Prices for fruit in Poland are rising. That’s why the domestic harvest is getting more popular in Poland.
This year many Polish farmers have had labor problems on their farms which together with frosts in May and lack of water in early Spring and the pandemic, have caused relatively high prices for fruits in Poland. Corona virus changed the market giving more space for digitalization and online selling. Many farmers saw this opportunity and started to sell their products online. Many others went even a step further and announced on the Internet the possibility of own fruit harvest.
There are various versions of the harvest: people can harvest the amount they need and pay less to the farmer or even harvest more and receive payment in the fruit. Farmers can then put the rest of the harvested fruit on the market and they don’t have to be worried for the labor.
The whole profit goes to the farmer, and the clients are sure they have a fresh product of good quality. Also the food chain is shortening which is one of the current trends for healthy food.
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New VAT rates on certain food in Poland
The new regulations, postponed due to the Covid-19 pandemic, defining the scope of application of VAT rates will become effective from 1 July - reminds "Dziennik Gazeta Prawna".
The new VAT rates will include bread and pastry products. Situations of differentiation of VAT rates for these products will be eliminated. From 1 July 2020, one 5% rate will apply.
VAT for spices will also be standardized. Entrepreneurs will have to apply an 8% rate. Until now, the rate was 23% for processed spices, and 5% for certain unprocessed spices.
The new VAT matrix also reduced the tax on tropical and citrus fruits, pistachios, almonds and coconuts from 8 % to 5%. The same goes for soups, broths and homogenised and dietetic foods. Also the rate for products for babies and children will be reduced up to 5 percent,
Higher VAT rates will include firewood (change from 8% to 23%), lobster, octopus and other crustaceans, molluscs, aquatic invertebrates and preparations thereof, caviar and caviar substitutes (increase from 5% to 23%) and ice used for food and other refrigeration purposes (change from 8% to 23%).
E-grocery: Food sells 15.7% better than last year
According to the analysis of the Household Panel GfK Polonia, in the first three months of this year, the percentage of households that have ever purchased FMCG (Fast-Moving Consumer Goods) products online has increased significantly over the year (from 15% to 24%). The category of cosmetics and care products grew the fastest, by 41.4%. In turn, e-grocery sales were 15.7% better than last year.
- In the case of eFMCG, we are constantly talking about the channel, which in 2019 had a 1% share in the FMCG market. However, in the search for sources of growth, this direction seems to be one of the most promising.
In the first quarter of 2020, the eFMCG share was 1.3%. So there is room for further expansion and in the next 2-3 years we can expect an increase in e-commerce share to 2-3% of the total value of FMCG sales in Poland – say the GfK Polonia experts.
The observations of GfK Polonia show that as a result of the emergence of the pandemic, the general definition of the convenience trend in consumer perception has changed, which opens the perspective of dynamic development for the e-commerce industry. Today, convenient shopping is above all safe shopping. In the opinion of a GfK expert, retailers providing a comprehensive offer via the Internet (from order to transport), as well as networks offering the Click & Collect variant will soon gain much. Combined solutions, where goods ordered in a given store, will be picked up and delivered by third parties on a partnership basis, will also be more popular.
As regards food prices, currently, the prices of fruit and vegetables are rising most strongly and this is the result of poor last year's harvest; also meat processing is on the rise - primarily due to high prices of pork caused by ASF in China; moreover, prices of bread increased significantly – due to an increase in the prices of cereals and flour. It is worth noting, however, that the pace of food price growth is slowing and in May it was 6.5% y/y, while in March it was 8.0% y/y - the economists at Credit Agricole Bank Polska claim.
Source: Central Statistical Office, portalspozywczy.pl