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Poland: Fruit and veg processing sector still fragmented

Small and medium-sized companies (SMEs) control approximately 40 percent of Poland's fruit and vegetable processing, according to a report by Inquiry; this market share is worth approximately 5 billion złoty (1.2 million Euro).

Polish SMEs devoted to fruit and vegetable processing are doing better and better, but faced with many challenges, which soon may become crucial for their development prospects and their very existence, according to the press release quoted by Inquiry.

The report shows that in Poland there are two major types of small and medium-sized manufacturers operating in the processing of fruit and vegetables. The former place particular emphasis on development and adopt long-term management strategies; they regularly track the market changes taking place and skilfully adapt to them. Companies of this type are not afraid of competition from major corporations.

The second group consists mostly of businesses which have been thriving since the 90s, and whose activities are based primarily on traditional products, brought to the local wholesalers and brokers.

As emphasised by the authors of the report, the fruit and vegetable processing industry is sensitive to changes, for example, to fluctuations in the internal and foreign markets affecting the price of the products sold. Another difficulty which many must overcome is the use of obsolete machinery and the lack of investments, also in marketing campaigns.

Despite the risks and difficulties, small and medium-sized companies are able to remain competitive thanks to a long tradition in production. Additionally, according to the report, the dynamic development of the food market has also created new areas for development, with an example of this being the considerable growth of the ready meals category.


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