The Polish food sector recorded robust growth in 2012, both in terms of production and foreign trade, despite certain segments facing difficulties, statistical data show. Exports of agri-food products surged by 14.8% year on year in EUR terms (up by 17.7% year on year in PLN terms) in 2012, accelerating from the 12.7% year on year rise in 2011. Both exports of animal and crop products recorded year on year advance, but the annual growth was more dynamic in the case of crop products. Agri-food exports accounted for 12.3% of the Polish exports last year, up by 1.2pps compared to 2011.

Cereal crop production reached record level in 2012. Higher yields and changes in cropping patterns contributed to the 6.6% annual rise and 6.8% increase compared to the production in 2006-2010. Corn production in total crop output rose significantly in 2012, as extensive damage to winter cereals, mainly wheat, shifted spring planting to corn.

Sugar beet production slowed down from the double-digit year on year advance in 2011, but maintained on the positive side, propped by favourable weather conditions during the vegetation period of sugar beet, as well as by restructuring and modernization of the sector’s entities. White sugar production also rose in 2012, to nearly 2mn tonnes. Even though domestic sugar consumption stabilised at low level last year, external demand continues to rise. Poland thus ranks as third largest EU sugar producer, after France and Germany, according to Eurostat data.

Milk output continued on upward path in 2012, stimulated by favourable global market circumstances and growing domestic demand, despite the further decline of milk cows population. Rising milk supply last year also drove upwards milk processing, with all milk products except yoghurt recording annual growth of output in 2012. Nonetheless, despite the robust growth in production volume and increase of selling prices, market players’ profitability continues to be negatively affected by rising production costs.

Meat output remained stagnant on annual basis in 2012. Production of pig meat and beef dropped year on year, but rising poultry output managed to alleviate the decline. On the other hand, the canned meat segment managed to post strong growth in 2012. The financial results of the companies in the sector improved last year, as the decline in production on the back of lower pig slaughter was offset by rising imports of pork and processing of poultry meat.