The production of malt in Poland did not meet the demand of breweries

The production of malt in Poland did not meet the needs of breweries operating in our country. Poland has the potential to increase the scale and diversity of malt production, but this requires strengthening the cooperation of malt and breweries with growers – these are the conclusions of the UOKiK from the report on the malt market.

The Office of Competition and Consumer Protection has examined the characteristics, relations and level of competition on the Polish malt market for beer production. The analysis basically concerned 2019-2022. The study covered 16 selected breweries, including the largest beer producers operating in the country; producers, processors and intermediaries in the Hops and Słodnia trade, i.e. the main suppliers of raw materials for beer production.

The report published on the UOKiK website shows that the main problem of the malt market is the lack of the right amount and quality of cereals needed for its production.

Poland is one of the main producers of beer in the European Union, more than every tenth bottle of EU beer is created in our country. We take third place in this respect – behind Germany and Spain.

As indicated by the office, the malt and beer market in Poland is made up of processors, including breweries, brokers and relatively weakest, though the most numerous, cereal producers. In the opinion of brewery representatives, the raw materials market for beer production is a competitive market, especially in the case of malt. According to the representatives of malty rooms supplying the studied breweries, “the Polish malt market is a raw materials market”, and the price pressure from Czech or Slovak Słodownia inclined domestic processors to develop malt exports.

“Although representatives of malt and breweries claim that in Poland we are dealing with the” market for sellers of raw materials “, our observations emerge a slightly different picture. In the contracts of some manufacturers with suppliers of non -crisp grain there were entries that prompted us to analyze them in terms of the occurrence of violations. – commented the president of UOKiK Tomasz Chróstny.

Cereals are the basic raw material for the beer industry. It is from them that malt or malt extracts are formed, from which beer is brewed. Brewery barley is a key grain in the production of beer. Meanwhile, the number of agricultural farms with tall barley sowing has decreased: from 492 thousand. In 2005, to almost 190 thousand In 2020, the total barley area has also been in a downward trend for years (in 2000-2024 it decreased by 37 %). That is why domestic malt and obtained grain not only from Polish agricultural producers, but also from domestic and foreign intermediaries or processors – the UOKiK analysis showed.

According to the office in 2022 for about 99 percent domestic malt production corresponded to 4 malt with foreign capital. Nearly half of the malts were imported from abroad, of which 98 percent They brought the breweries directly.

UOKiK stated that during the surveyed period, domestic malt production was insufficient to satisfy the demand of beer producers. At the same time, the possibilities of increasing malt production in Poland are limited by the availability of cereals in the right amount and quality – mainly brewing barley. This is largely due to natural factors, such as climatic conditions and soil quality, but also access to knowledge, technology and organizational competences or cooperation within the industry – the office pointed out.

“Poland has the potential to increase the scale and diversity of malt production. However, this requires strengthening of the cooperation of malt and breweries with domestic growers, support for barley cultivation, including in the field of quality know-how. Farmers should break barriers and cooperate with industry organizations or as part of producer groups to exchange experiences, search for alternative solutions in the organization of the farm and the production process, common orders, joint orders for services, joint orders, joint orders, joint orders, joint orders, joint orders, joint orders, joint orders, joint orders, joint orders, joint orders, joint orders, joint orders. differentiation of channels and directions of crop sales or to strengthen the negotiating position, “says Chróstny.

The Office also drew attention to contracts concluded between entities that should be correctly edited, specifying mutual rights and obligations, and taking into account the applicable legal status and judicial case law. Irregularities in the content of contracts concluded with relatively smaller and weaker suppliers may be questioned on the basis of the Act on counteracting unfair use of contract predominance in the market of agricultural and food products and can be enforced by UOKiK. (PAP)

AWY/ MMU/