Leading sector of economy

Poland – one of leading global manufacturers of agricultural production. The commercial success of agricultural sector of the Republic Poland is assisted by the accelerated modernization of production potential owing to what export of competitive, high-quality agricultural and food production steadily increases.
In article actual interview of the vice-Minister of Agriculture and development of the village of the Republic Poland Yana Kristofa Ardanovsky about functioning of the Polish agricultural and food sector of economy and prospects of its further development is published.

Actual interviews

Poland – the big European country which has considerable territorial, human and economic potential, specific weight and which values in recent years essentially increased in the world economy.

Successes in development of agricultural industry and the food industry are especially appreciable.

The commercial success of agricultural sector of this country was assisted, first of all, by the accelerated modernization of production potential owing to what export of competitive, high-quality agricultural and food production steadily increases.

How the Polish agricultural and food sector of economy functions, editorial office of the magazine Harchov i pererobna promislovist asked to tell about prospects of its further development the vice-Minister of Agriculture and developments of the village of the Republic Poland Yana Kristofa Ardanovsky which visited the capital of Ukraine this summer.

Branches of the food industry of the Republic Poland increase output, it competitive, high-quality.

Possibly, I will not open a big secret if I will tell that Poland – one of leading global manufacturers of agricultural production – mister Ardanovsky emphasized. – The area of agricultural holdings exceeds 16 million hectares that makes about 12 % of the areas of the farmland of fifteen "old" states of the European Union and borrows more, than 15 % of the territory of the country. However serious positive changes in our agricultural industry began after the accession of Poland to European Union.

In what, first of all, they were shown?

- In acceleration of processes of restructuring and modernization, especially in the perspective farms which number exceeded 500 thousand. Now production scales that is especially appreciable by expansion of the areas of selskokhozugodiya, growth of a number of cattle (especially dairy), pigs and other agricultural animals quickly grow in these farms. Fast rates the food industry, agricultural export and the food develop. Export in 2004 (in the first year of the introduction of the country) increased in EU for 30,2 %, in 2005 – for 37, 2 %, in 2006 this indicator still grew.

In what, in your opinion, the reason of such considerable increase?

- The main factor of the accelerated development of the Polish agrarian and food sector after the accession to EU – support from the budget as in the form of direct surcharges, and assistance of technical and economic and social restructuring.

And support such constantly increases. If in 2004 the help as a whole made 11 billion zloties (including nearly 6 billions of the budget), last year it exceeded 17 billion zloties.

In what feature of the Polish food industry? What could our producers borrow at you?

- The structure of divisions of the food industry includes more than 19 thousand firms which are carrying out production of foodstuff and drinks, and also tobacco products. Nearly 18 thousand – are micro – and small firms, in each of which 9 workers are occupied on the average. Cost of the realized production made by these enterprises, makes about 23 % of cost of production of all food industry, and employment, respectively, makes 36,6 %. Privatization in the food industry is almost complete, since 2002 there are important changes of its subject structure – process of consolidation and the introduction in possession of firms of foreign and domestic strategic, branch or financial investors proceeds. At the same time there is a reduction of superfluous productions, specialization of production and concentration of functions of the enterprises goes deep.

The accession of your country to EU was essentially reflected in outputs of products. With what it is connected first of all?

- Really, integration with European Union essentially affected volume of production of the food industry. Acceleration of development of this sector took place already during the period preceding the introduction of Poland in EU. The main source of this lifting – development of export of foodstuff which increased from 14,1 % in 2003 to 20 % – in 2007, and also the accelerated process of industrialization of processing of the agricultural raw materials, caused mainly processes of adaptation of this sector to integration with EU.

It – in global measurement. And how domestic market reacted to growth of volume of production?

- Unfortunately, in development of food sector domestic market played a small part. Considerable stratification of society, high unemployment, and also low growth rates of a salary of the population was the reason of such situation. At the enterprises where 50 and more workers were occupied, growth of volumes of realization of production was assisted by lower growth rates of employment and an average salary.

What enterprises most comfortably feel in the market of production of foodstuff?

- In the Polish food industry declare itself global firms more and more. In 2004 nearly 40 branches of transnational corporations were involved in this sector of economy. Though their share rather small (only 0,2 % from all economic subjects functioning in the food industry), however the size of the income of realization of all production of the food industry reached 20 %. The greatest concentration of productions occurred in processing of meat, milk, grain production of pasta; sugar and confectionery branches; production of soft drinks, alcohol, beer, etc. At the same time increase in number of producers are in the last two years fixed only in production of poultry, processing of fruit and vegetables, production of oil and margarine.

