Polish market No.4 / 223/2014 by Polish Market

Polish Market :: 4 (223) /2015

PU B LISHED SIncE 199 6 No. 4 (223) /2015 :: www.polishmarket.com.pl

INNOVATION eNergy AgrIculTure

cluster

cop

Klaster Przemysłowy dawnych terenów

Centralnego Okręgu Przemysłowego im. Premiera Eugeniusza Kwiatkowskiego

KONGRES NAUKOWO-GOSPODARCZY

BOLTS SCREWS NUTS

MANUFACTURING

SALES

www.asmet.com.pl

LOGISTICS

Food Industry

From The President’s Press Office From The Government Information Centre Ewa Kopacz, Prime Minister: Official absurdities have to disappear Marek Sawicki, Minister of Agriculture and Rural Development: Success and time for conclusions

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Bożena Lublińska- Kasprzak, President of the Polish Agency for Enterprise Development : PARP will continue to develop analytical, research and evaluation activities

Jacek Kopyra, Vice-President of the COP (Central Industrial District) Cluster: The COP Cluster a unique formation in the Polish economic reality

Alma Kadragic, Director Media & Business Development, Polish American Chamber of Commerce of Florida & the Americas, Inc.; President, Alcat Communications Int’l LLC: Finally Coming Back to the Polish Market

Leszek Ladowski: Florida Gateway to the Americas, Poland Gateway to central & Eastern Europe

Prof. Alojzy Szymański, Rector of the Warsaw University of Life Sciences (SGGW): We train professionals for the Polish economy

President Bronisław Komorowski visits Jana Dairy Cooperative in środa Wielkopolska

Jacek Wyrzykiewicz, PR&Marketing Services Manager, Hochland Polska Spółka z o. o.: Hochland Polska a socially responsible company

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Marek Wcisło, Managing Director of Kompass Poland: The poultry industry a golden egg of the Polish economy

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Ireneusz Łazor, President of Polish Power Exchange (POLPX): Power exchange as an institution of public trust? This is possible.

Janusz Steinhoff, Deputy Prime Minister and Minister of the Economy in the Cabinet of Jerzy Buzek: The Polish Natural Resources Policy

Monika Piątkowska, Member of the Board of PMPG Polskie Media SA, former Vice-President of the Polish Information and Foreign Investment Agency (PAIiIZ): A quarter century of local government in Poland

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Zygmunt Berdychowski, President of the Programme Council, Organiser of the Economic Forum: We advocate a wide spectrum of discussion

Energy

Jerzy Bojanowicz: Poland at Expo Milano 2015

Derek Neilson, Chief Operating Office EMEA for CNH Industrial: CNH Industrial is helping modernize Polish agriculture and leading from the front

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Karol Zarajczyk, President of the Board of Ursus S.A.: The Legend returns The 3rd Congress of Polish Agri-Food Exporters Elżbieta Tęsna, President of Eltar: Despite the dominance of the Internet, fairs are an important marketing venue Krzysztof Koszela, Director for Exports and the Development of Foreign Markets: The brand must go together with high quality

Local Government

Andrzej Gross, President of the Agency for the Restructuring and Modernization of Agriculture (ARiMR): We are all beneficiaries of the Common Agricultural Policy

Andrzej Drosik, Member of the Board, Nutricia Zakłady Produkcyjne Sp. z o.o.: Nutricia The highest quality for children’s health Programme - 2014-2020

Innovation

Grażyna Henclewska, Deputy Minister of the Economy: Smart specialisation is designed to contribute to the transformation of the economy

2015

Agriculture Polish Innovation Congress Expo Milano

Our Guest

SPIS TREŚC CONTENTS

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Bohdan Juchniewicz: We are conquering organic food markets Jerzy Bojanowicz: Golden Engineer 2014 Andrzej Sajnaga, President of the Board and founder of ASmet Sp. z o.o. Sp.k.: ASmet among European leaders Prof. Andrzej M. Pawlak, President of Vortex Innovation Consulting Group: Complementary programme for supporting innovation in Poland

Henryk Majchrzak, President of the Board, PSE S.A.: PSE S.A.: For the sake of security of the National Power System Anna Nowakowska, Sales and Marketing Director, Stena Recycling: Waste a new commodity in Europe

European Congress of Local Governments Kraków a brand of its own

Lekam - one of the fastest growing pharmaceutical companies in Poland Paweł Skrzywanek, President of Uzdrowisko SzczawnoJedlina S.A.: We are a very special phenomenon in business and medical terms

Prof. Małgorzata Zaleska, a member of the Board of the National Bank of Poland (NBP), professor at the Warsaw School of Economics (SGH) and vice-president of the Committee on Financial Sciences Polish Academy of Sciences: The past and future of the Bank Guarantee Fund

Zdzisław Kupczyk, President of Bank Polskiej Spółdzielczości SA (BPS SA): Cooperative banks are needed and have a future

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Cultural Monitor Andrzej Siezieniewski, President of the Board of Polish Radio: Source of social development for 90 years now

Maciej Proliński: Prince Józef’s apartment

Zofia Gołubiew, Director of the National Museum in Kraków: The new media is a means and not an end

Maciej Proliński: Adès’s chamber opera premieres in Warsaw

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SPIS TREŚCI CONTENTS

New generation of cochlear implants - another breakthrough in partial deafness treatment

Design

Medicine Finance Culture

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Aleksandra Defitowska, Director of the Advertising Products Department at Wittchen: We keep investing in our development Economic Monitor

Zdjęcia w numerze / Photos on issue: www.shutterstock.com

Corrigendum: The article “Smart Specialisation in Kujawsko-Pomorskie province,” published in issue 3 (222)/2015 p. 67, was authored by professor Bogusław Buszewski, Marta Dolecka and Marek Rozpłoch - Agenda of Science and Innovation, Kujawsko-Pomorskie Marshal Office.

4/2015

DTP: Godai Studio www.godai.pl

President: Krystyna Woźniak-Trzosek

Writers/Editors: Maciej Proliński, Jan Sosna, Sylwia Wesołowska- Betkier, Grażyna Śleszyńska, Janusz Korzeń, Jerzy Bojanowicz, Janusz Turakiewicz,

