1. Unilob – Miroslaw Zielinski Competitiveness of the Polish Agriculture Sector after 4 Years of EU Membership Miroslaw Zielinski Unilob Poland

2. Unilob – Miroslaw Zielinski Short characteristic of Polish agriculture

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4. All pictures : 10.000 meters altitude

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6. Unilob – Miroslaw Zielinski -small, carved-up farms -poor living standards - ¼ of population → 6% GDP.

7. Unilob – Miroslaw Zielinski Relatively young and active population

8. Unilob – Miroslaw Zielinski Dichotomic farming sector Since 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

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10. Unilob – Miroslaw Zielinski Share and place of Polish agriculture in Europe (in %) Main Agricultural Production

11. 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:

12. Unilob – Miroslaw Zielinski 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.

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18. Unilob – Miroslaw Zielinski Available at our web: www.unilob.pl/agro2007.pdf

19. Unilob – Miroslaw Zielinski Current strength of Polish agri-food trade between Poland and EU between 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)

20. Unilob – Miroslaw Zielinski Source: Polish Food Conquers Europe, “Rzeczpospolita” In bn euro Current strength of Polish agri-food trade between Poland and EU between Poland and EU

21. Unilob – Miroslaw Zielinski Primary fears of EU accession related to agriculture

22. 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

23. Unilob – Miroslaw Zielinski Public opinions – statistical information after 4 years of EU membership

24. 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. High level of public acceptance to EU proves we are satisfied with membership. The level of EU supporters is growing year by year.

25. 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: 1.35% open borders and freedom of traveling within EU 2.35% benefits to agriculture and farmers 3.30% 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):

26. 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.

27. 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

28. Unilob – Miroslaw Zielinski Domestic and European Union funds for agricultural and rural support in 2004-2006 (excluding KRUS) In bn PLN

29. Unilob – Miroslaw Zielinski Growth of prices of agricultural land and negotiated temporary protective periods in land turnover

30. 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 Czech Republic & Lithuania.

31. 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

32. Unilob – Miroslaw Zielinski Benefits and disadvantages of EU accession

33. 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

34. 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

35. 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.

36. 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.

37. Unilob – Miroslaw Zielinski THANK YOU FOR YOUR ATTENTION WWW.UNILOB.PL

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