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Poland Agribusiness Report Q1 2014

Poland livestock market to report the strongest growth as a result of increased export potential to EU and Asia


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2014-01-09 08:00:05 - Poland Agribusiness Report Q1 2014 - a new market research report on companiesandmarkets.com

We see the most growth potential for the livestock sector in Poland owing to increased export potential to the EU and Asia. The livestock industry in the country is relatively price-competitive compared with industry majors such as Brazil and the US, but it does not necessarily have the right export networks and infrastructure to rival these countries. We believe a law prohibiting kosher beef production, the horsemeat scandal and recent quality concerns in the beef industry will limit growth potential in the beef sector, but poultry and pork are likely to continue to perform strongly. For grains, we are turning more positive on corn production prospects in the long term as the country is investing in area expansion for the

 

 

crop. For sugar, we see growth potential limited by the recent U-turn in the EU´s biofuels policy, which restricts the amount of food crops to be used in the production of ethanol.

Corn production growth to 2016/17: 71.8% to 4.1mn tonnes. This extremely high number is due to base effects but also to recent investment in expansion in the crop on the back of high global prices and tight regional markets. Now that global prices have moderated, we expect production growth to be more limited and come mainly from yield rather than area, but we believe 4.1mn tonnes by the end of the forecast period is achievable.

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