Vice - Presidents: Błażej Grabowski, Grażyna Jaskuła

Contributors: Agnieszka Turakiewicz

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Editorial

A time of important changes

ost of those asked about dominant economic areas characteristic of the 21st-century civilisation would probably cite electronics, IT, biotechnology and nanotechnology, or even artificial intelligence. However, statistics bring us down to earth. The International Energy Agency (IEA) forecasts that three-quarters of the global investment in the next two decades will be in modern energy systems. Most of the world’s energy investment until 2035 will be directed at transmission and distribution, as well as renewables. Fossil fuels and nuclear power will only come after. Thus began the great modernisation of energy systems. But the leadership belongs not to Europe, but first of all to China, then also to other emerging economies. In recent decades, Europe invested mostly in renewables and in the gas sector, whereas coal was hailed the enemy No. 1. It is a time of important changes for our continent, decisions are made concerning the energy mix for the years 2020-2030 and beyond. The Lisbon Treaty guarantees the sovereignty of Member States in deciding the energy mix, but the reality, as usual, is much more complex. The European Union has taken up the challenge of improving environmental standards and one of its priorities is the climate and energy package designed to reduce the EU’s global carbon emissions. During the European Council’s climate summit, on 24 October 2014, it was agreed that the EU will cut CO2 emissions by at least 40% by 2030, compared to 1990 levels, and the share of renewables will be at least 27%. This target will be binding on the EU level, but not for the individual Member States. The task is very costly, therefore – as in the years 2013-2020 – less wealthy countries (i.e. with the GDP below 60% of the EU average), including Poland, will be able to provide domestic power plants with free-of-charge emission allowances. Poland can count on approx. 280 million free allowances. Also, the power sector modernisation fund will be set up financed from the EU’s reserve of emission allowances. Poland should allocate the money from the fund for upgrading energy production and energy efficiency improvements. The second element of the primacy of the EU policy over national strategies is energy security. Paradoxically, Poland - defending the sovereignty of its strategy against the domination of the common climate policy - called for the harmonisation of the EU energy policy to increase energy security. Already in 2010, Jerzy Buzek, the then President of the European Parliament, and Jacques Delors, the former President of the European Commission, came out with the proposal to establish the European Energy Community, arguing that it is necessary to create an integrated energy market, but above all, to endorse individual Member States in confrontation with fuel suppliers. The European Union, according to Eurostat’s data for 2013, imports 65% of gas and more than 80% of petroleum products, spending on energy imports about EUR 400 billion every year. However, only the Ukrainian crisis and the overt threat of Russia’s using fuel supplies as a means of retaliation did prove that Poland’s position was indisputably right, making the energy security one of the EU priorities. The result of it – as confirmed at the European Council’s summit of 28 March 2015 – is multiple actions aimed primarily at accelerating the integration of European power and gas markets, increasing investment in energy infrastructure (under “Connecting Europe” and dedicated programmes, e.g. the North-South Energy Highway), and verifying the compliance of contracts with fuel suppliers with EU law. How should the Polish energy sector be modernised, then? Undoubtedly, it is necessary to step up debate and make decisions upon drawing conclusions from the previous EU financial period. We had (and still have) the strategic “Polish Energy Policy until 2030.” But it was actually enough to compare it to the strategies of the largest energy companies to realise that the long-term government blueprint is completely incompatible with them. Now we are facing the task of making full use of our portion of emission allowances and EU structural funds. So far, approx. 40% of them have been unused. In order not to let it happen again, it has to be decided, at a national level, what these funds will be spent on and how. It was not specified at the European Council summit how that modernisation should look like. Thus, Member States were given the discretion to decide whether they want it to be based on coal, gas, renewables and nuclear power, and to address a number of other questions: Should energy production be increased? How to use energy resources more economically? Should the responsibility for the consumers’ energy comfort lie with powerful corporations, or perhaps should it be shared with prosumers? Finally, how should we make the most of these large resources and of little time that is left? Krystyna Woźniak-Trzosek Editor-in-Chief President of Rynek Polski Publishers Co. Ltd.

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President

We can enjoy excellent Polish-Finnish cooperation

“

He claimed that the partnership between the two countries and close relationships between both societies bring, and will continue bringing, a lasting contribution to the mission of building a secure, stable and modern Europe. “Historical experiences of both Finns and Poles teach us that independence is such a great value that it is worth fighting for it, even in seemingly hopeless situations. Therefore, today’s Poland and today’s Finland attach special importance to an effective defence policy,” said Bronisław Komorowski. He welcomed Finland’s increasingly close cooperation with NATO. The President also said that Poles like and respect the Finnish culture in all its aspects. “It is important that, admiring the Finnish school of design and architecture, we can also here, in Poland, enjoy the works of prominent Finnish architects, one of which is the awardwinning premises of the Museum of the History of Polish Jews,” he said. President Niinistö thanked for hospitality. “I am convinced that after our visit contacts between Poland and Finland will become even closer,” he said.

Poland and Finland can enjoy excellent cooperation in many areas,” President Bronisław Komorowski said on Tuesday, 31 March. President of Finland Sauli Niinistö expressed the belief that after his visit to Poland contacts between the two countries will become even closer. Bronisław Komorowski and his wife Anna held a reception on Tuesday night in the Presidential Palace in honour of the Finnish Presidential Couple. Bronisław Komorowski emphasised that we can enjoy excellent Polish-Finnish cooperation in many areas. “Our business relations are developing, Finnish investment in Poland is growing, its value exceeds EUR 1.5 billion,” he said, adding that Poles admire innovative nature of the Finnish economy. Komorowski also pointed out that Poland and Finland have been partners in the EU for almost 11 years. “We have convergent views on energy security, the internal market, the need to strengthen the EU’s defence capacity and continue the enlargement process. We have a common understanding of the transatlantic trade and investment partnership. We advocate strengthening the EU’s clout in the world and countering disintegrating tendencies within the EU,” Komorowski said.

Poland is involved in efforts towards removing the threat of terrorism resident Bronisław Komorowski took part, alongside other foreign leaders, in a march against terrorism in Tunis on March 29. The President stressed that Poland was involved in efforts towards removing the threat of terrorism. The march was a response to a terrorist attack perpetrated on 18 March at the Bardo National Museum, which killed 23 people, including 3 Poles. “Today’s march of solidarity with the victims and against terrorism is a signal that Poland is involved in any form of efforts towards removing the threat of terrorism and pays the same price for it. In a special way, we paid tribute to the Polish victims. Poland fully understands Europe’s concerns and its interest in the South, from where the threat of terrorism flows,” said Komorowski during the briefing in front of the Bardo Museum after the march. “We also want Europe to see what Poland sees every day, which is a threat to the world, to the European Union, coming from the East,” said the President. The march was also attended by French President François Hollande, Italian Prime Minister Matteo Renzi and Palestinian leader Mahmoud Abbas. Hollande urged in Tunisia and the international community to unite forces in the fight against terrorism. He stressed that the terrorist attack Tunis dealt a blow to the country that lived through the Arab Spring and has achievements in the field of democracy and pluralism. President of Tunisia Beji Caid Essebsi was accompanied by foreign leaders who joined the march on the last stretch: from the Parliament to the National Museum of Bardo. A plaque was unveiled in the museum with the names of all the victims, under which delegations laid flowers. Thousands of people participated in a demonstration in Tunisia’s capital on Sunday. Chanting “Tunisia is free! Terrorism out!,” demonstrators marched to the Bardo Museum. Most of them were carrying

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Photo: Wojciech Olkusnik

national flags; some were holding cardboard signs, later deposited in the museum, with the names of those assassinated. Bronisław Komorowski stated during the briefing that Poland must learn sensitivity to the phenomena so far unknown to us that are now painfully making their way to our minds. “At the same time, we try to teach the entire Western world sensitivity to the phenomena that upset us. The world is not safe, but thanks to the solidarity with the victims and solidarity in the fight against evil phenomena in the world, we can feel a bit safer,” he said.

Prime Minister

Prime Minister Ewa Kopacz at the European Council summit

he head of government took part in an informal meeting of the European Council in Brussels on March 19-20. “The EU summit should adopt tough and clear provisions stipulating that the economic sanctions against Russia will be continued,” Prime Minister Ewa Kopacz said before the meeting of the EU leaders. The agenda of the meeting included, among other things, the issues of the Energy Union, eastern policy of the European Union and the economy. The sanctions against Russia were also discussed during the meeting between Prime Minister Ewa Kopacz and the leaders of the Visegrad Group countries immediately before the summit. “I’m going to convince them that a joint position and European solidarity about the sanctions which we are going to extend now is by far the most obvious thing. We

have to demonstrate solidarity. This is our strength,” Kopacz said before the meeting with the leaders of the Czech Republic, Hungary and Slovakia. Prime Minister Ewa Kopacz also talked to Prime Minister of Ukraine Arseniy Yatsenyuk, who arrived in Brussels, and Prime Minister of Italy Matteo Renzi. Members of the European Council issued a statement condemning the acts of terrorism in Tunisia. “If there is no effective opposition to terrorism in the world and in Europe, such countries as Poland will be exposed to attacks. We must be united in fighting against terrorism, just as we are now trying to put an end to hostilities in the east of Ukraine,” stressed Poland’s Prime Minister.

