Fruit and vegetable market in Poland

28 August 2017
According to CSO data, fruit production in Poland in 2016 reached approx. 4.6 million tonnes compared to 4.05 million tonnes in the previous year. Harvests of pears and plums increased most (by more than 20%). Production of apples rose by 14.6% to 3.6 million tonnes. Lower were only harvests of strawberries and raspberries.
Harvests of field vegetables increased by 20% to almost 4.5 million tonnes and those of vegetables grown under cover increased by 6.1% to 1.1 million tonnes. In the EU, harvests of fruit increased from 39 to 39.5 million tonnes and of vegetables by about 3% to 64.3 million tonnes. The increase in production in the majority of the European countries was due to the favourable conditions for horticultural crops for the major part of the growing season.
 As a result of higher harvests, production of fruit preserves in Poland was in the 2016/17 season higher by about 20 thousand tonnes than in the previous season and amounted to 1.15 million tonnes. Decisive was the increase in production of sour cherry, black currant, raspberry and plum preserves (mainly frozen fruit and concentrated juice). Only production of strawberry preserves decreased. Production of vegetable preserves increased by about 4% to 1,245 thousand tonnes. Higher was production of all groups of preserves and production of frozen vegetables increased most, to a record-breaking level of 650 thousand tonnes. In the 2016/17 season, Poland strengthened its position as the EU’s largest producer of frozen fruit and concentrated fruit juice and the second, after Belgium, producer of frozen vegetables. Total production of juice, nectars and fruit and fruit and vegetable drinks increased from 1.75 million tonnes to a record-breaking level of 1.87 million tonnes. Decisive was an increase in production of apple juice, including, in particular, NFC juice. In 2016, the financial situation of businesses in the fruit and vegetable industry was as good as in the previous year, thus most companies did not have any problems with purchasing raw materials.
 In the 2016/17 season, the total export volume of fresh horticultural products amounted to 1.76 million tonnes, when compared to 1.68 million tonnes in the previous season. The export of apples, dominant in the sales of fresh fruit and vegetables increased from 985 thousand tonnes to about 1 million tonnes. What primarily increased, were the sales to Belarus. The export of apples to this country in the 2016/17 season was similar to the sales volume to Russia, before this country in August 2014 introduced the embargo on the import of fresh, frozen and dried fruit and vegetables from the EU countries. In the 2016/17 season, only the export of raspberries, strawberries and tomatoes was lower that in the previous season. The export of fruit and vegetable preserves increased from 1.61 to 1.67 million tonnes. The export of frozen fruit and vegetables increased by about 2% to 805 thousand tonnes, and of concentrated fruit juice by about 4% to 345 thousand tonnes. Lower than in the 2015/16 season was only the volume of foreign sales of pickled vegetables (mainly canned cucumbers and ketchup), as well as the export and re-export of dried onions and canned corn. The average export prices of nearly all fruit, vegetables and their preserves were lower in the previous season. Only the prices of strawberries and their preserves rose. As a result of the decreased prices, the export value of fresh fruit and vegetable declined from EUR 839.2 to 833 million, and of fruit and vegetable preserves from EUR 1,683 to 1,676 million. Total revenues from the export of horticultural products decreased from EUR 2.52 billion to EUR 2.51 billion, and including champignons and champignon preserves, remained at the level of EUR 2.96 billion. This accounted for 12.0% of the export value of the agri-food sector, when compared to 12.2% in the 2015/16 season.
 The import of exotic fruit, accounting for more than 90% of the total import volume of fresh fruit decreased from 1.37 to 1.31 million tonnes. The decrease in the import resulted from the rise in the prices of almost all fruit from other climate zones. The highest decrease was recorded for oranges, nectarines, kiwi fruit and watermelons. Slightly higher was only the import volume of lemons, avocados and persimmons. From among temperate zone fruit, only the import of plums and cranberries increased. Higher domestic harvests resulted in the reduced import of almost all fresh vegetables. Only the import of peppers and cauliflowers increased. A significant impact on the decrease in the import of tomatoes, cucumbers and lettuce resulted from a very high level of the import prices of these products in the first half of 2017, due to the low supply in the southern EU countries. In the group of fruit and vegetable preserves, there was an increase in the import of frozen and dried fruit (mainly frozen berries and prunes), concentrated orange juice, exotic fruit purees, canned pineapple, pickled vegetables and canned tomatoes. Lower was the import of frozen and dried vegetables, tomato concentrate, canned peaches and nut preserves. The total import volume of fruit and vegetable preserves decreased by 1% to 654 thousand tonnes. The positive balance of trade in fruit, vegetables and their preserves increased from EUR 256 to 300 million, and without champignons and their preserves, the negative trade balance decreased from EUR 171 to 119 million.
