Poland’s Dairy Industry: An In-Depth Analysis

Poland stands out as a prominent figure in the European dairy industry, boasting a well-established market with significant milk production and extensive processing capabilities. Despite recent financial challenges due to reduced global demand, Poland remains a key player in the international dairy market.

Milk Production and Dairy Cattle

The Polish dairy industry hosts approximately 2.1 million dairy cattle annually. These cattle contribute to a substantial milk production volume of around 14 million metric tons per year.

Milk Processing and Dairy Products

Poland's milk processing industry is robust, with a processing volume of about 12.5 million metric tons per year. The country produces approximately 850,000 metric tons of cheese and around 300,000 metric tons of milk powder and whey annually, underscoring its role as a key exporter of these products.

Major Dairy Enterprises

• Mlekovita: One of the largest dairy cooperatives in Poland, renowned for its extensive range of dairy products.
• Polmlek: A major dairy group with comprehensive processing facilities.
• Mlekpol: Another leading cooperative known for its substantial cheese and milk production.

Export and Import of Dairy Products

Poland is an active participant in the global dairy trade, with an annual export value of approximately 2.3 billion euros. On the import side, the country deals with around 700 million euros worth of dairy products each year.

Recent Events in the Dairy Industry

• Investment in Expansion: In September, a €50 million investment was made to expand a Polish dairy factory, highlighting the industry's growth potential.
• Global Demand Challenges: The dairy sector is experiencing financial issues due to diminished global demand, especially from China.
• Raw Milk Prices: Prices for raw milk have decreased to 45.64 euro cents per kg, though prices increased compared to June 2023.
• New Milking Installation Record: A Polish dairy farm is on track to set a record with the largest VMS batch milking installation.
• White Sugar Export: The August settlement period saw Poland's first white sugar export from its ports.
• Government Efforts: In Poland, where butter is considered a strategic commodity, the government has released 1,000 tons of frozen reserves to stabilize prices.

While the Polish dairy industry remains strong, it must navigate existing financial and market challenges to retain its competitive edge in the global market. The sector's growth is evident in the consistent increase in milk production across Eastern European countries, with Poland leading the charge. The average value of dairy exports from Poland and similar European exporters hovers around $1,000 per tonne. However, Poland’s dairy exports to China have significantly declined in recent years, and the outlook remains bleak. Moreover, Poland opposed the EU-Mercosur trade deal, and a modest recovery is anticipated in countries like Poland (+1.9%) in the pig feed sector.

Modified: 2025/02/04

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