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Poland: Blackcurrant prices fall below production costs

Blackcurrant prices have dropped once again and have now fallen below the production costs. Growers and processors argue about the cause of this decline; processors say the harvest was too large, while growers say that processors make too great a profit. Both sides turned to the Minister of Agriculture, Marek Sawicki, who in turn consulted the Office of Competition and Consumer Protection (OCCP).

For at least a couple of weeks, it has been known that the harvest will be about 20-40% lower due to the effects of frosts. Last year, Polish blackcurrants accounted for 50% of the 200,000 tonnes harvested across the EU. This year, according to the National Association of Blackcurrant Producers (KSPCP), processing plants proposed a rate of 60-70 grosz (cents) per kilo, while last year it was of 1.5 Złoty, and the cost to produce one kilogram of fruit exceeds 2.50 Złoty. The Institute of Agricultural and Food Economics (IAFE) says the cost can be as high as 2 Złoty per kilo with yields of up to 7 tonnes.

KSPCP growers complain that Germany pays up to 2.5 times more for the blackcurrants, and that in Poland processors are trying to earn big money at their expense. The case involved Marek Sawicki, head of the ministry of agriculture. He turned to the Office to examine the information coming from the blackcurrant industry on the application of the processors' agreement restricting competition, which consists of determining a fixed purchasing price.

KUPS explains that the main reason for the low prices is the growing blackcurrant production in Poland and the lack of reliable data on the size of plantations and their yield. Additionally, the increase in production is not linked to a growth in demand for fresh and processed blackcurrant.


Source: portalspozywczy.pl
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