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Development of Organic Food Sector
Our study aimed to explore the factors limiting the development of the organic food sector in Poland from the perspective of processing, distributing, and retailing companies. We used a qualitative approach with in-depth semi-structured interviews with the management board representatives of 17 large- and medium-sized enterprises and the owners of 10 small and medium companies. The potential limiting factors, including legal, economic, technological, and environmental factors, were identified by reviewing the corporate and market reports of processing and retailing companies operating in the Polish organic sector.
2. Macroeconomic Situation
3. Financial Limitations
“We would like euro in Poland.”(C19)
“You have to have extra cash reserves for possible slippage.”(C14)
“We have a reserve. If we did not have our resource fund, it would be difficult; after all, we must put goods in warehouses, put goods in stores.”(C4)
“We used to get credit before, so it gives us additional liquidity.”(C1)
“We give payment terms of 21 days and want money for 21–28 days. However, suppliers are paid within 7 days after the month of delivery, and they have never been late. Large suppliers are paid after half a month.”(C4)
“Payment to suppliers—within 14 days, for payment from customers wait approx. 40 days and they still have to remind each other.”(C14)
“There are delays in payments sometimes affecting financial liquidity.”(C15)
a significant increase in employee salaries and total labor costs,
higher prices of organic raw materials and commercial goods, including those purchased from foreign partners due to unfavorable exchange rate fluctuations,
increased EUR-denominated rents for sales and office space as well as for renovated locations,
domestic transportation costs (in the case of small processors),
higher international transportation costs,
an increase in the cost of external services, and
an increase in the cost of goods losses due to a variety of factors, including those related to changing the assortment toward a greater share of fresh products, which naturally contributes to an increase in warehouse losses (e.g., expired, spoiled goods).
“Raw material a lot and getting more; energy; employees 20–30 people. Modernization and one shift; we don’t work on Sundays and holidays, permanent employees, operating costs are increasing.”(C1)
“Biggest costs—transport (small batches), diesel prices.”(C2)
“Highest costs of employees (higher minimum wage, increase in employee costs, social security).”(C3)
“60–65% as we have the cost analysis is, however, the raw material, then their wages 20%, or their energy 10%, or their fuel.”(C4)
“The highest is raw material cost.”(C5)
“The most important are costs of raw material and transport.”(C6)
“Yes, we are seeing an increase in costs. Logistics affects the cost increase the most.”(C19)
“Credit’s too expensive, especially compared to other countries.”
This entry is adapted from 10.3390/agriculture11090882
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