The Prime Minister of Sweden talks security and energy on his visit to Poland n March 16, Prime Minister Ewa Kopacz met in Warsaw Prime Minister of Sweden Stefan Löfven. The visit was part of consultations before the European Council summit. “Today’s meeting confirms the strategic nature of our relations,” emphasised Prime Minister Ewa Kopacz. She added that Poland was developing cooperation with Sweden in many areas, including the Eastern Partnership, security and defence, energy policy, as well as cooperation in the Baltic Sea region. The head of the Polish government said Poland would assume the presidency of the Council of Baltic Sea States in July. Prime Minister Ewa Kopacz stressed the importance of the meeting in the run-up to the European Council summit devoted to maintaining sanctions on Russia and to the issue of the Energy Union. “The key to a strong Energy Union is Europe’s solidarity in the event of a supply crisis, as well as transparency of supply contracts,” said the head of the Polish government. She pointed out that the signed agreement should strengthen the EU’s energy security. Prime Minister Ewa Kopacz added that domestic sources of energy should remain the pillar of energy security. Neither source of energy or technology should be rejected in advance if they strengthen energy security without endangering the environment,” she said.

The head of the Polish government an nou nced that one of the main topics discussed was security, especially in the context of the situation in Ukraine. “Poland and Sweden have a similar perception of the developments in Russia and in eastern Ukraine,” she claimed. She added that the solidarity of the European Union in tackling the conflict in Ukraine was invaluable. Both Prime Ministers agreed on the need to respect and monitor the implementation of the Minsk Agreement.

Photo: M. Śmiarowski KPRM

The visit of the French Prime Minister

n, 12 March, Prime Minister Ewa Kopacz met French Prime Minister Manuel Valls. The aim of the meeting between the heads of government was to discuss the European economic agenda, including energy union issues and climate policy, as well as to give a new impetus to bilateral economic cooperation and security issues. The visit opened a series of Prime Minister Ewa Kopacz’s international consultations before the European Council summit. Prime Minister Ewa Kopacz talked with French Prime Minister Manuel Valls about the economic challenges to be discussed during the European Council’s session. “Together, we support Juncker’s Plan, and perceive it as an opportunity to strengthen financing of the European economies. We are in favour of deepening of the single market and building a strong Energy Union,” Prime Minister Ewa Kopacz said. According to the head of government, what needs support is the system of research and innovation in the economy. She added that the condition for the economic recovery is inviolability of the four EU freedoms – free movement of persons, services, goods and capital.

The Polish and French Prime Ministers also discussed security issues and the conflict in Ukraine. “We agreed that putting an end to the conflict in Ukraine is of crucial importance. We must keep the clear policy of the European Union,” Prime Minister Ewa Kopacz said. She pointed out that the European Union would monitor whether the ceasefire is observed and the Minsk agreement implemented. Poland and France will also support reforms in Ukraine, both as part of bilateral relations and at the EU forum. Two agreements were signed in the presence of the Polish and French Prime Ministers: • between the Polish Space Agency and French National Space Research Centre; • between the National Nuclear Research Centre in Świerk and French Commissioner’s Office for Nuclear Energy and Alternative Sources of Energy.

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Our Guest

Official absurdities have to disappear Ewa Kopacz, Prime Minister

he concrete things with which I have come to you today include the guidelines for a new tax statute worked out by a committee under Prof. Leonard Etel and presented on March 17. I am guided by one primary objective in my activity in this area: the relationship between the official and the taxpayer has to change. The official absurdities which make the life of honest entrepreneurs miserable have to disappear. I stand by the principle that, in the area of economic freedom, when making law we should have in mind the 99% of taxpayers who are honest rather than the 1% who are not. I talked about it in

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my policy speech and my words are reflected in the guidelines for this tax law. At present, the draft is at the stage of public consultations. I will briefly outline what it contains. First of all, we want to introduce a clear and detailed catalogue of the taxpayer’s rights and duties, a catalogue which will be protecting the taxpayer’s position, on the one hand, and giving tax offices a clear code of practice on the other. We want to introduce the principle, widely discussed today, that matters should be resolved in favour of the taxpayer as well as the principle of proportionality understood as a ban on excessive interference in the sphere of the taxpayer’s rights

Our Guest and freedoms. Taxpayers deserve respect and honest and transparent treatment. The state should collect taxes rather than grab them. Sometimes I have the impression that not all of the officials get the message. We have to change that. This is why we have radically shortened the statute of limitations in our draft. Europe is still grappling with the consequences of the global financial crisis. Despite recent signals indicating that the situation may improve, the largest economies in the region are still teetering on the brink of recession. Meanwhile, the Polish economy is constantly expanding. If we exploit the emerging opportunities in the right way we stand a chance to catch up with highly developed economies. At a time of crisis, it is mainly an innovative economy that ensures growth and job creation. An excellent example is the mobile applications industry, which a few years ago did not even exist, but now provides employment to nearly 2 million people in Europe. It also generates billions in revenue and has a bright future, according to a report by the European Commission. It is an industry where no big investment is needed at the start. The most important thing is an idea and a talented team able to put it into practice. Polish firms have recently achieved a great success on the computer games market. The “Witcher” game series is an example of a Polish flagship export product and of building a global brand. A great chance for Europe, and for Poland in particular, is completing the process of creating a digital single market, a flagship project of the European Commission now. It is one of the priorities of President Junker. Just like the single market project of 1985 provided Europe, which was in crisis then, with an indispensable boost to modernize, a similar impetus is now needed to put the European Union back on a development and growth track. Over the decade of our European Union membership Polish businesses have proven that they are able to successfully compete with the best. It is enough to give them undisturbed access to the market. The European Union’s basic market freedoms have to be respected so that every entrepreneur can provide services and deliver goods across the EU without any obstacles and additional requirements. Unfortunately, these simple rules are not always adhered to at local level. We have many such examples. The administrative burdens imposed so as to meet goals, which are not always reasonable or indispensable, constrain the operation of European entrepreneurs and put them in a no-win situation against their global competition. The question often arises: How to efficiently invest public money? I will answer perversely: No one knows that better than Polish leading entrepreneurs. In implementing their projects, the public authorities should transplant models from business life whenever possible. Firstly, we should focus our efforts on developing modern technologies, something which is consistent with the Lewiatan Confederation’s recommendation included in its second White Paper. There is no better investment than investment in modern and innovative technologies. Such investments pay for themselves the fastest and, which is the most important, many times over. They generate savings and contribute to a significant rise in the productivity of businesses, a reduction in harmful emissions and a better use of human work. The European Union’s new financial framework and the record amount of funding we have managed to secure are a great chance for the implementation of innovative projects.

