Outlook for the starch market and the production of starch potatoes in Poland in the view of changes in Common Agricultural Policy
Wiesław Dzwonkowski
ierigz@ierigz.waw.plInstytut Ekonomiki Rolnictwa i Gospodarki Żywnościowej — Państwowy Instytut Badawczy w Warszawie (Poland)
Abstract
Starches can be used for food as well as for industrial purposes. The demand for starch products show a systematic increase but the share of potato starch in the market is declining because it is less competitive than cereal starches. So far the production of potato starch within the CAP legal framework was strictly regulated and supported. From the 2012/13 season onwards production quotas are abolished and full decoupling is implemented. That means total liberalisation of the market but the expected outcomes are rather adverse. The prices of raw material would increase and, in consequence, so would the production cost of potato starch. It will be mirrored in further decline of competitiveness and thus reduction of demand and a fall in production of potato starch and starch potatoes in Poland. The reform will speed up the processes of restructuring concentration within the sector. The number of starch producers and the producers of starch potatoes is likely to decline. However, the outcomes of new regulations in coming years are uncertain and create a serious challenge for the sector.
Keywords:
CAP, decoupled payment, potato, starchReferences
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Authors
Wiesław Dzwonkowskiierigz@ierigz.waw.pl
Instytut Ekonomiki Rolnictwa i Gospodarki Żywnościowej — Państwowy Instytut Badawczy w Warszawie Poland
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