According to Marcin Hydzik, Chairman of the Board of Directors of ZPPM, the condition of the dairy industry in Poland in the near future will depend on several factors. One of the key ones will be the price of finished products and their manufacturing costs, such as energy, packaging, transportation and wages. Unfortunately, there is no improvement here, which may affect sales levels.
On the other hand, raw material prices have declined, allowing dairy plants to catch their breath. However, the cooperatives have found themselves in a difficult situation – the owners, i.e. farmers, will not easily accept price cuts, having constantly high production costs, and the boards are worried about the survival of their plants.
Another factor that will affect the dairy industry is the decline in export volumes. Poland is losing its price advantage over foreign competitors, which has affected the decline in exports. Inflation is forcing Poles to save, which could affect sales, and the influx of refugees from Ukraine has not contributed to a significant increase in sales commensurate with the country’s population growth.
Marcin Hydzik believes that exports could be a way to improve the dairy industry. A change in China’s COVID-19 policy could boost demand in the country and contribute to higher world prices. Nevertheless, it is important to keep in mind that in the coming years you have to rely less and less on the Chinese market, as this country wants to achieve self-sufficiency in terms of milk production.
