Opportunities taken and opportunities missed. 10th anniversary of Polish investments in the agri-food industry. Report from the debate

The debate was moderated by Szymon Krawiec, managing editor of “Wprost”, who asked questions and moderated the discussion between experts from the agri-food industry. The panelists included: Marta Tworek, Management Board Representative for ESG at Animex Foods; Katarzyna Kala-Kowalska, President of the Management Board of DS Smith Polska; Adam Grabowski, Polmlek Group; Lucjan Zwolak, Deputy Director General of the National Support Center for Agriculture; Andrzej Gantner, Vice-President of the Management Board of the Polish Federation of Food Producers; and Wiesław Żebrowski from the National Association of Dairy Cooperatives, Audit Association.

Investment directions in the agri-food industry

Debate participants emphasized that the main goal of investments in the food industry is the modernization of production technologies and process automation, which is important both in the context of increasing efficiency and reducing demographic problems. Investments are also made in product innovations, research and development, as well as in the development of exports.

What is the agricultural industry mainly investing in today?

Over the last decade, Polish food companies have made significant investments both at home and abroad. They concerned the expansion of production capacity, modernization of technological lines and the implementation of ecological solutions and digitization of processes.

– The industry is going in two directions. The company must bring the highest possible profits, but sustainable development is equally important, e.g. reducing energy consumption or improving the quality of work. In the industry, it is increasingly important not only to increase production, but also to produce smarter and more responsible production. Recent investments in Animex Foods include: reducing the carbon footprint or converting waste into renewable energy – says Marta Tworek, Sustainable Development Coordinator.

– DS Smith Polska is the largest concern producing and selling cardboard packaging. Our investments included mainly two factories. The first one was built in 2005, the second one in 2022. We have been investing in our machinery throughout the years. We started with gray cardboard boxes, went through all stages of packaging production, each stage required new machines and new technologies. We also invest in environmental protection, for example by investing in the responsible use of energy – Katarzyna Kala-Kowalska, president of the management board of DS Smith.

Adam Grabowski from the Polmlek Group talks about the company’s innovative project, focused on lactoferrin – “pink gold”. It emphasizes the importance of modern technologies in the separation of proteins and fats and announces further investments that will strengthen the company’s position in the future.

“- Today we are focusing especially on lactoferrin, a milk protein that is called pink gold. This is our newest child, an innovative project, we are still researching, but we are doomed to success. We are going strongly into high-tech, which is reflected, among others, in the separation of proteins and fats, this is the future. We have a lot of investments ahead of us” – says Adam Grabowski, Polmlek Group.

Objectives of investment in the agricultural industry

As the panelists noted, the main motivations for investing are: increasing production capacity, investing in technology, optimizing costs, especially energy costs, and increasing competitiveness on the international market.

In turn, the biggest problems of the agri-food industry include: the lack of long-term strategies and excessive legislation at the European Union level, but primarily manifested in the overzealousness of Polish officials.

Wiesław Żebrowski from KZSM emphasizes the key role of logistics in the dairy industry – durability of products, speed of delivery and dispersed resources. It also draws attention to the need to invest in qualified staff, including: through cooperation between plants and universities.

– Logistics is of great importance in our industry. Today, what matters is the durability of the product and the speed of delivery. Scattered facilities so we can quickly get the product to the customer who needs it. We need to invest in specialists and resources. All plants, not only dairy plants, will have to train staff, for example through cooperation with universities – says Wiesław Żebrowski, deputy president of the management board of KZSM.

Marta Tworek emphasizes that her company focuses on investments in artificial intelligence and production automation, which allows to increase energy efficiency and optimize energy consumption.

– Investing in artificial intelligence and using it in all processes. We want to go into production automation. Ensuring electrical efficiency. The use of AI allows us to reduce the energy we use – emphasizes Marta Tworek.

The agricultural industry’s expectations towards the government

During the debate, Andrzej Gantner from the Polish Federation of Food Producers emphasized the development of the food processing sector over the last 30 years, at the same time drawing attention to the lack of industry representation in ministerial structures and the need for greater support for the Polish food economy.

– Three decades have shown that we have not only survived but also developed. Today I ask where is the Ministry of Food Economy? The sector is based on processing, you are the one who invests the most funds to develop the Polish economy. Despite this, we are a ghost sector, we are not represented in any ministry – points out Andrzej Gantner Polish Federation of Food Producers and Employers’ Association.

Experts pointed to bureaucracy, high capital costs and variable legal regulations as the biggest barriers to investment development. The need to simplify the regulations was also emphasized.

– I don’t see any positives in the regulations over the last 10 years. New regulations and changes, supposedly for the better, ultimately turn out to be for the worse. I see from every side that we are being attacked by new regulations. There are too many barriers to talk about. I would focus on helping us sell and promote Polish food. Help in reaching every country in the world. It’s simple: we are afraid to send products abroad, but we are afraid of insurance because we hear that importing companies go bankrupt more and more often. – says Wiesław Żebrowski.

On the other hand, Lucjan Zwolak from KOWR emphasized the dynamic development of Polish agriculture after joining the EU – exports increased almost tenfold, and the surplus of exports over imports reached EUR 18 billion, which proves the strength and competitiveness of the Polish agri-food sector.

– The strength of our agriculture is demonstrated by exports. In 2004, when we entered the EU, there was concern that we would become a sales market for the countries of the old EU. Over 20 years, exports have increased almost 10 times. Today, the surplus of exports over import amounts to EUR 18 billion – says Lucjan Zwolak, deputy director general of KOWR.

The industry is counting on further deregulation and simplification of investment procedures, which would allow it to implement ambitious development plans more quickly.

The panelists debated whether Poland still remains attractive to investors. Decreasing advantages in the form of low labor and energy costs force the need to focus on innovation and production quality in order to maintain competitiveness abroad.

Katarzyna Kala-Kowalska emphasizes that the most important achievement of the new government is the recognition of the food industry as a key element of state security. – Despite everything the new government has not done, the most important thing it has done is to call the food industry an element of national security a – emphasizes.

Szymon Krawiec from “Wprost” expresses hope that in 10 years the topics discussed in the debate will be so developed that only the first part of its title will remain, symbolizing progress and changes in the industry. – I hope that when we meet in 10 years, only the first part of the title of our debate will remain – he sums up.