PROFITABILITY OF PEACH AND APRICOT PRODUCTION IN POLAND

Abstract

The aim of this study, based on 28 interviews with growers, was to learn about cost of production and profitability of peaches and apricots grown in Mazowieckie and Lubelskie Voivodships (Poland). The production of these species in Poland is associated with high weather risk. In the analyzed period of 2016-2018 production of these fruit was profitable in 2016 and 2018, and unprofitable in 2017 due to late spring frost. The area of cultivation and crops of these fruit decreased significantly after Poland’s accession to the EU due to competition of fruit from southern Europe. According to the vast majority of peach and apricot producers, the profitability decreased during this time. The production costs are as high as 18.7 thousand PLN per hectare for peaches and 17.4 thousand PLN per hectare for apricots. What is more crucial for the producer, about 55% of annual costs are current cash expenses; for raw materials, wages of hired employees and ongoing machinery costs (fuel). Therefore, possible losses, when sales revenues do not cover these costs, discourage producers from continuing growing. This way cultivation is shifting to smaller farms, which supply local markets and have the possibility to sell at retail markets.