2015: threats and opportunities for the Polish fertilizer market

| Polish Market |

The Russian embargo on Polish food, the conflict between Russia and Ukraine, the European Climate Change Adaptation Conference – all those events in 2014 had their impact on the food and fertilizer market in Poland. They have necessitated changes, which Poland and rest of Europe need to face if the inhabitants of the Old Continents are to enjoy food security in the long term.

New challenges on the fertilizers market

European fertilizer manufacturers face a major task of becoming more and more attractive on an increasingly competitive market. The European enterprises, which are dependent on the natural gas supply from Russia, will be finding it more and more difficult to compete with American enterprises, whose production is based on the cheap gas from shale deposits. However, it is not the unfavorable pricing of resources that makes the European companies less competitive.

Climate change challenge

By adopting the Convention on Climate Change, Europe has taken on the responsibility for counteracting the negative impact on the environment on the global scale. An element of the policy on climate change that is crucial for the economy is the gradual reduction of greenhouse gases and introducing environmental norms. Their implementation will be the duty of the entrepreneurs and industrial corporations.

Ecology needs to be beneficial for both sides

Those changes are important and overdue to say the least. However, if the economies of the European countries, including Poland, are to develop well, we cannot focus on this one and only aspect of the cost of climate change policy. The burden ought to be borne by the entrepreneurs, consumers and the state, so that the policy does not have a negative impact on the competitive capacity of the European industrial companies.

Opening up Europe to the West

The debate on the repercussions of the climate change policy is ongoing alongside the discussion about the draft of Transatlantic Trade and Investment Partnership (TTIP). The free trade agreement would be of huge importance for European entrepreneurs, as it would open up the EU market to American products. Those goods are manufactured in a country where the producers are bound by much more lenient norms concerning environmental protection. It is for the politicians to decide how the European companies are to cope with such unfair competition.

Taking care of food security

Fertilizer manufacturers constitute a part of a long chain of entities which are responsible for the production, processing and distribution of food. Taken together, all links of the chain lay the foundations of food security in Poland. The proper functioning of the system determines the condition of the national economy as a whole.