In recent years, the importance of foreign trade in agri-food products has been growing steadily in relation to the total export from the country. In 2022, it was 13.8 percent of the “total”, and in 2023, it was already 14.7 percent. Moreover, only in the relation of 2022 and 2023, the value of agricultural export from Poland increased by 8.1 percent.
The numbers must be impressive – especially when viewed from a historical perspective. In the year of our accession to the European Union, Poles exported food worth EUR 5.2 billion outside the country. In 2013, the EUR 20 billion barrier “broke” for the first time, in 2019 we reached the dream of EUR 30 billion for the first time, EUR 40 billion was recorded for the first time in 2022, and last year we exceeded the magic EUR 50 billion barrier.
We also come out on top here, because the balance of trade in goods within the discussed category is favorable for us. Despite the increase in food imports to Poland last year by 3 percent, the balance soared by 19 percent, which amounted to as much as EUR 18.6 billion, or over PLN 85 billion, in Poland’s favor.
What do these results show? Firstly, that Polish products are still competitive in terms of price, while maintaining the right balance between price and quality. Secondly, we know that diversifying the directions of foreign trade makes sense, because revenues from cooperation with non-EU markets, for example, are progressive. Thirdly, we learned that the negative impact of important cost factors, such as transport, fuel or energy costs on shipping services, is weakening. Another good sign is the certain resilience that Polish exports show in relation to certain difficulties that the main trading partner, the German economy, struggled with last year. In 2023, the growth dynamics of the value of exports calculated year on year were slightly lower, but this should be blamed primarily on price declines on a global scale and lower transaction prices in international trade.
Who do we trade with?
Last year, as much as 73% of domestic food shipments went to the internal market of the European Union. This translated into a record value of EUR 38 billion and was 7% higher than in 2022. Germany was again the main recipient of domestic food shipments. Goods worth EUR 13.3 billion went to our western neighbor (an increase of 11% y/y), which constituted 26% of shipments to the European Union market. 6% of EU sales from Poland went to the Kingdom of the Netherlands and France, 5% each to Italy and the Czech Republic, 3% to Spain, 2% each to Hungary, Romania, Belgium, Denmark, Slovakia, Lithuania and Sweden.
We should be pleased with the consistent continuation of the strategy aimed at diversifying export directions to third countries. In 2023, counting year-on-year, we recorded an 11% increase in the value of trade and exported goods worth EUR 13.75 billion. Great Britain was still a key partner here, where products worth EUR 4.2 billion were sent. Ukraine came in second place – EUR 1 billion, followed by the United States – EUR 870 million, Nigeria – EUR 402 million, Turkey – EUR 389 million (more than double the increase).
What do we ship?
As much as 19% of the value of the national export structure was taken up by meat, meat products and livestock. This translated into almost EUR 10 billion in exports alone and showed that the animal breeding market is a pillar of stability and development of the Polish agricultural economy. Poultry meat reigned supreme here (41.5% of sales value). Meat products accounted for 25.4% of this pool, beef for 22.2%, pork for 8.4% and livestock for only 1.5%.
The export of cereal grains and processed products was worth EUR 7.6 billion (15 percent of the total), and tobacco products EUR 5.4 billion (11 percent). Cereals and tobacco also recorded record increases in the value of exports – 15 and 26 percent, respectively.
Other important export categories for Poland include sugar and confectionery (EUR 3.8 billion in value), dairy products (EUR 3.3 billion), fish and fish products (EUR 3.1 billion), vegetables (EUR 2.6 billion), fruit (EUR 1.8 billion), oil seeds and vegetable fats (EUR 1.7 billion), coffee, tea and cocoa (EUR 1.1 billion), juices (EUR 800 million) and alcohol (EUR 700 million).
The results are getting better and better. The agri-food sector is proving that professionalization makes sense. However, the coming years, due to EU regulations and political uncertainty in Europe, are a bit of an unknown.