Africa as an opportunity for the Polish agricultural industry. This is the kind of business we do
Several agreements and letters of intent between Polish and African agricultural enterprises were signed on Saturday at the Agrotech fair in Kielce. The agreements concern the export of grain, specialized machinery and cultivation technology.
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Polish companies do business with Africa
The meetings were attended by Polish producers of agricultural machinery and companies from the agri-food sector, as well as importers and distributors from African countries, including: from Ghana, Nigeria and Rwanda.
Marcin Obałek from the Polish-African Chamber of Industry and Commerce informed that agreements include, among others: supplies of agricultural machinery, cultivation technologies and solutions supporting plant protection and agricultural production.
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Company representatives Jakpol signed letters of intent regarding the supply of Polish flour, wheat and other cereals. The partner in Africa is to be the BrazAfric group, operating in Kenya, Uganda, Rwanda and Tanzania. Business Polfluidoperating in the chemical and technology sector, will provide operating fluids necessary for the African machinery fleet. In turn, the company Agrarius formalized cooperation in the supply of biostimulants and biofertilizers. Polish preparations have already been successfully tested in Ethiopia and Zimbabwe, showing an increase in yields by 20-30%.
Poland can increase its chances. Important projects
Marcin Obałek pointed out that the agreements allow for the development of relationships and business cooperation between partners from Poland and African countries. Whereas access to the African market would be facilitated by taking up shares in key logistics points, including: seaport in Mombasa (Kenya). Their own quay would allow Polish exporters to directly supervise, among others: over the unloading and storage of grain and avoiding intermediaries.
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The PAIPH representative emphasized that a public-private partnership is needed to finalize the project. It is necessary to engage private capital and political support in order to overcome administrative barriers and blockades from foreign competition, which is not favored by the appearance of Polish grain on the local market.. Data presented by Marcin Obałek shows that in recent months in Ethiopia, a ton of wheat should have ranged from $750 to $850. At the same time, the price per ton of grain in Poland was below $250.
What about farming in Africa?
Polish entrepreneurs not only provide equipment and products to African partners, but also operate in Africa. Farmer Mariusz Baścik has owned a farm in Zambia for over two years. He grows corn, wheat and soybeans on an area of 550 hectares. The entrepreneur told PAP that the profitability of production in Africa is several times higher than in Poland. Zambia's climate allows crops to be harvested twice a year.
— In terms of land cultivation, it cannot be acquired. However, there are three options for obtaining it: from the government for use up to 99 years, from the tribal chief and from private owners. We are constantly developing; We employ 70 employees permanently, and up to 400 on a casual basis during peak demand, he added.
He mentioned corruption and the need for intensive protection of plants against insects as the main challenges.