We have at our disposal nearly PLN500 billion, which will go to the Polish economy. We have to see to it that as much of the money as possible is used to carry out innovative projects based on modern technologies. However, a fundamental change in the way of thinking is needed when awarding and accounting for this money. We have to acknowledge that a truly innovative activity involves a risk. Not every invention means application and not every start-up is a success. It is not merely a problem of the public authorities – the whole Polish and European culture has a problem with adopting this perspective, which is quite natural for Americans, for instance. We have to realize that failure is sometimes a price for risk and that we must not stigmatize or punish innovators for risk taking. Otherwise, we will be condemned forever to imitating and adopting well-tried and safe solutions from real innovators. The money we have managed to acquire under the new financial framework will represent the biggest ever transfer of money to our country. We know very well that there will be no second chance like this. The money may change our country’s position for good. Another extremely important direction is investment in people. It is people, not businesses, that are innovative. First of all, we have to make our education system more flexible and modern, and to adjust it to the needs of a modern economy. These activities have already been undertaken and have produced results. We have to continue and constantly improve them. Our society, still young and well qualified, is our great asset, our great competitive advantage over other countries. The talent of Polish graduates, especially that of engineering graduates, is well known across the world. The world’s biggest corporations employ them eagerly. By opening more and more technology parks, research and development centres and enterprise incubators, we have to think first of all about these young people. At present, those who enter the market are required to have higher skills and different from those expected from their parents. We have to make the public realize that in today’s world we are destined to learning for life, constantly raising our qualifications and developing practical skills. The state, as well as entrepreneurs, has a big role to play here. Not everyone has already come to understand that a firm’s employees are its most important resource, in which one has to invest just like one has to invest in machines and software. EU Commissioner Günter Verheugen, a great friend of Poland, said once that innovation was the ability to turn knowledge into money. I fully agree with this opinion. Ahead of us is a great project of building an economy based on knowledge and innovation. To carry out this project, we need both human resources and money. We have already taken care of the latter by securing record funding from the EU. We also need a friendly economic environment and, perhaps first of all, good cooperation between public authorities and entrepreneurs. I declare I am fully open to such cooperation and to solving your problems. I know that the success of entrepreneurs is an indispensable component of our country’s success. I am convinced that by listening to each other we will be able to efficiently invest this largest ever EU funding, creating a modern economy based on knowledge and innovation. Remarks at a conference entitled “Poland 2015-2025. How to Efficiently Invest Public Money?” organized by the Lewiatan Confederation •

4/2015 polish market

Our Guest

Success

and time for

conclusions

“In 2014, we exported products worth EUR21.3 billion, or around EUR1 billion more than a year earlier,” says Minister of Agriculture and Rural Development Marek Sawicki. “I would like to thank all entrepreneurs and exporters that, despite such a difficult situation, the year 2014 was another one to see our exports in double-digit growth.”

he year 2014, a very difficult year, is now over. We had an abundant harvest and high production, but this was coupled with phenomena beyond our control – African swine fever in Lithuania in February 2014, then in Poland and Estonia, and since August 1 a Russian embargo on most of our agri-food products. Luckily, since 2008 we had been building a dispersed exports model and Russia was not our main customer. However, it still was a major market because in recent years we sold there food products accounting for 6% of the value of our total food output. The cutting off of this market has had a great impact on our domestic market and to a large extent also on the European market. This success is, unfortunately, not likely to be repeated in 2015, despite the fact that, in the face of the embargo, we have found other markets for our products. At present, the most difficult situation is on the pig and milk markets. The other markets are relatively stable. The situation in the fruit and vegetable sector varies. It is difficult on the apple market, but on the remaining markets it is not that bad if compared to the average for the last five year. In 2014, we recorded increases in production ranging from several per cent to a few dozen per cent compared to the average for the past five years in all market segments and product group, except for blackcurrants, gooseberries and pork. We are now Europe’s largest producer of apples, poultry and button mushrooms. We are also a major producer of milk and beef. But this is the end of the good news - we have to significantly change the manner and

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style of our activity. Keeping our exports growth at 5% will not be possible without consolidation in the food-processing sector. The ability of the food-processing sector to compete by offering lower prices has been exhausted and so has the farmers’ patience. It is impossible to continue with this. If we want to retain our old markets and enter new ones – like China, India and Japan we must not allow a situation where, for example, 69 milk-processing companies make a joint effort to enter the Chinese market and then each of them sells products on this market independently. It is time to put an end to this anarchy and seriously start building joint sales platforms. I was in India this year – large serious companies there are seeking a Polish partner, however, not a partner who sells milk, dairy products and fruit in crates because these companies need 15 or 20 containers a week. If we want to enter large markets we have to consolidate so as to offer uniform products and not to compete in price with each other. The price issue is important. A top shop in Delhi offers products of six Polish firms. The head of the shop praises their very high quality and very attractive price. Of course, she means the price offered to the retailer, not the consumer. This is a signal. I want to address the same observation to the poultry sector – German, Danish and Dutch producers blame us for pushing poultry prices down on European markets by 15% or up to 20%. This shows there is much room for price increases. Likewise, how not to blame ourselves if we enter the Chinese market with dairy products and offer prices comparable to that of

Chinese products? How can we keep prices at home at a low level and ensure respect for our products if we sell dairy products in Algeria cheaper by 20% than the French, even though the quality of these products, compared with the French ones, is not inferior and often better, as research conducted in Algeria indicates. We have experienced a few good years of prosperity, with very high demand for food in the world. But now the market has narrowed a bit – there are more sellers than buyers. This situation is probably temporary as the world’s demand for food grows faster than production potential. This, however, does not mean that one can always find a buyer. In India, only around 0.5 billion people, of the total population of 1.3 billion, buy food. The remaining people do not buy food - 90% of the food produced in India is consumed directly by the producers. At least 30% of the food is spoiled at the time of the harvest and because it is not processed. I want to draw your attention to the fact that there is demand for us to come there also with our cooling and processing technologies. When summing up this good period, we should draw conclusions and adjust to new conditions. I want to stress once again – on the large global market there is no place for those who are unorganized. It is easy for us to sell on European markets. We know their channels and rules and are managing very well here. But to conquer distant markets it is nec• essary to work together. Remarks at the Third Congress of Polish Agri-Food Exporters, March 12, 2015

Smart specialisation is designed to contribute to the transformation of the economy

Finance

Grażyna Henclewska, Deputy Minister of the Economy What are the main objectives of the Operational Programme Smart Growth 2014-2020. How is it different from the Operational Programme Innovative Economy? Poland, for the second time, will be a beneficiary of European funds. Our task is to use them as efficiently as possible, also drawing upon past experience of the Operational Programme Innovative Economy. The Operational Programme Smart Growth will, even more than its predecessor, be focused on implementing innovations and supporting cooperation between science and business. The focus will be put especially on the use of existing resources and the consolidation of the potential of research units within the framework of joint projects. The amounts will vary depending on the risk of the project (grants for the most risky phases of R&D projects, repayable support for the implementation of R&D results and new technologies). Preference will be given to mechanisms strengthening joint involvement of science and business, and projects standing the greatest chance of commercialisation. It is worth mentioning that the Ministry of the Economy has developed the Business Development Programme (PRP), which was adopted by the Council of Ministers on 8 April 2014. It provides a detailed concept of the business support system in Poland, with a particular emphasis on improving innovation. PRP was not only an inspiration in the programming of the new financial framework in terms of support for entrepreneurship and innovation, but also a very important contribution to the Operational Programme Smart Growth. An integral part of the Business Development Programme is 19 areas of smart specialisation. Their strategy is to determine economic priorities within R&D&I and to focus investment on areas allowing to increase the added pm

value and competitiveness of the economy on international markets. Smart specialisation is supposed to contribute to the transformation of the national economy by its modernisation, structural transformation, diversification of products and services and creation of innovative social and economic solutions. This will also involve support for transition to a resource-efficient economy. Areas of smart specialisation were identified in the following spheres: healthy society, agri-food and environmental bio-economy, sustainable energy industry, natural resources and waste management, innovative technologies and industrial processes, as well as creative smart technologies. It is these areas that will benefit in the first place from the support under the Operational Programme Smart Growth. Support will also be given to projects which contribute to the development of sustainable linkages and synergies between science and business so as to allow effective transfer of R&D results. In summary, the Operational Programme Smart Growth is supposed to help ensure that R&D results are transformed into business success to a greater extent than before. Promoting innovation and stimulating competitiveness of Polish businesses is one of the priorities of the Ministry of the Economy because, as you rightly pointed out, innovative entrepreneurs are the driving force of the modern economy. How do you intend to implement this priority? The main objective of the Operational Programme Smart Growth is to support innovation and competitiveness of the Polish economy. It is particularly important that the new programme makes the most of the experience of the Operational Programme Innovative Economy, including fine-tuning of the evaluation pm

