Restructuring Polish sugar industry

Abstract

During the transformations of economic system, basic changes in various factors and conditions had a strong effect on the functioning of industrial enterprises, including the sugar industry. The transition from the centrally commanded economy to market economy considerably influenced the Polish sugar industry, with a very negative effect. In 1993 the whole branch showed negative net profitability index. Prospects for the Polish sugar industry appeared together with foreign investors (on from the UK and three from Germany), who took over nearly 65% of all sugar plants. Restructurisation activities raised the competitiveness of particular enterprises. Year 2002 brought the formation of a large stateowned manufacturer.The most characteristic feature of the Polish sugar industry is production potential surplus and a considerable dispersal of production. These factors largely contributed to the initiation of a production concentration process in 2001, which aimed at liquidating the unprofitable plants. The apogee of this process came in 2004, when 14 sugar plants were closed. In the current sugar campaign (2006/2007) 36 plants take part, out of 76 that existed in 2000. 40 were closed, which is 52.6% of all that existed. It must be pointed out that further reduction of the number of existing plants is possible, since the current level of sugar production is attainable with 20-25 functioning plants.