Poland, thanks to its natural conditions and geopolitical location, has a large economic potential, also related to the production and export of various types of products. The sector in which the country has been particularly at the forefront for several years is the sector of agri-food products, although Polish silver production is also doing well.

The fact that Polish apples, cereals and meat can be found in many corners of the world has long been known. It has long been known that Polish food is extremely appreciated by foreign consumers. But what exactly is the structure of Polish food exports and what are its economic results?

Ecological, good and cheap

Why do international recipients and consumers love Polish food the most? This is due to several important factors. First of all, Polish products of all types (starting from sweets, through fruit, meat, ending with cereals) are considered good and tasty. Secondly, the production in the country stands well in terms of ecological production and manufacturing methods. Food is good because it is more natural than its Western counterparts. Another issue is competitive prices. Although, yes, Polish food is not the cheapest of all, its purchase and import costs are still competitive compared to other offers on the international market. The exchange rate of the zloty, which is usually favorable for exporters against the euro, is also significant.

The success of Polish food abroad is evidenced by export indicators. And these achieved record highs in 2021. The value of Polish food exports increased by 9% compared to exports in 2020. The success of Polish trade was significantly influenced by the dynamic adaptation to the new operating conditions imposed in connection with the Covid-19 pandemic.

An increase in food exports was already recorded in the first half of 2021: from January to June 2021, the value of sales of agri-food products outside Poland amounted to PLN 17.6 billion. It was 5.3% more than in the previous year. How does it compare to imports? This also increased by 3.2% compared to 2020 and reached the value of PLN 11.8 billion. However, it still means that Poland exports more than it imports, and therefore has a positive trade balance.

The structure of export goods in the sector of agricultural and food products

What exactly is the commodity structure of exports of Polish agri-food products? What do Polish producers sell the most? A detailed report on the situation can be found in the KOWR publications.

Undoubtedly, the structure of these goods is dominated by meat and meat products. Already in the first half of 2021, revenues from the sale of meat products amounted to EUR 3.2 billion and increased by 3% compared to the previous year. In the perspective of the whole year 2021, the share of meat and meat products in Polish food exports amounted to 19%, reaching the value of EUR 7 billion (9% more than compared to the perspective of 2020). Poultry meat (38%), processed meat (25%), beef (22%) and pork (12%) had the largest share here. The export of live animals and other meats was therefore relatively small.

The category of export goods that ranked second in the statistics are cereal grains and processed products. Here, too, an increase in the value of exports was recorded already in the first half of 2021, reaching PLN 2.3 billion (9% more compared to the first half of 2020). Throughout 2021, exports of cereals and cereal products accounted for 13% of Polish food exports, gaining a value of EUR 4.7 billion and increasing by a full 10% compared to the entire year of 2020.

The next category of the most frequently exported goods turned out to be tobacco and tobacco products (11% of total Polish exports), reaching the value of EUR 4.1 billion in 2021. However, despite a relatively high turnover, it was the only product sector whose exports decreased (by 4%) compared to 2020.

Sugar and confectionery also have a relatively large share in Polish exports. In 2021, they accounted for 7% of all exports, and sales abroad reached the value of EUR 2.8 billion. Here, too, a fairly significant increase was recorded - by 9% compared to 2020.

A similar share in the entire Polish export (7%) is also made by dairy products and products. The export of these goods increased by 13% and reached the value of EUR 2.6 billion in 2021. Poland is the 7th exporter of dairy products in the European Union and 10th in the world! The long tradition of cheese-making is also significant here.

The export of fish and fish products also turned out to be quite significant. Its share reached 6%, and the value of products sold abroad amounted to EUR 2.4 billion. The increase in exports compared to 2020 was recorded at the level of 4%.

Vegetables, mushrooms and their preserves had a 5% share in Polish exports. The value of products sold abroad amounted to EUR 1.9 billion, and the recorded increase compared to the previous year reached 7%. Poland is the world's largest producer (and exporter) of mushrooms. It was similar in the case of fruit, nuts and their preserves. The export value of these goods reached EUR 1.7 billion, increasing by as much as 15% compared to 2020. It should come as no surprise that Poland is still the world's export leader when it comes to apples, while not everyone knows that Poland is also one of the leading exporters of frozen strawberries.

