Poland's farm price row turns nationalistic

Polish farmers are reigniting a debate over power in the food chain, as Agriculture Minister Stefan Krajewski accuses international retailers and major agribusinesses of squeezing local producers.

“The food market in Poland is largely managed by large retail chains, most of which are foreign-owned … The result? Prices in shops are up to five or six times higher than those received by farmers,” Krajewski told national media on Tuesday.

The minister has asked the government’s competition authority (UOKiK) to probe suspicions of secret price-fixing by big retailers. “This isn’t a healthy market; it’s a monopoly,” he said.

With Polish farmers being known for their influence as voters’ pool, and following the defeat in this summer election, Donald Tusk’s government is feeling increasing pressure from farmers – many of whom joined a major opposition party demonstration against the EU-Mercosur agreement and immigration earlier this week.

Krajewski is seeking to strike a balance between listening to farmers and keeping expectations in check.

“We operate in a single European market … it’s not like it was before 1989, when there was a centrally planned economy,” he said.

Meanwhile, he is calling on citizens to choose “wisely”. “Every purchase is a decision that supports either a Polish farm or a foreign corporation”.

Warsaw takes aim at agribusiness giants

Beyond retail, the government’s scrutiny has turned to global grain traders, accused of exploiting their position in the market.

This week, UOKiK brought charges against US-owned Bunge and the UK-owned agronomy company Procam for the “unfair use of contractual advantage” over Polish farmers.

The competition authority accused the companies of making farmers pay for damage caused by extreme weather and launched an in-depth investigation.

“Farmers not only failed to achieve their expected income but were also exposed to losses from having to pay contractual penalties,” said Tomasz Chróstny, president of UOKiK.

Bunge is part of the so-called “ABCD” group – Archer Daniels Midland, Bunge, Cargill, and Louis Dreyfus – which together dominate around 70% of the global grain trade.

“Our company in Poland is cooperating with the UOKiK … and has provided all required information and documentation,” Bunge said in a reply to Euractiv, adding that it was “fully committed” to complying with the law. 

UOKiK recently fined the Dutch-based Cefetra Group, another major trader, for similar violations.

This story was updated. 

Aleksandra Krzysztoszek contributed reporting

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