During the 21st International Dairy Cooperative Forum in Białystok, a debate was held with the participation of representatives of agricultural and processing organizations. The future of the Polish dairy sector was discussed, the most important opportunities and threats were presented, and the best ways to prepare for the upcoming changes were discussed.
The most important element of the dairy industry is the farmers
Agnieszka Maliszewska, the organizer of the Forum and director of the Polish Milk Chamber, emphasized the important role of discussions involving representatives of all stages of the supply chain. She also noted that the most important element in the functioning of the dairy industry are farmers, whose loss the sector cannot afford.
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Marian Sikora, chairman of the Federation of Branch Associations of Agricultural Producers, when asked about the risk of losing Polish farmers in the future, pointed out that the answer to this question would depend on the decisions made by the European Commission.
– Fallow land, limiting production and similar things are definitely related to Mercosur, because if we want to bring production from third countries to the European market, we first have to stop our own production – he said.
Dominated by non-agricultural organizations
Sikora also stressed that discussions on agriculture in the EU are dominated by non-farming and environmental organisations.
"There are definitely fewer of them than farmers, but they are put on a pedestal. And it is still like that. Agriculture, as long as we have food, is ignored. We have to fight for our production, we have to raise the next generation. The most important thing is that we are together," he said.
Polish young farmers constitute almost 25 percent of all young farmers in the EU
In turn, Dorota Grabarczyk, a milk market analyst at the Polish Federation of Cattle Breeders and Milk Producers, pointed out that, compared to the EU, Poland's situation in terms of successors in agriculture does not look bad.
– In Poland, young farmers constitute almost 15% of all farmers. In turn, farmers over 65 years of age constitute about 20%. In the EU, the situation is much worse, because farmers over 55 years of age constitute 57% of all farmers, while young farmers constitute less than 12% – said Grabarczyk. – Polish young farmers constitute almost 25% of all young farmers in the EU – she added.
How to keep young people in agriculture?
The expert also outlined the most important issues discouraging young farmers from staying on their farms and outlined actions that could change the situation.
– The problem is that the EC is introducing new regulations without conducting an impact assessment. Young farmers want to invest, they want to develop, but if they do not know what the future holds for them, it is obvious that they will abandon this heavy production. In addition, there are issues of availability and price of land, which make it difficult to develop production. Moreover, banks treat young farmers as risky investments due to their lack of credit history, which is another obstacle – Grabarczyk listed.
According to Grabarczyk, improving the mechanisms for forecasting crisis situations would also be helpful.
– We should take action to make the mechanisms for forecasting crisis situations better developed and more effective. The EC has the Milk Market Observatory, but it focuses more on the current situation and does not show these long-term prospects – she explained.
It is necessary to strengthen cooperatives
Arkadiusz Pisarek, president of the National Union of Dairy Cooperatives, stated that in order to retain young people in agriculture, it is necessary to strengthen cooperatives, because it is thanks to cooperatives that farmers can increase production and exports develop.
– In addition, a young farmer must have a vision of profitability. He cannot be surprised by the EC with sudden changes in regulations or changes in positions, because this will discourage him from taking on this hard work – he said.
Small and medium-sized farms cannot afford to balance production
Another challenge for the dairy industry is the growing emphasis on production sustainability, which may soon become a required element in the agri-food market. Marcin Hydzik, president of the Association of Polish Milk Processors, when asked about the readiness of the Polish dairy sector to be a sustainable producer and processor, emphasized that the Polish dairy sector is very diverse.
"In my opinion, there is no such thing as a milk processing sector, in the sense of a united front. There are three dominant entities that are market leaders, there is a middle group, and small local cooperatives that are trying to survive in the market and find their niche, and who have no idea about all the obligations that the Green Deal imposes on us," Hydzik said.
– Commissioner Wojciechowski always emphasises that it is good that Polish dairy is based on small and medium-sized farms that care about the balance of production. On the other hand, I believe that the balance requires very large financial resources and small farms, and increasingly medium-sized ones, will not be able to afford it – he said.
The future lies in agricultural consolidation
The President of ZPPM stressed that consolidation is a natural economic process that promotes the emergence of strong entities that are able to adapt their production to growing requirements and be partners for processors, thanks to which they can cooperate with retail chains.
"I believe that the future lies in the consolidation of agriculture. Nothing bad will happen if these small farms go out of business, because new ones will be created, which will be partners for processors," he added.
Janusz Wojciechowski, EU Commissioner for Agriculture, has a slightly different view of this issue.
– We need various farms, including small ones, because otherwise there will be no food security. Consolidation will continue, but let's also give these small farms a chance to survive. Let's remember that agriculture not only has a production function, but also a social one – Wojciechowski noted.
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An appropriate budget and crisis reserve are crucial
Wojciechowski also stressed that an appropriate budget and crisis reserve, which are currently insufficient, are crucial.
– We need to have a solid, several billion crisis budget, so that in the event of a market collapse or a natural disaster, a hand of help from European funds is quickly extended. Let's not count on insurance, agricultural activity is associated with too much risk for any insurance system to cover it. We need such a system so that farmers can feel safe – said Wojciechowski.
We need legislative support and protection for the industry
According to Magdalena Szabłowska, Director of Foreign Trade at Mlekovita, the dairy industry needs a clear vision and development strategy that will allow young farmers to link their future with this sector.
– Only when we are certain that this sector has a future, is legally secured and is key to the economy, young farmers will be willing to invest in new technologies, products and sustainable development – said Szabłowska. – We must ensure that our interests are also secured in the EU, that the vision of the development of the Polish dairy sector is included in the vision of the development of the dairy sector in the EU. (…) I believe that there is a lot to do in this area. First of all, we need legislative support and protection for the industry – she added.
Can Poland be a leader in the European dairy sector?
Professor Andrzej Babuchowski, president of the Institute of Dairy Industry Innovation, when asked whether Poland could be the leader of the European dairy sector, pointed out that the limits of dairy development have never been estimated.
– Even the latest EU report on the milk market has never been subjected to scientific evaluation, and in my experience, the dominant voice is held mainly by non-agricultural organizations from the area of environmental protection and animal protection. Most countries, when submitting their positions, are not guided by scientific truth, but by social interest, which is why we need to have strong organizations with a strong analytical background – emphasized Professor Babuchowski
Agnieszka Maliszewska, summing up the debate, emphasized that if farmers and processors cooperate, they have a chance to create something new and good.
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Maliszewska: Polish dairy industry urgently needs a development strategy for the sector
