Poland’s compound feed and poultry industries have continued their strong growth despite underlying challenges in the wider European market.
Investment in broiler production in Poland has been significant in recent years and farmers have kept on producing at higher rates even during periods of declining sales prices.
Poland is the largest poultry producer in the EU, producing 2.1 million tonnes in 2014, or about 14% of the EU total. Consumption of poultry meat in Poland is also high at 26.7 kg per person against the EU average of 22.5 kg.
As the chart above demonstrates, poultry production increased substantially in the past five years, growing from 125 million in 2012 to just under 150 million in 2016.
Compound Feed Production
The growth in bird numbers was one of the main drivers behind an increase in the country’s compound feed output.
Poland’s compound feed production increased from under 5 million tonnes in 2002 to nearly 10 million tonnes in 2016. Poultry feed production increased from 3.3 million tonnes to nearly 6.0 million tonnes in the same period.
Feed Mill Consolidation
A recent report by Alltech suggests that there are 130 feed mills in Poland with the largest product group being broiler feed, followed by swine feed and then layers, dairy and beef.
In recent years, especially since Poland’s accession to the EU, many feed mills have been acquired by western companies. In addition, domestic firms expanded their operations and merged or acquired other businesses, leading to some consolidation.
However, small holdings and smaller private operations are still going strong in the country where agriculture is a major contributor to the GDP.
According to a report by the Puławy Competence Center, “agriculture is currently the fourth largest sector of economy in Poland. Its contribution to the country’s GDP is much higher than the EU average and it also provides employment for nearly 20% of the economically active population”.
In an interview with Feedinfo News Services earlier this year, Ekoplon CEO Stefan Sajkiewicz said that historically there is robust production by smaller swine and poultry producers in Poland that compete with large modern facilities.
“However, we have noticed some remarkable integration progress between the broiler producers and the animal feed processing plants. This is a period of development in a new market culture, which is why manufacturers of animal feed must closely monitor these changes and adapt to them,” Sajkiewicz said.
Cargill-owned LNB is understood to be the largest premix producer in the country. Further premix producers include Vilofoss, DSM, Mixscience, Provit, DeHeus and Ekoplon, among others.
Based on the country’s compound feed production at nearly 10 million tonnes/year, Poland’s annual demand for premixes is estimated at around 100,000-110,000 tonnes.
The below table provides a selection of Polish compound feed and premix producers in alphabetical order.
Poland’s Veterinary Service declared Poland as free of highly pathogenic avian influenza (HPAI) on 21 July 2017, following three months with no HPAI detections. The discovery of the HPAI virus led to bans of Polish poultry in many export markets and a 2% decline in poultry exports during the first four months of 2017. Polish exporters now hope to resume shipments to Armenia, China, Russia, Japan, South Korea, South Africa, Thailand, and Taiwan, countries which have banned imports.
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