How Corona-crises impacted Polish Agricultural Sector

Below we present some main conclusions of the presentation by Michal Siwek (head Food&Agri of BNP Paribas CEE). More details are to be found in the presentation here.

• Closures and limitations in domestic and international HoReCa channel broke established business relations and sales routes, demand from retail chains and traders replaced it however with lower prices offered.
• The poultry sector in Poland came into the pandemic with record high placement levels and clashed against off-take disturbances. As production run in cycles that need to be planned and the producers have limited flexibility the initial turmoil distorted the market for the few following months.
• Milk production processing has been affected only to a small extent by the COVID-19 pandemic. The COVID-19 pandemic had a positive impact on the consumption of dairy products in Poland – the increase in demand regarded in particular drinking milk and hard cheese.
• A significant increase in demand for some root vegetables, onions and potatoes was observed, it was driven by large purchases of long-term staple products (flour, pasta, rice, etc.).High demand sustained later on the market, lower export levels were a result of not a good harvest results in previous year, hence lower availability of ware for sale.
• Demand for potato processing products (primarily French fries) was significantly reduced due to restaurants and canteens closures. Alternative sales channels (observed increase in the retail) could not sell the excising stock, as 80% of the French fries in Poland is sold via HoReCa – this resulted in French fries prices collapse.

The embassy published a separate report on the impact of Corona on cut flower producers in Poland. You can find the report here.