with French agricultural chambers, e.g. each of the voivodship
chambers cooperates with at least one departmental agricultural chamber in France.
Such cooperation covers project implementation in particular sectors, improvement
of labour organisation, agro-tourism development, exchange of the youth from
agricultural schools, etc.
An important element of KRIR’s international cooperation is an attempt at
providing information on specific features of Polish agriculture to EU farmers. It
takes the form of organised trips of EU farmers to Poland during which both
achievements and problems of Polish agriculture are presented. For instance, every
year KRIR organises missions of agricultural counsellors from the EU member
states’ embassies to familiarise them with Polish agriculture.
Moreover, KRIR cooperates with pan-national European agricultural
institutions. Since the beginning of 1998 the National Council of Agricultural
Chambers has been a member of the Confederation of European Agriculture
(CEA). From September 2002 it was an associated member of COPA/COGECA and
since 1 July it has been a fully fledged member of this organisation (Committee of
Agricultural Professional Organisations – COPA and General Committee of
Agricultural Cooperatives – COGECA).
71

AGRICULTURAL CENTRAL AND LOCAL SELF-GOVERNMENT INSTITUTIONS
Agricultural Circles
The National Union of Farmers, Agricultural Circles and Organisations
(KZRKiOR) is a professional union of private farmers and the national, selfgoverning
association of Agricultural Circles and Rural Housewives’ Circles (KGW),
local farmers’ unions, agricultural circles and organisations, cooperatives of
agricultural circles and other agricultural organisations associated on a voluntary
basis. Agricultural circles bring together approximately 1.2 million members and
KGW – 850 000 members associated in 25 000 KGWs.
As a social and professional farmers’ organisation, agricultural circles have a
142-year old tradition and Rural Housewives’ Circles – a 135-year old tradition.
Agricultural circles pursue their activities based on three laws: the Law of 8 October
1982 on farmers’ socio-economic organisations, the Law of 7 April 1989 on farmers’
trade unions and the Cooperative Law of 16 September 1982. There are 49
KZRKiOR regional offices operating all across the country.
As the largest socio-professional organisation, KZRKiOR has been cooperating
with other agricultural organisations from EU member states. Thus, professional
organisations and trade unions from EU member states and the then EU candidate
countries pay visits to KZRKiOR. Close contacts have also been forged with
representatives of numerous embassies. KZRKiOR organises study tours to EU
member states to get acquainted with other agricultural organisations’ activities and
the rules applicable to EU agriculture.
Resulting from the Union’s activities in the period prior to Poland’s accession to
the EU, on 3 October 2002, i.e. the 140th anniversary of the founding of agricultural
circles, the decision was taken to set up the KZRKiOR representative office in
Brussels. As the only agricultural organisation from Poland, the Union started
monitoring all decisions on Poland’s accession to the EU.
On 23 and 24 September 2000 KZRKiOR organised the Congress of European
Agriculture in Kraków. The Congress’ dominant theme was New Prospects for an
Enlarged Europe.
On KZRKiOR’s initiative, under the honorary auspices of A. KwaÊniewski,
President of the Republic of Poland, on 8 and 9 February the conference bringing
together 100 leaders of agricultural and cooperative organisations was convened.
The theme was Future of Agriculture in an Enlarged Europe. Development,
Opportunities, Threats. In September 2002 KZRKiOR was accepted as an
associated member of COPA-COGECA until May 2004. In April 2003 during the
COPA-COGECA Presidium W. Serafin, President of KZRKiOR, was elected Vice-
President of COPA. On 6 May 2004 KZRKiOR became a fully-fledged member of
COGECA and on 13 May 2004 – a fully-fledged member of COPA.
72