A 2% share (worth EUR 0.9 billion) in Polish exports of agri-food products were oilseeds and vegetable fats. And although it may not seem like much compared to the food categories mentioned above, it is worth noting that the value of exports of these products increased compared to 2020 - it amounted to as much as 27%!

A similar value to oilseeds and vegetable fats was achieved by the coffee, tea and cocoa category: 2% share in exports and a value of EUR 0.9 billion. Here, however, the value of exports was more similar to that of 2020 and increased by only 2%.

Another category of products for which the increase in the value of export was strongly noticeable are vegetable and fruit juices. And although the total value in the entire structure of Polish food exports is 2% (EUR 0.7 billion), an increase of as much as 22% was recorded here.

At the end of the structure of Polish exports is alcohol. Its share in total Polish exports in 2021 amounted to 2% and reached the value of EUR 0.7 billion. This category also saw an increase in sales abroad (by 9%).

19% of Polish food exports (EUR 7.0 billion) were other agri-food products.

Where does Poland sell food to? Geographical structure of exports

The geographical structure of Polish exports is also impressive. Already in the first half of 2021, Polish agricultural and food goods went to 192 countries around the world! Polish products are imported by countries on all continents, but it still dominates the European market - and in particular the EU market.

The export of Polish products to EU countries alone reached EUR 12.6 billion (and increased by 6.8% compared to 2021). Interestingly, in the very European geographical structure of Polish food exports, a considerable geographical concentration can also be noticed. Neighboring Germany has been the largest importer of Polish food for many years. In the first half of 2021, exports of Polish goods to this country amounted to 4.3% and increased by 5% compared to the same period in 2020.

Important recipients of Polish products in Europe are also France (EUR 1 billion, increase by 15% in 2021), the Netherlands (EUR 1 billion, increase by 8% compared to 2020), Italy (EUR 0.95 billion, increase by 13 %), as well as the Czech Republic (EUR 0.7 billion - an increase of 1%).

And what is the geographical structure of Polish exports outside the European Union? The scale of sales of Polish food outside the EU reached EUR 5 billion in the first half of 2021 (2% more than in the first half of 2020). Exports to the countries-members of the Commonwealth of Independent States had a large share (EUR 894 billion), which increased by 6% compared to the previous year. The largest importers of Polish food from the countries of the Commonwealth of Independent States turned out to be Ukraine (EUR 377 million - an increase of 3%), the Russian Federation (EUR 312 million - an increase of 18%) and Belarus (EUR 127 million - a decrease of 8%).

Exports to other countries (belonging neither to the European Union nor to the Commonwealth of Independent States) amounted to 4.1 billion and increased by 1% overall. The largest recipients of Polish food include the United Kingdom (EUR 1.4 billion - although a decrease of 9% was recorded here), Saudi Arabia (EUR 333 billion - a decrease of 9%), the United States EUR 284 million - an increase of 15% ), Algeria (EUR 264 billion - more than double), Israel (EUR 133 million - increase 15%), Norway (EUR 128 million - increase 20%), China (EUR 110 million - increase 10%) and Morocco ( €94 million – a two-and-a-half increase).

What future awaits Polish food exports?

Poland has great prospects as an exporter of agricultural and food products. However, a significant change in the structure of the market and in the structure of exports should be expected in 2022. This is related to the war in Ukraine and the embargo imposed on the Russian Federation and Belarus. And it should be noted that it was Ukraine, Russia and Belarus that were among the largest partners of Poland among the Commonwealth of Independent States.

However, this situation does not rule out the chances of Polish food and it is still possible to maintain high export revenues. Firstly, attention should be paid to the upward trend in exports outside the EU (for example in Norway), especially further afield, such as the United States, North African countries, China or the Middle East. It should also be taken into account that Ukraine, due to the ongoing war on its territory, will not be able to generate as much export products as it has done so far. And the export of food, especially cereals, from Ukraine was significant. As a result, there will be a significant "gap" on some markets (including African) and attention may be paid to the offer of Polish agri-food products.