 In 2016, the share of the EU countries in the export value of fruit, vegetables and their products was 79.3% when compared to 79.8% in the previous year. The share of the remaining countries (without the CIS countries) increased from 7.5 to 8.1%. The share of Belarus increased from 6.1 to 7.5%. The increase in the share of Belarus in the foreign sales value was smaller than that in the export volume, as a result of very low average weighted prices of products exported to that country.
The buying-in prices of almost all fruit and vegetables in the 2016/17 season were lower than in the previous season. Only the prices of strawberries, cherries, currants and cauliflowers increased. The profitability of the cultivation of most horticultural products significantly deteriorated. Deeply unprofitable remained the production of black currants.
 It is estimated that in the 2016/17 season, the average retail prices of fruit and their preserves increased in relation to the previous season by about 3.6% and the prices of vegetables and their preserves by about 2.7%. Decisive was the rise in the prices of most exotic fruit and much higher in the first half of the 2017, when compared to the first half of the previous year, level of the prices of imported tomatoes, cucumbers, cauliflower and salad vegetables. As a result of the rise in the prices, the consumption of fruit and their preserves declined from 43.4 to 42.6 kg per capita, and of vegetables and products preserves from 58.3 to 58.2 kg per capita.
 The share of consumption in the distribution of the domestic volume of supply of fresh fruit produced in Poland (export, consumption, supplies for processing) decreased from 28 to 27%, and of vegetables from 46 to 44%. The export share in the supply of fruit remained at the level of 19%, and in the supply of vegetables it rose from 11 to 12%. In the 2016/17 season, supplies for processing accounted for 54% of the supply of fruit and 44% of the supply of vegetables, when compared to, respectively, 52 and 43% in the previous season.
 In 2017, harvests of fruit will be significantly lower than in the previous year. This will be due to strong spring frost in April and May, which damaged to flowers and buds of most species of fruit. The lowest will be the production of sour cherries, cherries, peaches and apricots. On the other hand, harvests of most field vegetables will not change significantly, but their final level will depend on the weather conditions in the summer and autumn. The buying-in prices of most fruit will be higher than in 2016. They will also rise in relation to the low, after harvests in 2016, buying-in prices of vegetables (mainly brassica and root vegetables). The price rise might not compensate for the decline in harvests of fruit, hence the income situation of their producers in the 2017/18 season may be worse than in the previous season.
 In the 2017/18 season, the production of fruit preserves will be lower than the 2016/17 season, including mainly frozen fruit and concentrated fruit juice. The scale of the decline in the production of vegetable preserves will be lower. On the other hand, the upward trend in the production of juice, nectars and fruit and fruit and vegetable drinks will continue.
 As a result of the expected rise in the export prices of most horticultural products and their preserves (especially sour cherry, strawberry and apple preserves), total revenues from the export of these products will decrease less than the sales volume. The import prices of most fruit and vegetables and their preserves should be lower than in the 2016/17 season. Decisive will be the expected decrease in the prices in the first half of 2018 when compared to the very high prices in the first half of the previous year. The balance of foreign trade in fruit, vegetables and their preserves will remain negative, although it may decrease due to a significant fall in the import value of vegetable products.
 In the 2017/18 season, the retail prices will rise and the consumption of fruit and their preserves will decrease. The expected decrease in the prices of imported vegetables may result in the decrease in the average retail prices of vegetables and increase in their consumption.

Na podstwie mat. IERGŻ-BIP Analizy

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