Overview Polish dairy sector
Being the 5th largest producer in the EU, accelerating growth of milk production after the abolishment of the milk quota's, it is worth to have an insight in the development of the Polish dairy sector. The Agricultural Department has made a quick scan about these developments of the Polish Dairy sector, including an overview of the most important dairy processors.
Production
Poland's EU accession provided access to a large market of consumers with a high purchasing power, resulting in a positive impact on the development, and a major restructuring, of the sector. Milk production steadily increased after accession, but has accelerated after the abolishment of the milk quota's. However, the economic structure is still fragmented in comparison to the EU-15 Member States. Continued concentration and modernization will result in improved efficiency, which is a prerequisite for building competitive advantages on the international market.
Poland has good agro-climatic conditions for milk production and has price-cost competitive advantages. Currently, Poland has approximately 130.000 dairy farms with approximately 2,3 mln cows. Wielkopolska and Podlaskie are the two voivodships with the strongest presence of dairy production and processing facilities.
Consumption
The development of the Polish dairy sector is supported by a growing domestic market (dairy consumption in Poland is lower than in the EU 15 MS), especially for dairy products with added value such as cheese. Poland has a growing demand for higher quality cheese with a wider variety of flavors and tastes. Also, rising interest in healthier products increased sales in Poland. Dairy manufacturers responded to this trend, present in several EU member states, by offering products lower in fat and/or sugar for example.
Gijs van den Berg