Agricultural market - new role of distribution

Agricultural market in Poland changed significantly after Poland’s accession to the European Union. New entities emerged in the value chain of agricultural production, profitability of all links of the chain grew and the model of servicing agricultural producers underwent a major change. Entities such as Gmina Cooperatives “Samopomoc Chłopska” or Spółdzielnie Kółek Rolniczych (Farmers’ Cooperative Associations) that were vital for distribution of means for agricultural production until 1989 – today are almost insignificant. Their role was taken over by private companies that very often started their activity on the grounds of property of bankrupt rural cooperatives. Changes on the market of means for agricultural production in Poland proceeded differently to those in other countries of the Central and Eastern Europe. The main reason for this was different structure of farms – the key customers of the market, their legal, economic and social status. In the Czech Republic, Slovakia or Bulgaria there was much fewer very small private agricultural entrepreneurs. Whereas the distribution channels in Western Europe were formed by several decades of free market economy. The model of distribution in Poland continues to evolve adjusting its offer to the dynamics of changes of their customers. Participants of agricultural market seek new possibilities to create and capture value, i.e. the highest margins in the chain of companies participating in manufacturing and supplying products to the final customer. The strongest ones try vertical and horizontal integration as well as different forms of partnership to shorten the distribution channels and take over as much value added as possible in the entire chain.