system to allow the implementation of the most risky and potentially the most profitable projects. A key task will also be to make such a choice of projects so as public money does not substitute private initiative, and innovative investment is encouraged. At the moment, the main challenge is dynamic modernisation of the Polish economy and internationalisation of companies implementing new technologies. In my opinion, we need to allow a greater risk in the evaluation of innovative projects co-funded by the European Union. As part of the Operational Programme Smart Growth for 2014-2020 the Ministry of the Economy will be responsible for the implementation of two priority axes: II - Support for businesses to carry out R&D&I and III - Support for businesses to implement innovations. The Ministry of the Economy, as an intermediary institution, will select competition and out-of-competition projects, manage financial instruments and funds allocated for the implementation of the instruments under II and III priority axis of the Operational Programme Smart Growth. In this context, our task will be to further support cooperation between research & implementation institutions and innovative enterprises, as well as to create R&D infrastructure for companies and help them going global. We also want to continue to support companies entering the global markets. The Ministry of the Economy has created the Polish Acceleration Office in the Silicon Valley to facilitate entrepreneurs to gain experience on the world’s most competitive market. The Polish Silicon Bridge (a joint project of the Ministry of the Economy and the PARP) allows to find partners in the sector of new technologies. •

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Our Guest

PARP will continue to

develop analytical, research and evaluation activities

Bożena Lublińska-Kasprzak, President of the Polish Agency for Enterprise Development (PARP)

n the new EU financial period, which ends in real terms in 2022, the Polish Agency for Enterprise Development will operate under changed conditions. The scale of support instruments will change: the number of direct beneficiaries will be smaller, but the impact and results achieved with the support of PARP will increase. So far, PARP has worked with thousands of beneficiaries, with almost 17,000 contracts being concluded in 2007-2013! Such a change will further develop PARP’s cooperation with businesses, based on expert, individual and partnership approach. We are planning to base PARP’s support system on the continuous programming mechanism. The priority for strengthening effectiveness – regardless of the field (economic innovation, human capital, environment, infrastructure, etc.) – should be evidence-based policy. Proper knowledge management, evaluation culture, creation of learning organisations and promotion of their activities, all this forms the basis of innovation, including in public administration. These standards stimulate a pro-efficiency approach to tasks. When implementing systemic changes, proposing new support schemes we will use a wide range of R&D tools, i.e. pilot activities that will allow to test, as if in a lab, new/risky ideas. A significant role will be played here by evaluation which, resorting to expert support and specialised research methodology, continually provides knowledge of the effects and effectiveness of public activities, not only in terms of the support provided by the EU. PARP will continue to develop analytical, research and evaluation activities, with a greater-than-previously focus on programming an intervention, i.e. a detailed purpose specification, on the assessment of the effectiveness of business support instruments, as well as on the evaluation of the condition of the SME sector in Poland, its potential and development prospects. Under the ongoing financial framework PARP has introduced a number of improvements, raising implementation effectiveness. The result is higher quality and speed of the implemented programmes. Individual approach, project supervisor, PARP’s expert support, assistance in matching a coach to companies carrying out complex long-term development projects – these are just some of the proposals and proven actions that PARP will offer entrepreneurs as part of its subsequent support instruments. PARP is also moving towards greater flexibility and simplification of the evaluation criteria in such a way as to promote projects with highest added value. We want to reorganise the system of selection and evaluation of projects in

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order to more accurately anticipate possible risks in the implementation of radical innovations, in a quest to introduce breakthrough solutions. To this end, we keep working on PARP’s in-house programming processes that would, on one hand, support entrepreneurs in making a convincing business case for their projects, and on the other hand, allow to select the best ones more effectively. As part of the Smart Growth Operational Programme (POIR), PARP will implement instruments dedicated to close-to-market projects, i.e. development and implementation projects. These will include in particular a new instrument “Research for the Market” that will support innovations implemented on at least national level based on R&D carried out by entrepreneurs themselves, on their behalf or purchased. In addition, we also want to support “Business for Business” projects by stimulating private capital market players to show greater interest in supporting corporate projects. •

Expo Milano 2015

Poland at Expo Milano 2015 The main goal of Poland’s participation in Expo Milano 2015 is to build lasting confidence in brand Poland and brand Polish Economy. Poland will be shown as a modern and economically successful nation, an attractive business partner and a country close to Italy in terms of economy and lifestyle.

Jerzy Bojanowicz

ore than 140 countries will be taking part in the Expo Milano 2015 universal exhibition to be held in Milan, Italy, from May 1 to October 31, 2015 under the theme “Feeding the Planet, Energy for Life.” The organizers expect a record number of visitors – over 20 million. It comes as no surprise then that Poland will be shown at the exhibition as a country with a European lifestyle, open and friendly, basing its success on modern design while at the same time respecting tradition, and a country where – just like in Italy – agriculture has become a driving force behind exports. “We are absolutely at the top. Poland is the biggest net exporter of food in Europe,” says Sławomir Majman, president of the Polish Information and Foreign Investment Agency (PAIiIZ) and general commissioner of the Polish Section for Expo 2015. As it is the first Expo with so much prominence given to the agri-food sector, Poland has focused on presenting its latest solutions in organic farming, food processing, biotechnology and environmental protection. On the other hand, deputy Prime Minister and Minister of the Economy Janusz Piechociński says: “We want to present a Poland of ideas, concepts and the spirit of enterprise, Polish culture and tomorrow’s Poland, which is now entering an advanced development phase.” The Polish Pavilion will house a broad and attractive range of Polish products. It will also show the elements of Polish culture and eating tradition which are the most similar to Italian traditions, like meetings with one’s family and friends. “Poland is a country with a European

lifestyle, open and friendly. We like good food and good design, just like Italians do,” says Sławomir Majman to explain the concept of the Polish presentation. “We want the magic Polish Pavilion to win the hearts of our Italian friends and not only their hearts.” The Polish Agency for Enterprise Development (PARP) is responsible for the technical and organizational aspect of Poland’s participation in Expo Milan 2015. At Expo 2008 in Zaragoza, Poland won Third Prize in the most attractive national pavilion category. The Polish Pavilion was visited by 400,000 people. In Shanghai in 2010, Poland received silver medal for the most creative presentation. The Polish Pavilion was enormously popular with the Chinese. It attracted 8.2 million people, which made it one of the most frequently visited pavilions. The Polish Pavilion in Milan, built on a rectangular plot of 2,370 sq m, has been designed by the 2pm Piotr Musiałowski practice, the winner of a contest announced by PAIiIZ. As many as 59 architectural studios took part in the contest. The idea behind the design is inspired by Polish orchards and horticulture, exploiting the motif of wooden crate used as packaging in the transport of vegetables and fruit. Unfortunately, the pavilions will be torn down after the end of the exhibition – in contrast to the Eiffel Tower, built for the world’s fair in Paris in 1889, and Atomium, the building constructed for the world’s fair in Brussels in 1958 in the form of a monumental model of an iron crystal magnified 165 times. Events intended for the general public and specialists will be held at Expo 2015, including such cultural events as concerts, happenings,

exhibitions, film showings and culinary shows. The Enterprise Europe Network at PARP invites firms operating in the broadly understood agri-food processing sector to a cooperation market on May 6 and 7. “We are preparing a plan of marketing activities promoting Polish agriculture, including our innovative agricultural sector, which is one of the most modern in Europe,” says Bożena Lublińska-Kasprzak, president of PARP. “We will also organize a scientific conference to present the potential of the Polish agri-food sector.” It was at Expo 1992 in Seville that Poland had its own independent pavilion for the first time after the Second World War. Poland got the pavilion for free from the organizers on the initiative of Spanish King Juan Carlos. Poland designed and built its first own Expo pavilion for the Hanover exhibition in 2000. It was the fourth most visited pavilion among the 172 countries taking part in the Expo. Will Poland repeat the success of Expo 2010 in Shanghai (on that occasion we issued an English-Chinese edition of “Polish Market” – March 2010)? Let me remind you that the Polish programme of promotion – especially economic promotion – won recognition from Chinese opinion-forming media while Poland received a prestigious award for the best country promotion programme as part of the 2010 CBN Marketing Awards for Expo 2010 Shanghai China. • The southern Polish city of Wrocław competed for the right to organize an Expo twice – in 2010 and 2012. It failed to win but – as Polish people say – it is third time lucky.