The European market – wide, various. Whether wholly Poland takes of it advantages, possibilities?

- Certainly, prospects at us favorable. However, already right after the accession of Poland to EU and opening for the Polish producers of the big and well developed European market which totals more, than 400 million consumers, rapid growth of export of the Polish foodstuff and improvement of position of the Polish producers in the expanded Union came. Considerable dynamics of the accelerated development was felt by producers of sugar, milk and dairy products, confectionery of long storage, fruit and vegetable juice, drinks, pishchevkusovy and dietary products, etc. At the same time we increased an import of fish and fish products, tea and coffee.

Therefore, it is possible to tell that the economic situation of the Polish food industry stable, it steadily raises.

- Exactly so. After integration with EU position of our food industry improved that confirmed good preparation of this sector for work in the allied market. The branch enterprises annually achieve high profitability of managing, and the profit became the main source of their income. It is necessary to emphasize that improvement of economic indicators of managing is reached by private enterprises.

What branches of the food industry the stablest and competitive?

- In structure of sales of products of the food industry for several last years the most part is the share of meat branch, production of drinks and dairy products. As a whole the increase in release almost on all groups of products is noted. An exception – some types of drinks and tobacco products. The greatest growth and consequently, and the share in structure of realization of products of the food industry, is fixed in fish products, milk processing, and also in meat products.

Whether it is possible to compare a consumption level the population of the main foodstuff in Poland, to the level reached in EU countries?

- As a whole consumption of the main foodstuff in Poland, except for fruit, beef, fish and milk, is in the limits reached by EU countries. In our country people use the above-named products less, first of all, because of rather high prices. We use eggs, vegetative and animal fats, meat less. Though pork we use more.

Nowadays producers of foodstuff considerable attention give it to quality, safety. How with it in Poland?

- With the accession of our country to EU the domestic food industry joined in realization of policy of the European Union concerning improvement of quality of agricultural and food production, protecting unique products with a certain geographical binding or made in the traditional way. Such products can receive confirmation of the exclusiveness through registration, protection and assignment of certain signs: The protected name of an origin, The protected geographical binding or Is guaranteed traditional feature. It is necessary to tell that since March of last year in European Union new rules which concern registration and protection of geographical bindings and traditional names operate. The Polish producers strictly adhere to them.

The Ukrainian agricultural producers heard about the program popular in Poland which has the name Get acquainted with a good product. What its purpose?

- Since May 1, 2004 the Minister of Agriculture and developments of the village made the decision on the beginning of action of the new program Get acquainted with a good product instead of the program Good Polish product which acted earlier. A main goal of the program – informing on high quality of foodstuff; the program – voluntary and open for each businessman of the member country of European Union. The sign "PSHP" is appropriated to only those products which answer the criteria established by Scientific board concerning quality of foodstuff which structure includes independent experts. Designation by the called sign – is information which should help to the consumer to choose that product which more all suits it. Concerning assignment of the sign "PSHP" agricultural producers, and this procedure free have the right to application only.

What groups of products are covered by the called program?

- 14 primary groups are defined. It is meat and meat products, eggs and products of their processing, milk and dairy products, fruit, vegetables (including potatoes), mushrooms and products of their processing, grain and zernoprodukty, including bakery products, fish, seafood and products of their processing, soft drinks, mineral waters, honey, confectionery, herbs and seasonings, food fats, high-quality wine and alcoholic beverages, and also the combined products and products of deep processing on the basis of called above raw materials.

Who appropriates the sign "PSHP"?

- On the basis of the decision of Scientific board on quality of foodstuff the sign is appropriated by the Minister of Agriculture and village developments. Experts draw the conclusion on the basis of results of researches of products and raw materials, a consumer assessment, and also conditions of manufacturing of this or that product. Constantly to support very high level of quality of a product to which the sign "PSPH" is appropriated, the maximum periods of validity of a sign are provided. For products to which the sign is appropriated for the first time – till three years, the next time – till five years.

Summing up our conversation, whether it is possible to draw a conclusion, what the accession to EU positively affected all main sectors of the Polish economy?

- Certainly. High growth rates of the Polish economy, in particular, the agricultural and food direction, remain and this year. Access to very profitable market of meat in Japan, and also export of products on other considerable market – to South Korea gives additional chances of further growth. The horizons of our export though the allied market remains the most important site of our trade contacts thus extend.

(On magazine materials Harchova i pererobna promislovist).