ADDRESSES
Adresses of institutions related to agriculture
GOVERNMENT AND OTHER INSTITUTIONS
MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT (MARD)
00-930 Warszawa, ul. Wspólna 30
tel./fax (+48 22) 623 10 00; (+48 22) 629 55 99
http://www.minrol.gov.pl e-mail: kancelaria@minrol.gov.pl
AGRICULTURAL MARKET AGENCY (AMA)
Information and Promotion Office
00-400 Warszawa, ul. Nowy Âwiat 6/12
tel./fax (+48 22) 661 72 72; (+48 22) 628 93 53
http://www.arr.gov.pl e-mail: b.demska@arr.gov.pl
AGENCY FOR RESTRUCTURING AND MODERNISATION OF
AGRICULTURE (ARMA)
00-175 Warszawa, Al. Jana Paw∏a II 70
tel./fax (+48 22) 860 29 23; (+48 22) 636 17 75
http://www.arimr.gov.pl e-mail: info@arimr.gov.pl
AGRICULTURAL PROPERTY AGENCY (APA)
00-215 Warszawa, ul. Dolaƒskiego 2
tel./fax (+48 22) 635 80 09; (+48 22) 635 00 60
http://www.anr.gov.pl
FOUNDATION OF ASSISTANCE PROGRAMMES FOR AGRICULTURE
(FAPA)
00-930 Warszawa, ul. Wspólna 30
tel. /fax (+48 22) 623 16 03; (+48 22) 628 93 87
http://www.fapa.com.pl e-mail: fapa@fapa.com.pl
FARMERS’ SOCIAL SECURITY FUND (KRUS)
00-608 Warszawa, Al. Niepodleg∏oÊci 190
tel./fax (+48 22) 825 99 41; (+48 22) 825 95 97
http://www.krus.gov.pl e-mail: centrala@krus.gov.pl
CENTRAL STATISTICAL OFFICE (GUS)
Information and Publications Office
00-925 Warszawa, Al. Niepodleg∏oÊci 208
tel./fax (+48 22) 608 38 04; (+48 22) 608 31 87
http://www.stat.gov.pl e-mail: rzecznik@stat.gov.pl
73

ADDRESSES
AGRICULTURE AND FOOD QUALITY INSPECTION
00-930 Warszawa, ul. Wspólna 30
tel./fax (+48 22) 621 64 21; (+48 22) 621 48 58
http://www.cis.gov.pl e-mail: sekretariat@ijhar-s.gov.pl
GENERAL VETERINARY INSPECTORATE, VETERINARY
INSPECTION SERVICE
00-930 Warszawa, ul. Wspólna 30
tel./fax (+48 22) 628 85 11; (+48 22) 623 14 08
http://www.wetgiw.gov.pl e-mail: wet@wetgiv.gov.pl
PLANT PROTECTION AND SEEDS INSPECTION SERVICE (PIORIN)
00-930 Warszawa, ul. Wspólna 30
tel./fax (+48 22) 623 23 02; (+48 22) 623 23 04
http://www.piorin.gov.pl e-mail: gi@pior.gov.pl
NATIONAL ADVISORY CENTRE FOR AGRICULTURE AND RURAL
DEVELOPMENT IN BRWINÓW
05-840 Brwinów, ul. Pszczeliƒska 99
tel. /fax (+48 22) 729 66 34 (38); (+48 22) 729 72 91
http://www.cdr.gov.pl e-mail: brwinow_sekretariat@cdr.gov.pl
NATIONAL ADVISORY CENTRE FOR AGRICULTURE AND RURAL
DEVELOPMENT, BRANCH IN KRAKÓW
31-063 Kraków, ul. Meiselsa 1
tel./fax (+48 12) 424 05 00; (+48 12) 424 05 05
http://www.cdr.gov.pl/krakow e-mail: krakow@centrum.cdr.net.pl
NATIONAL ADVISORY CENTRE FOR AGRICULTURE AND RURAL
DEVELOPMENT, BRANCH IN POZNA¡
61-659 Poznaƒ, ul. Winogrady 63
tel./fax (+48 61) 823 20 81; (+48 61) 820 19 71
http://www.cdr.gov.pl/poznan e-mail: poznan_sekretariat@cdr.gov.pl
NATIONAL COUNCIL OF AGRICULTURAL CHAMBERS
00-930 Warszawa, ul. Wspólna 30
tel./fax (+48 22) 623 21 65; (+48 22) 623 11 55
http://www.krir.republika.pl e-mail krir@z.pl
NATIONAL UNION OF FARMERS, AGRICULTURAL CIRCLES AND
ORGANISATIONS
00-006 Warszawa , ul. Szkolna 2/4
tel./ fax (+48 22) 826 55 55; (+48 22) 827 30 01
http://www.kolkarolnicze.pl e-mail: biuro@kolkarolnicze.pl
74

NOTES
75

NOTES
76

ISSN 1427-0757