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Polish Innovation Congress You are going to organise the congress “Florida - Gateway to the Americas, Poland - Gateway to Central and Eastern Europe” on 16 April. What is the idea behind this event? For almost two years, the COP Cluster has been trying to build up cooperation with many business communities in Europe and around the world. Our contact network is the sum of the experience gathered over many years, in the course of business and social activity carried out in various fields. These contacts often lead to the creation of common interest groups which, working together, can generate a great potential to be used in attaining goals that lie beyond individual capabilities of even the largest companies. In a dialogue with the members of the cluster, we listen carefully to what entrepreneurs want to share. These are usually problems encountered in the development of their own businesses. For example, a strong urge has recently been brought to the foreground to find new outlets and overcome barriers to achieving a competitive advantage. Assistance in solving such problems is one of the premises that guided the creation of the COP cluster. By fostering synergies of cooperation among business, local governments and science we aim to make it easier to our members to achieve a strong market position. One such attempt was extending invitations to our partners from the Polish diaspora in the United States, firmly rooted in business, to CAMACOL, an association of the largest companies of Latin America and one of the most dynamic economic organisation in both Americas, as well as to decision-makers of financial institutions, local governments and the US State Administration. Following these communication efforts, a mission representing these environments was set up and will visit Warsaw in mid-April. Its aim is to establish close contacts with Polish counterparts of its members. In consideration of the mission’s potential, we proposed to organise a congress, which would inaugurate a series of annual meetings aimed at deepening Poland’s cooperation with Latin America and Florida. We also invited the Polish government to participate in this year’s congress, something that, in my view, could be a good signal in support of the direction pursued by the COP Cluster and would be a unique opportunity for Poland to give a boost to its trade relations with a huge Latin American market. We also want to present opportunities offered by opening to new markets, especially those represented at the congress. It will be possible to become familiar with the general assumptions of the cooperation developed, but also establish direct contacts with business representatives from both Americas. However, it is not only about purely business cooperation and ventures. We have also in mind local-government and inter-university projects, cooperation in the development and pm

The COP Cluster

a unique formation in the Polish economic reality Jacek Kopyra, Vice-President of the COP (Central Industrial District) Cluster, talks to “Polish Market”.

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Polish Innovation Congress implementation of new technologies, organisation of logistics zones, and many others, including financing, implication of North and South American operators. But our proposal goes even further. We aim to sign relevant agreements and letters of intent containing specific schedules in terms of organisation of large projects that can be attended both by members of the cluster and local governments forming a regional development network across the former Central Industrial District area, implementing joint ventures with partners from the other side of the Atlantic. We are open to ideas and suggestions of local communities - municipalities, counties, provinces. Our initiative is directed to the marshals of all the provinces situated within the former Central Industrial District, but not only, as we have invited the authorities of the provinces of Wielkopolskie, Śląskie, Dolnośląskie, Lubuskie and Pomorskie. That is why the presence at the congress of the highest State and local authorities, as well as universities is so important. We hope that our initiative will be noticed and appreciated at a national level. The cake is very big so we cannot eat it all by ourselves. We will be happy to share it with those who see their place at our side, fulfilling our vision of cooperation for the benefit of the country. We laid our cards on the table when meeting with ministerial officials responsible for economic development and a coherent development policy. The initiative met with a friendly reception, understanding and ardent interest. We were promised support and cooperation wherever possible. In one sentence, the idea of the congress is to inaugurate the path of cooperation offered by the COP Cluster, in agreement with its partners from the United States and Latin America, to Polish businesses, local governments and R&D bodies. The theme of the congress indicates the geographical direction where you see the greatest opportunities for cooperation. Why the United States? Why America? It is very simple. But let us start with considering other directions... Before we moved on to building relationships in America, we were looking at Russia. Our cluster was involved in creating the economic foundation tasked with implementing large economic projects in cooperation with Russian business, with the support of local government and State authorities. Unfortunately, due to the political situation in the East, the project will probably remain in the planning stage... Asia? Cultural barriers, sometimes very difficult to overcome for Polish entrepreneurs, risks inherent in cooperation with Chinese and Indian producers, finally logistical issues hard to accommodate by relatively small operators from pm

Poland, even if grouped in clusters focused on cooperation at large. Middle East - too risky... Africa? An environment where Poland has no record of economic cooperation, some Maghreb countries set aside. Africa is a continent dominated by Chinese, US and global corporations, where competition is rife among huge players that receive adequate funding and political support from their governments, which make every effort to protect their economic interests, especially in countries with a high risk of instability. It is also a continent engulfed by Islamic fundamentalism, the fast-growing ISIS, and local conflicts that are likely to pose a major business thereat at any moment. Against this background, North America is completely different with the world’s most powerful economy, market potential, influential Polish diaspora well-established in US business circles and, through Miami’s contacts, in the whole business community in Central America and South America. Thus, America... And rather South America, with the focus on markets hardly recognised by Polish companies, but offering an incomparably greater potential than Russia and Ukraine did before the military conflict. What can the COP Cluster be proud of? How do you combine the tradition of the Central Industrial District with innovations that underlie the very idea of clusters? The COP Cluster is a unique cluster formation in the Polish economic reality which, through its multi-disciplinary structure, makes it possible to multiply the potential and growth dynamics of businesses. Thanks to the dynamism of the most resilient local governments in the former COP area, now members of the cluster, it may have a significant impact on the development of individual regions, which is what determines effectiveness of the cluster. In this respect, the COP Cluster is also an interesting example of a cluster organisation, which is primarily focused on measurable economic projects, bringing a certain profit to all involved. It promotes multidimensional, transversal and interregional cooperation. At present, the COP Cluster is involved in several large projects, which are worth billions of zlotys and will be implemented over the next several years. The projects are related to infrastructure, industry, regional energy economy and logistics. These projects involve an extremely high degree of complexity, requiring a perfect understanding of investment management, financial engineering, law, as well as determination and consistency in decision making in difficult economic conditions, with a rigid regulatory framework, and overwhelming red tape. pm

We laid our cards on the table when meeting with ministerial officials responsible for economic development and a coherent development policy. However, thanks to our management experience and extensive cooperation within the cluster, it is possible to implement such challenges bringing together a variety of agents: planners, executors, financial institutions as well as local governments, R&D units, universities and other semi-business organisations. Such projects involve developing a zoning plan, preparing land as required, conducting public procurement procedures as part of managing the contractor’s duties, supervising the construction, transfer, installation and start-up. Notwithstanding the above, the COP Cluster is working towards its own institute of technology deployments, developed by innovators-entrepreneurs, whose technological advancement puts us among the world’s leaders. Names associated with the COP Cluster will soon ennoble the Polish technical thought and the former Central Industrial District, built in 1936-1939 on the initiative of the leading figures of Poland’s prewar economy, will be revived as a synonym of good business practices. As a testament to its historical heritage the Cluster has established the “COP Medal by E. Kwiatkowski”, which rewards outstanding individuals or organisations for efforts for the development of Polish innovation, and whose activity leaves a lasting mark on the Polish economy and Poland’s position in the world. Another example of the cluster’s contribution to documenting its heritage is publishing the full biography of Eugeniusz Kwiatkowski, Deputy Prime Minister and Minister of the Treasury in 1935-1939, the founding father of the city of Gdynia and the Central Industrial District (COP). The inspiration came from the COP Cluster. The book was published by the Radom Institute for Sustainable Technologies as a result of meticulous work of Prof. Andrzej Romanowski, helped by Kwiatkowski’s family. Many materials used in the publication come from the private collection of Jan Banaszak, Vice-President of the COP Cluster, the son of a close collabo• rator of Eugeniusz Kwiatkowski.

