Polish FMCG market

We export mainly to the EU, but we go global as well

Friday, 06 October, 2017
The data of the Agricultural Market Agency show that since 2003, exports of agri-food products have increased sixfold, and we have systematically achieved a considerable surplus over imports in trade in these products, exceeding EUR 7 billion annually. For several years, the share of exports of agri-food products in the total value of exports has exceeded 13%, whereas it was less than 9% at the moment of Polish accession to the European Union. Above 80% of Polish exports of products in this sector reach the Community markets. The Ministry of Development calculates that in the first half of 2017, we sold EUR 12.8 billion worth of food and agricultural products abroad, which is 9.6% more than the year before. Maintaining this rate in the next months would mean setting a historical record, at a level of approx. EUR 26 billion. It is worth stressing that we achieve such high dynamics in spite of many unfavourable factors, such as restrictions and bans on imports, introduced by some countries, including such important ones as China and Japan, due to epidemics of animal diseases. The largest share in Polish exports is held by meat and its preparations, tobacco and tobacco products, dairy products, as well as cereal preparations. However, a much wider assortment finds purchasers abroad, and there are many fields in which we hold a significant position in Europe and worldwide.
We are definitely among the leaders of fruit and vegetable production and exports, holding the first position in the European Union with regard to apples, cherries and carrots, and the second in the case of strawberries and cucumbers. Poland comes sixth in the European Union in the area of the production of confectionery products. Moreover, the community states, in particular Germany and the United Kingdom, get the majority of our confectionery exports, the value of which is estimated at approx. PLN 6 billion annually. However, confectionery manufacturers also succesfully seek more distant and exotic outlets across almost the entire world. They find customers in China, Vietnam, Korea, United Arab Emirates, African countries, Canada and the USA. Our specialty is chocolate.

A good example of a sector that successfully looked for opportunities abroad in the face of a crisis, including the one caused by the Russian embargo, is the dairy sector. The exports of surpluses have been on the rise for nearly ten years, reaching almost EUR 1.5 billion in 2016 according to the Eurostat calculations, but they have been present more strongly outside the geographically closest markets since the Russo-Ukrainian conflict. For instance, we sell powdered milk to such countries as Algeria, the Philippines, and Vietnam. The calculations of BGŻ BNP Paribas’ analysts show that due to favourable prices worldwide, exports of the dairy industry in the first half of the year rose by as much as 42%, beating the previous record of 2014. In 2016, slightly more than 45,000 tons of butter were sold abroad, accounting for 22% of its entire domestic production.

As for meat and its preparations, the case was very much like with the dairy industry: their share in the total export of agri-food products reached approx. 20% in the previous year. After the collapse of the Russian market, manufacturers would primarily look for opportunities in the countries of the former USSR, including Belarus and Ukraine, but also Moldova, Tadjikistan, or Turkmenistan. However, there is a substantial rise in exports to the USA, Saudi Arabia, Israel, and Hong Kong. Meat preparations also reach African countries such as the Congo, Gabon, Ghana, Angola, or Ivory Coast, albeit in small amounts.

Although long gone are the times when vodka was the main symbol of Polish exports, sales of alcohol products abroad still fares quite well. Since the Polish accession to the European Union, it has tripled, reaching EUR 176 billion in 2016, which was a historical record. For many years, the main directions have been France, the USA, Canada, and the UK, but this map also features Chile, Mexico, Ukraine and Italy.

According to data of the Central Statistical Office of Poland  (GUS), we exported almost PLN 132 million worth of honey last year, reaching mainly France, Germany and Belgium. An interesting fact is that many African countries are supplied with coffee and tea from Poland.


tagi: export , Polish food ,