Food to Poland

(Last updated: 16 Jul 2007)

Trends and opportunities

The market

The opening of borders to the European Union (EU) and complete removal of any trade and business barriers will bring more foreign investment into the food industry and a further rise in the industry standards. It will also ensure a continuous influx of foreign tourists from the EU.

Consumers will remain price conscious and continue to demand good value for money, but growing affluence will lead to consumers trading up to better quality food and service, which will ultimately lead to growth at the upper end of the market.

Food processing – especially meat-processing – is an established, mature market in Poland. Pork is traditionally the meat favoured by Poles, and the consumption of beef is at a relatively low level. Lamb consumption is also currently low, but it could increase in the long term with substantial promotional effort.

Some manufacturing industries such as the meat-processing sector are currently experiencing major changes due to the consolidation of the processing industry. This consolidation is taking place through acquisitions by foreign investors and also through the merging of smaller local players. 

Opportunities

Poland currently presents opportunities in areas where Australia has achieved success internationally, and products that are uniquely Australian, such as kangaroo and crocodile meat. There is also demand for Australian exporters to supply items such as beef offal, manufacturing grade beef and veal.

Counter seasonal supplies of fresh fruit and vegetables also present numerous opportunities for Australian suppliers.

Australia has been a supplier of small quantities of manufacturing grade beef and offal (beef tripe) to Poland for around 10 years with tripe constituting the vast majority of Australia's 'meat' exports. Poland may also be promising for selected types of game meats, particularly kangaroo, with consumers having a general acceptance of game and as a substitute for farmed red meats.

Seafood, wine and convenience food are emerging areas in Poland. The demand for quality food products is steadily increasing with a move towards the eating habits of Western Europe. Consumers are also beginning to turn to convenience foods and making purchasing decisions based on value rather than price. 

Competitive environment

Currently the major overseas suppliers are Norway and the South East Asian countries, such as Thailand and Vietnam, offering low and medium-priced products (fresh, chilled, canned and frozen).

Increasing competition in the consumer food service market will help raise standards, and drive small and inefficient independent operators out of the market. The improved quality of service resulting from rising competition will ultimately benefit consumers.

Tariffs, regulations and customs

Australian exporters can face some disadvantages in the supply of certain foodstuffs to Poland as preferential tariff rates apply to European Union (EU) and Central European Free Trade Agreement countries.

Similar reduced tariffs have been granted in some cases to developing countries and other selected countries, based on bilateral agreements. Poland applies a whole range of tariff quotas under the general World Trade Organization agreements.

All EU regulations concerning imports and exports apply for Poland. For some products there are quotas on supplies from specified countries. This includes meat and products of animal origin.

Most local legislation has, or is going through a process of harmonisation with EU Directives, which includes import tariffs and various fields of law, such as consumer protection; environmental protection; taxation; and food safety. In addition, Poland is also a party to many UN and other international agreements, which regulate such issues as child labour.

The Polish veterinary law has been amended to allow imports of a wider variety of meats, such as kangaroo, emu and crocodile.

Industry standards

Standards in the Polish food processing industry improved dramatically in the 1990s. Modern processors now work to international standards. There are also many smaller establishments servicing regional markets that have now upgraded their production standards to be allowed to market their products on the broad EU market.

Food products have to undergo testing by the National Institute of Hygiene (Panstwowy Zaklad Higieny) before they are allowed to be marketed in Poland.

All measurements in Poland are metric. If original product labels are not in Polish, additional labels (stickers) should be attached, including full description of ingredients and expiry date. Dietary instructions and calorific value should also be included.

Marketing your products and services

Market entry

Selling through professional local agents is typically the most recommended market entry strategy. However, direct supplies of certain types of food may be possible via end-users and retailers.

Large hypermarket networks have developed a number of private labels, which open a window of opportunity not only for domestic but also foreign suppliers. It has been registered that the largest foreign investments outlays in the manufacturing sector are those in the production of food products.

A distinctive Australian image may help you promote your products because Poles perceive Australia as a well-developed country with a clean, natural environment offering innovative products of high quality. Australian exporters should investigate the appropriate selling, advertising and promotional techniques for Poland.

Very little trade has been done by Polish businesses over the Internet. Fax and email are still the dominant methods of communication. However, this may change in favour of e-commerce since the local law on acceptance of electronic signatures has been passed and public confidence in the security of e-transactions is growing.

Consumers are finding that online sales of products such as books, CDs, computers, computer software and games are, in many instances, less time consuming. Internet shops also offer a wider selection of goods at more competitive prices.

Distribution channels

Distribution channels vary depending on the type of products, but you will find that major retailers typically rely on buying through local agents who take responsibility for imports, customs clearance and delivery to retail outlets.

There is a group of well-established, professional food traders in Poland. Most of the meat importers have a working understanding of the Australian meat industry and can distinguish between Australian meat establishments and brands.

Currently all imported products of animal origin must be sourced from a European Union approved establishment.

Links and industry contacts

Food–related resources

The Ministry of Agriculture and Rural Development - www.minrol.gov.pl

Government, business and trade resources for Poland

Customs Service of the Republic of Poland - www.guc.gov.pl/eng/index.html
Polish Agency for Foreign Investment and Information - www.paiz.gov.pl
Polish Market Review - www.polishmarket.com.pl

Media

The Warsaw Voice - www.warsawvoice.pl

Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

• Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
• Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
• Administers the Export Market Development Grants scheme.
• Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
• Provides advice to the Australian Government on its trade and investment development activities.
• Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

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