Sugar has recently become one of the most “cool” products in Polish stores
So much so that there was a problem with the availability in some stores, and chains began to ration its sales
As availability declines, prices rise. The analysis of Hiper-Com Poland and UCE RESEARCH performed for Business Insider Polska shows that in the first half of 2022 prices increased on average by nearly 40 percent, and in June alone – by less than 45 percent.
Sugar is the fastest in border provinces. Both in the west and north-east of Poland. Here’s a map of the sugar rush
In Poland, it has been going on in recent weeks real sugar hunt. Customers show photos from stores and thus further boost sales and increase the difficulty of buying it.
The problem has become so serious that more and more networks are putting limits on the purchase of this product. We are talking about such stores as Biedronka, Lidl, Aldi or Netto. Including these networks decided to introduce product sales limits.
As their representatives explain, the shortages are the result of several factors: problems with transport, customer behavior, but also buying sugar by confectioners.
Jacek Sasin, on the other hand, drew attentionthat the shortages in stores are due to … foreign chains and German companies. – We are talking about shortages in large retail chains, which are controlled by foreign capital. We know that large foreign entities are eager to source from foreign producers, they have their suppliers – Sasin said in a statement sent on Thursday to PAP.
As he added, in the case of sugar, “in Poland these are companies that bought Polish sugar factories in the 1990s”. – These are two large German companies operating on the Polish market that control 60 percent. Polish market He pointed.
This is the sugar high island
As availability declines, so does the price of sugar. This year, the price of this product has already increased by several dozen percent. We checked where the increases are most severe and where we currently have a “sugar island” in our country.
From a study by Hiper-Com Poland and UCE RESEARCH for Business Insider Polska shows that prices in the first half of the year increased on average by more than 37 percent, and if only June was taken into account, it is already more than 44 percent more expensive.
Even in April 2021, the average price of a kilogram of sugar (taking into account both regular and promotional prices in stores) did not exceed PLN 2.50. Today it is approaching PLN 4.
However, sugar is not so expensive everywhere. The worst situation in this respect is in several regions. 42.3 percent prices increased in the Lubuskie voivodship. It is interesting that prices in neighboring regions do not rise so quickly. Lubuskie is therefore the sugar island of highlands and the only place in the west of the country where the growth rate exceeds 40%.
Similar increases are also seen by the inhabitants of the following voivodeships: Podlaskie, Warmińsko-Mazurskie, Świętokrzyskie, Małopolskie and Łódzkie.
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This is what the “sugar road map” in Poland looks like.
The best in this respect is in the west of the country. In Wielkopolska, Lower Silesia and Western Pomerania, the growth rate does not exceed 35%.
When analyzing the above state, it is worth remembering that the study covers prices by the end of June this year. So they can differ significantly from the current state, due to the lack of sugar in stores, as well as its artificial increases, which are currently observed on the market.
Prices will continue to rise
– Is only sugar currently subject to mass buyout in stores? In my opinion, there is currently no such phenomenon on the market, except for the sugar mentioned above, where I believe that consumers are largely to blame, who are driving this type of situation themselves. In addition, Poles began to prepare preserves for the winter, which also contributes to the above process – says Dr. Krzysztof Łuczak, chief economist of the BLIX Group.
– Of course, sugar has increased a bit more than usual recently, like many other products, but that’s not a reason to buy it massively. – he adds.
What’s next? Julita A. Pryzmont from Hiper-Com Poland believes that sugar prices will not stop for now.
– There are several factors. First of all, the war in Ukraine and the sanctions imposed on Russia and Belarus should be mentioned. Thus fertilizer prices are rising, which in a fundamental way translates into an increase in the cost of cultivation. In addition, there is an internal factor, i.e. the situation on our agricultural market. Growers’ expectations are growing, as they feel the large increase in beet production costs. In addition, there is a decrease in the attractiveness of the production of the beet itself compared to other alternative crops – he says.
As he adds, “the increase in the prices of energy resources is also significant, as well as the general increase in agricultural activity itself”. – This, combined with the above factors, may lead to to further increase in sugar prices in stores – concludes Pryzmont.
