Temat: High sugar prices expected to affect Polish confectionery...

In October 2009 the EU will stop subsidising the export of confectionery produced from sugar manufactured in the EU member states, according to Gazeta Prawna. The sugar produced in the EU is twice as expensive as that on the world markets. As a result, confectionery goods from Poland will become less attractive in terms of price on the foreign markets.
At present confectionery production is one of the most significant areas of food industry exports in Poland. Around 30% of Polish sweets are sold abroad, generating annual revenues of PLN 2.3bn (€552m). The overall Polish sweets market is worth PLN 7bn (€1.7bn). There are around 140 producers, of which approximately 100 are small or medium-sized companies. Smaller manufactures may find it difficult to survive on the very competitive foreign markets. After entering the EU, many producers invested in new modern production lines. The abolition of the grants will make exports less profitable, and many producers may, therefore, limit or withdraw from foreign sales. As a result they will not be able to repay loans taken out for modernisation and may go bankrupt, according to Marek Przezdziak, of Polbisco (the Association of Polish Chocolate and Confectionery Manufacturers), quoted in the newspaper.

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