Oligopol cukrowniczy w Polsce – determinanty przemian i funkcjonowanie
Sugar Oligopoly in Poland: Factors of Transition and Functioning

Summary/Abstract: Since sugar is the basic sweetener in food production and households, the sugarindustry is considered a strategic one within the Polish agri-food sector. The sugar industryis a classic example of oligopoly, with four holdings producing a homogeneous product,which is chemically pure sucrose. Oligopoly is a form of imperfect market competition,with a theoretical background extensively described in literature. Structural and ownershiptransformation of the sugar industry began in 1994 on the basis of statutory regulations.Foreign direct investments of transnational holdings have substantially influencedthe structure of the industry, as their market share reached approx. 60%. The marketregulation system in the EU determined the conditions of competition and the economicstrategy of sugar companies. The production capacity of the industry significantly exceedsthe demand of the domestic market and therefore exports account for a large shareof domestic output (ca. 30% of revenue on sales). In consequence the domestic marketis strongly linked with the EU and world markets. Since the sugar industry is able to generatefinancial surpluses and promising economic indicators on a regular basis the transformationof the sugar industry can be considered successfully concluded. Over the period of 2009–2022, net profit varied between PLN 0.2 and 1.7 billion, with variability reflecting changesin the world market fundamentals and to a much lesser extent internal market conditions,namely changes in production level and stable demand.

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