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Polish Innovation Congress

Finally

Coming Back

to the Polish Market Alma Kadragic, Director Media & Business Development, Polish American Chamber of Commerce of Florida & the Americas, Inc.; President, Alcat Communications Int’l LLC

uring 20 years - from 1983 to 2003 - I spent more time in Poland than any other country. From June 1983 when I arrived to cover the visit of Pope John Paul II for ABC News until the beginning of 1990 when I left ABC, I witnessed the struggle against Soviet and domestic communism in Poland, Hungary, Czechoslovakia, East Germany, Romania, and Yugoslavia. When I decided to start my own company in Warsaw in early 1990, it was to help American companies get into or back into the Polish market. What I thought would be a consulting firm developed into a PR and marketing agency because that’s what the big companies from American Express – my first client – to Citibank, Dell, General Motors, Levi Strauss, Sheraton, and Westinghouse among many others required at the time. Meanwhile, in Poland and back in the U.S., I talked about opportunities for doing business in Poland. It was easier to convince foreign companies – American, German, Swedish, and French – about the importance of the economic changes taking place in Poland than it was to convince Poles in their own country. Although I am not Polish – my parents were from Bosnia and Croatia in the former Yugoslavia – I grew up speaking a Slavic language along with French and English, typical of immigrants who learn the language wherever they are. So it wasn’t difficult to adjust to Polish. It took me about six months to understand everything that people said and to communicate reasonably well in Polish. Maybe because I’m not ethnically Polish, I have been able to look at Poland sympathetically and critically. From the first days of the Mazowiecki government in 1990, I was asking the officials I knew, why don’t you tell the world about what Poland is? Many had been Solidarity activists whom I had interviewed for ABC News. Once in charge of sections or ministries, they were full or excuses or didn’t understand what I was trying to say. Promoting Poland is what they should have been doing, telling the story, explaining the problems, but also giving an idea of what the future could look like. Yes, the problems

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were huge; however, the positive was not mentioned, and everything seemed buried under layers of tragedy. Why? I would ask. The answer was always some version of “nie wypada”. It’s not right that we talk about ourselves. Look at the problems we have. We have to solve them before we can say anything. Once when I returned from a trip to Czechoslovakia, I told a Polish friend about the castles I had seen. In fact, I brought back a book of Czech castles that a tourist could use as a guide to travel through the country. My Polish friend said, we have castles too. Well, why not do something similar so that tourists would know where to find them, I asked. Oh, no, she replied, our castles aren’t in good repair. We have to fix them up first before we can invite visitors. Over the years I made various attempts to promote Poland. My company won a tender from the European Commission in the early 1990s to make short films about the glass, cement, and beer industries which the government was trying to privatize. We also worked with The Economist to organize three conferences with the Government of Poland to promote investment. However, I was never able to convince any official that more should and could be done to tell the story of the potential of Poland to the world outside, the world where “nie wypada” was unknown. I sold my company in 2003, left Poland, and didn’t return until 2011. Two years later, I was invited to the Presidential Palace to receive the Officer’s Cross for Service for my work as a journalist in the 1980s. The ceremony was on June 4, 2013, 24 years after the first free elections in 1989. It was a glorious visit, but I still didn’t find any new initiatives to bring Poland forward, to receive credit for its economic achievements and potential. That’s why when I met Leszek Ladowski in Miami last year and learned about the Florida Gateway to the Americas and Poland Gateway to Central and Eastern Europe, I was delighted and eager to join the Florida Trade Mission to Poland, April 15-18. Perhaps the moment when the advantages of doing business with Poland would become known in Poland and the • world outside has finally arrived.

Polish Innovation Congress

FLORIDA POLAND

GATEWAY TO THE AMERICAS, GATEWAY TO CENTRAL & EASTERN EUROPE Leszek Ladowski

hen I left Poland in January 1979 for a one-week vacation to Sweden, I never imagined that the trip would take more than 35 years. After a few months in Sweden, I went to Venezuela. At that time the country was an example of democracy and prosperity in Latin America. Always on one side was the work I did to earn a living. In Venezuela I learned about business from a man from Poland who owned a shoe factory. In a short time, I became his partner. On the other side was my work in the Polish expatriate community. Between 1980 and 1982 I co-founded and served as vice president of the Hermandad Polaca (Polish Brotherhood) and organized events to celebrate Polish holidays for the Polish Club in Caracas. In 1980 at the height of Solidarity, we hosted Lech Walesa in Caracas. In 1986 we had the honor of welcoming Pope John Paul II to Venezuela and Walesa again in 1989. In 1987 in Caracas I founded a company that imported and exported leather for the furniture industry. Soon we opened offices in Colombia and Mexico. I traveled extensively to Uruguay, Argentina, Brazil, Colombia, Mexico, Panama, and Puerto Rico as well as Italy buying and selling leather. In order to better serve our clients, we started working with a bank in Miami. I realized then how important Miami is for business between the Americas and its growing importance as a global logistics and distribution center. I met my wife Jadwiga when she came to Caracas in 1982 from the Zamojskie region to visit her aunt. We have four children Anna, Paulina and Dawid born in Caracas and

Carolina born in Miami. In 1992 we decided to move the business and our family to Miami. I became active in the Polish American Chamber of Commerce of Florida and the Americas, which was founded in 1992. This is the oldest such organization in the United States. After being Vice President for the last few years, I now have the honor to serve as President. We start working with bi-national chambers and business organizations – Association of Bi-National Chambers of Commerce (ABiCC), Florida Foreign Trade Association (FFTA) and Latin American Chambers of Commerce (CAMACOL). In 2015 CAMACOL is celebrating its 50th Anniversary. Each year they organize the Hemispheric Congress in Miami in June for their members from 22 Latin American countries and the U.S. Also once a year they hold the CAMACOL Congress in a member country. Last year in Puerto Rico, our chamber representing Poland was accepted as a member of CAMACOL, and I was admitted as a Director of the Permanent Secretariat. In April 2014, I founded and became President of the Polish Trade Center Corp. (PTC) in Miami. The goal of Polish Trade Center is to provide a service platform for companies from Poland and Central Europe that would like to expand their business in the United States, Central and South America and the Caribbean by taking advantage of the connectivity, logistics and development offered by the city of Miami and the state of Florida. We are focusing first on several key industries where we find synergies between Polish and South American companies. These industries include innovation and high technology; e-health and healthcare; banking and

finance; education; food and beverage; perishables; renewable energy; and hospitality. In some cases production is in Europe (Poland and countries to the east); in other cases, it is in South America or the U.S. PTC will facilitate trade by investing, adding management knowhow, facilitating commercialization, and, in general, through our team of expert directors, providing whatever might be required for successful business to develop. This is the thinking behind what we call: FLORIDA – GATEWAY TO THE AMERICAS AND POLAND – GATEWAY TO CENTRAL AND EASTERN EUROPE. I should add that my work has been recognized by Poland and South America. On May 17, 2012 I received the Cavalry Cross for Service from President Bronislaw Komorowski. In June 2014 I received the Sanchez to Sanchez to Smith Award from President Mario Guttierez of CAMACOL and Chairman Wifredo Gort of the CAMACOL Hemispheric Congress. When we arrive in Warsaw on April 15, our delegation led by Manny Mencia of Enterprise Florida – the international trade development agency of the Florida State Government – will be meeting with several county governors and city mayors to urge them to find local companies that are ready to expand their business internationally with us. In Warsaw we will announce that the next CAMACOL Congress will take place in October 2016 . . . in Poland. We plan to bring at least 100 business people from South America to Poland to see for themselves what Poland can offer and how much it has achieved since 1990. When Poland starts growing business in the Americas, it will become a stronger player in European Union. •

