Unilob – Miroslaw Zielinski
Competitiveness of the Polish Agriculture Sector after 4 Years of EU Membership
Miroslaw Zielinski
Unilob Poland
Unilob – Miroslaw Zielinski
Short characteristic of Polish agriculture
Unilob – Miroslaw Zielinski
Unilob – Miroslaw Zielinski
All pictures :
10.000 meters altitude
Unilob – Miroslaw Zielinski
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Unilob – Miroslaw Zielinski
-small, carved-up farms
-poor living standards
- ¼ of population → 6% GDP.
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Relatively young and active population
Unilob – Miroslaw Zielinski
Dichotomic farming sectorDichotomic farming sectorSince 1989 Polish agriculture and rural areas have undergone tremendous changes but still are way behind the rest of the economy.
Today there are almost 3 mln farms, 2/3 of them > 1ha
Average farm size: 6,59 ha (all farms included)
Average farm size: 8,44 ha (in the group of farms > 1ha)
Huge regional diversity: Northern regions – average 14 ha, Southern only 2,1 ha
Size of farms Share in farm number
Share in farming land
Smallest farms < 2ha 47,1% 5,8%
Largest farms > 50ha 0,8% 26,7%
Unilob – Miroslaw Zielinski
Unilob – Miroslaw Zielinski
Share and place of Polish agriculture in Europe (in %)
Main Agricultural Production
Unilob – Miroslaw Zielinski
Main Agricultural Production
Poland occupies the leading position in apple, in all types of berries and outdoor vegetables, e.g. onions, cabbage and cauliflowers production.
• poultry • sausages and hams• meat (pigs, cows, horses)• flowers• milk and milk related products• eggs
Other main EU export products:
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Agricultural holdings = small areas + to many employees + not effective production means
Individual farmers – mostly self sustainable approach.
Animal production - small intensity of breeding. Market-oriented holdings – developing and growing fast.
Agricultural production conditions differ in Poland, especially as compared to EU agriculture.
Unilob – Miroslaw Zielinski
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Unilob – Miroslaw Zielinski
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Unilob – Miroslaw Zielinski
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Unilob – Miroslaw Zielinski
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Unilob – Miroslaw Zielinski
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Unilob – Miroslaw Zielinski
Available at our web: www.unilob.pl/agro2007.pdf
Unilob – Miroslaw Zielinski
Current strength of Polish agriCurrent strength of Polish agri--foodfood tradetrade
between Poland and EUbetween Poland and EU
In 2006, the process of increasing importance of EU countries as trading partners for Poland continued.
In the export structure of 2006, EU Member States constituted 76.8%, and goods imported from the European Union – 63.1%.
The second largest group of Poland’s trading partners is the Commonwealth of Independent States, with 10.1% share in the export and 2.9% in the import of Poland.
Foreign trade in agri-food products in 2005-2006 broken down by groups of states (EUR million)
Unilob – Miroslaw Zielinski
0
1
2
3
4
5
6
7
8
2002 2004 2005 2006 2007
Import
Export
Source: Polish Food Conquers Europe, “Rzeczpospolita”
In bn euro
Current strength of Polish agriCurrent strength of Polish agri--foodfood tradetrade between Poland and EUbetween Poland and EU
Unilob – Miroslaw Zielinski
Primary fears of EU accession related to agriculture
Unilob – Miroslaw Zielinski
• Importance of sharing experience with potential future EU members
• History - Potential estimated costs of adjustment processes and integration
• Fears: 1. Shortage of own funds or low state budget will not allow to use structural funds,
2. Inflow of agricultural products,
3. Complicated bureaucratic rules to comply with,
4. Restrictions in production – quotas,
5. Closing down many agri-food enterprises,
6. Big cost of compliance and adjusting to EU hygienic regulations,
7. Foreigners will buy the Polish land
Unilob – Miroslaw Zielinski
Public opinions – statistical information
after 4 years of EU membership
Unilob – Miroslaw Zielinski
Public perception
The public opinion research conducted in April 2007:- 86% of citizens declares themselves EU votaries- 7% declares themselves as opponents.
