Biznes Fakty
„Inflated” price and market on the verge of disaster
The cost of producing one kilogram of sugar is 2.52 złoty, yet it can be found on store shelves for as low as 1.49 złoty. This pricing is considerably lower than the costs incurred during production and distribution. If this trend continues, the market may face collapse, potentially leading to protests from farmers, as reported by „Gazeta Wyborcza” in its Monday edition.
The standard price for a kilogram of sugar at the most affordable chain is noted to be PLN 2.99, although just recently it was priced at PLN 7 per kilogram. „However, you aren’t required to pay the PLN 2.99 price – many supermarkets are currently offering various discounts. For instance, at one store, if you purchase 5 kilograms of sugar, you can receive another 5 kilograms for free, resulting in a price of PLN 1.49 per kilogram,” the article mentioned.
Selling sugar below production costs
„Gazeta Wyborcza” highlighted that sugar factories are currently facing a dire situation as they are compelled to sell sugar from last year’s beets at prices lower than production costs in order to make room for this year’s production.
The newspaper also pointed out that sugar factories establish purchase agreements with beet farmers, stipulating the minimum price a year in advance of the processing season—indicating that the sugar available in stores now comes from beets bought in the autumn of 2024, with prices determined back in September 2023. „This was exactly a month prior to the parliamentary elections,” comments „GW.”
„Inflated” price
„According to experts, this price was artificially inflated—not only were purchasing prices elevated due to the pandemic and supply chain disruptions, but political pressures also contributed to the increase to secure farmers’ votes. Farmers were offered a minimum price exceeding €50 per ton of beet, with some prices reaching as low as €57,” the text elaborated.
A year later, this was lowered to 40 euros, and the proposed purchase price for this year is set at 30 euros, even as it became evident that the sugar market was destabilized.
„The situation is critical; the profitability of sugar beet has diminished,” states Rafał Strachota, director of the National Association of Sugar Beet Growers. Gazeta Wyborcza mentions that sugar refineries are also incurring losses due to the prevailing circumstances.
