A Regoverning Markets Agrifood Sector Study 

By Jerzy Wilkin, Dominika Milczarek, Agata Malak-Rawlikowska and Jan Fałkowski

This is a study sites of the rapid and considerable restructuring of the dairy-supply chain in Podlaskie and Warminsko-Mazurskie regions of Poland, to provide valuable insights for other regions that are behind in the restructuring process, and lead to useful policy recommendations.

EU accession and the integration process, including CAP implementation have, been the main driving forces behind dairy sector restructuring in Poland during the last decade. But  the restructuring of the wholesale and retail segments has influenced the situation of dairy processors and, indirectly, the situation of milk producers. In general, the concentration process in both segments has resulted in an increased demand for large deliveries from dairy-processing companies.

The relative size of all actors plays an important role. All respondents said that the size of processors, wholesalers, and retailers is important. Large retail chains and wholesalers search for large deliveries to lower transport and marketing costs in the face of strong competition. Large dairy processors may achieve better quality after investing in improvement and they can negotiate higher prices with retailers. Size also matters for farmers, because they are offered higher prices for large deliveries.

Policy implications are discussed.

The full study is available for download here [0]

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