Public satisfaction with EU membership
86%
7% 7%votaries
opponents
neutral
High level of public acceptance to EU proves we are satisfied with membership. The level of EU supporters is growing year by year.
Unilob – Miroslaw Zielinski
In August 2004 39% of citizens were convinced that integration brings more advantages than loses.
After 4 the first 3 positive effects graduated almost equally to:
• 35% open borders and freedom of traveling within EU• 35% benefits to agriculture and farmers• 30% open labor market for Polish citizens
In 2008 75% of Poles agree with benefits to agriculture – that is 16% more than in 2007.
The most comfortable group are farmers (55%) and employees at individual (62%)
According to Center of Public Opinion Research (CBOS):
Unilob – Miroslaw Zielinski
Governmental opinions:
- agricultural sector + rural areas, significantly influenced by the effects of the economic growth, - establishment of new jobs, - possibility to influence the Common Agricultural Policy (CAP), - Polish foreign trade in agri-food products demonstrate that agriculture and processing are doing well,
- Polish food recognized in Europe and beyond.
Unilob – Miroslaw Zielinski
AGRICULTURAL AND RURAL DEVELOPMENT SUPPORT
Domestic and European Union funds
- Since 2004 more resources goes to agricultural and rural support.
- Polish + EU budgets for implementation of the CAP and structural programmes.
- In 2004-2006, totalled PLN 89,800 million.
Domestic and European Union funds for agricultural and rural support in2004-2006
Unilob – Miroslaw Zielinski
Domestic and European Union funds for agricultural and rural support in 2004-2006
(excluding KRUS)
0
2
4
6
8
10
2004 2005 2006
Domestic
EU
In bn PLN
Unilob – Miroslaw Zielinski
Growth of prices of agricultural land
and
negotiated temporary protective periods
in land turnover
Unilob – Miroslaw Zielinski
Land prices vary greatly from region to region. New owners are mostly seeking to take land out of agricultural use, in order that they might gain higher prices from its sale.
The prices of agricultural land in Poland < UE-27 average but > Czech Republic & Lithuania.
Unilob – Miroslaw Zielinski
Projections of price increase for the agricultural land: - direct farming subsidies,- agricultural production financially rewarding,- the demand for land exceeds supply. Polish Land More Expensive Than German
In Brandenburg, in early 2008 the land was cheaper than in Poland wherehe price amounted €2729 per hectare.
Negotiated temporary protective periods in land turnover
- sensitive negotiations with EU
- the longest 12-year protective period in land turnover
- exemptions to individual farmers who lease and cultivate the land for 3-7 years
- ways of evading land turnover limitation
Unilob – Miroslaw Zielinski
Benefits and disadvantages of EU accession
Unilob – Miroslaw Zielinski
Benefits for agriculture:
- Direct supplemental payments for land cultivation
- EU subsidies for farmers for complying with environment protection rules,
- Subsidies for farmers for cultivating deficit agricultural products
- Improved products quality and hygienic standards of cultivation and farming
- Abolition of trade limitation among EU members countries
- Limitation of food import from non EU markets decreases the competition
- Food export subventions for farmers
- Polish farmers receive earlier and higher pensions
Unilob – Miroslaw Zielinski
Disadvantages for agriculture:
- High cost of introduction of EU norms
- Direct land supplemental payments makes the some farmers lazy
- Unequal subsidies within EU lower competitiveness
- Lower ability to obtain subsidy and structural funds
-Often empty promises of big money out of reach
Unilob – Miroslaw Zielinski
Summary - Conclusions
The accession of Poland to the European Union turned out to be beneficial.
The Polish market was not flooded with the products from EU.
The Polish exports increased.
The labor productivity and the quality of products is higher.
Unilob – Miroslaw Zielinski
3 summary points
• Farmers are the first, the biggest direct beneficiares of EU integration,
• Polish agricultural products turn to be competitive at UE market,
• Integration with EU caused improvement of market conditions of Polish agriculture.
Unilob – Miroslaw Zielinski
THANK YOU FOR YOUR ATTENTION
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Unilob – Miroslaw Zielinski
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