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Agriculture

We train professionals for

the Polish economy Prof. Alojzy Szymański, Rector of the Warsaw University of Life Sciences (SGGW), talks to “Polish Market”. SGGW is a university with a long tradition. How has it changed over the years? SGGW is Poland’s oldest higher education institution oriented to life sciences. Its history dates back to 1816 when the Institute of Agronomy was established in Marymont, outside Warsaw. The Department of Veterinary Medicine at SGGW has pm

its origins in the veterinary school, founded on 17 July 1824, under the name Governmental Institute of Veterinary Medicine in Buraków near Warsaw. In 2016, a bicentenary will have passed since the Institute of Agronomy started its education mission at two levels: higher - for future managers and sons of landowners, and elementary - for future qualified workers. The Institute of Agronomy in Marymont grew out of the Staszic legacy, namely in connection with a great activity of the Polish landed gentry. It was created when agricultural teaching was still in its infancy. Marymont was the fourth school of this type in Europe. The beginnings were modest. But it was a remarkable leaven, which stimulated minds and souls for decades and which that scientific thought and Polish agricultural education develop under the period of partitions. As a result, more institutions and forms of agricultural education emerged in the 19th and 20th centuries, eventually leading to the creation of SGGW in 1919. Between 1816 and 1830, the university had 122 students, in 1918 – 460, in 1939 – 1,400 and currently – 27,000 undergraduate, graduate and PhD students. Rankings and popularity surveys indicate that SGGW is one of the most recognisable brands on the education and science market. What does your university owe its success to? SGGW as it is today is the result of work, enthusiasm and wisdom of thousands of research fellows and 120,000 graduates. There are many sources of success and recognition: high quality of education, professional staff, internationally recognisable and renowned diploma. Not without significance is the care for students in terms of self-fulfilment through scientific circles, dance and music ensembles, sports sections. We help our students shape their skills thoroughly. The Warsaw University of Life Sciences offers 37 curricula to 27 ,000 BSc, MSc and PhD students. Graduates are granted a professional title of engineer, both bachelor’s and master’s. SGGW also offers a wide range of post-graduate studies. For many years, it has been on the list of the best Polish universities. Every year, it is awarded the titles: “Poland’s most innovative and creative university in terms of career prospects,” “Good university, good work,” and “A student-friendly university.” It is worth noting that, according to the Ministry of Science and Higher Education, the Warsaw University of Life Sciences always ranks high in popularity rankings. Our graduates are satisfied with the choice they have made entering SGGW. pm

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Agriculture The vast majority of them - after graduation - declare that they would have made the same choice for both the university and the curriculum. The popularity of SGGW stems both from excellent facilities as well as a wide range of courses we are trying to adapt to the job market and interests of young people. It is also the result of a student-friendly atmosphere we have managed to create in SGGW, where each student can count on understanding and support from the teaching and administrative staff. Our achievements testify to the fact that we are going in the right direction. What makes SGGW an innovative research unit cooperating with business? This is one of our priorities. SGGW is a university of applied sciences. Research cannot be done without modern labs and equipment. Therefore, all our efforts are focused on building modern labs in individual departments. For this purpose, structural funds are effectively used from central programmes, but also from the Mazowieckie province regional programme and EU framework programmes. For nearly seven years in my tenure as Rector of SGGW I have supported and encouraged academic staff to set up new research teams, create PhD studies and carry out research so as to allow their results to be translated into practical solutions used in the economy. The development of research teams and labs is important because it makes it possible to put research results into practice. A specific example of such an approach was the establishment of the Centre for Innovation and Technology Transfer, which oversees and coordinates the cooperation of SGGW’s individual departments with Poland’s national economy units. We work with many companies in the field of food industry, environmental engineering, veterinary medicine and economics. We also create clusters bringing together banks and food producers. pm

Do innovation and cooperation with business increase your graduates’ chances on the job market? Yes. The transfer of research results to the economy is crucial for innovation to become a reality. New solutions developed by SGGW are applied by external agents we cooperate with, thus modernising industry and agriculture. On the other hand, we get feedback on how to educate students to better match the needs of the job market. Practical tips from businesses are extremely valuable for the development of curricula. Often these very businesses employ our graduates expecting them to have specific qualifications. We are expanding our teaching offer to include specialties not directly associated with agriculture, because such are the needs of non-urbanised areas, where most of our graduates come from. And we do our best so they have the greatest possible chances of finding employment in their profession. The necessity to amend curricula in higher education is a consequence of the times we live in. It is a response to the constantly changing life conditions and challenges faced by graduates on the job market. But the modification of teaching programmes comes also as a consequence of the increasingly high expectations of students themselves. They are aware of the fact that with a wider range of education it will be easier for them to live up to the demands of the job market and to become attractive for potential employers. We try to prepare our students for their future careers also as young entrepreneurs trustfully take up new initiatives and create jobs both • for themselves and for others. pm

Prof. Alojzy Szymański, Rector of SGGW, graduated from the Department of Land Reclamation at the Warsaw University of Life Sciences (SGGW) in 1974. He obtained a PhD degree in Technical Sciences in 1982 and habilitation (postdoctoral degree) from the Department of Hydraulic Engineering at the Gdańsk University of Technology in 1992. Alojzy Szymański was given the title of professor of technical sciences in 2004. Since 1994, he was employed as associate professor and since 2006 as full professor in the Department of Geoengineering, SGGW. In 19992002, he served as Dean of the Department of Engineering and Environmental Protection, and in 2008 he was appointed Rector of the Warsaw University of Life Sciences. He is President of the Conference of Rectors of Agricultural and Natural Sciences Universities, a Board Member of the Conference of Rectors of Polish Academic Schools and the Vice-Chairman of the Conference of Warsaw Universities’ Rectors. Since June 2014, he has been the President of the Polish Committee of Geotechnic al Engineering. The total scientific output of Prof. Alojzy Szymański covers 240 items, including 140 papers published. The scope of his scientific research spans the following subjects: - development of methods for soft soils deformation course modelling with the use of the soft soil reinforcement phenomenon, - improvement of the research methodology and selection of the parameters for the calculation of hydraulic and earth structures subsidence, - development of the technical condition of hydraulic structures assessing and monitoring methods, - improvement of the ground geological structure identification methodology with the use of “in situ” tests to determine the soil parameters required in civil and underground construction. Prof. Alojzy Szymański has won numerous awards and honours. In February 2015, he received the Bishop Roman Andrzejewski Prize, awarded in recognition of merits of those working for the cultural and economic development of rural communities. 4/2015 polish market

Agriculture

We are all beneficiaries of the Common

Agricultural Policy “The Agency for the Restructuring and Modernization of Agriculture is the largest institution of its kind in the European Union. Italy, for instance, has several regional agencies. The reason why a single institution able to quickly start absorbing EU funding was set up in Poland is that when we began implementing EU pre-accession programmes it was necessary to create a system ensuring the secure management of public money. There was no time for experimenting,” Andrzej Gross, President of the Agency for the Restructuring and Modernization of Agriculture (ARiMR), tells Jerzy Bojanowicz. In 2014, the Agency celebrated its 20th anniversary and the 10th anniversary of Poland’s entry to the European Union. Now is a good time for summing up. The first decade of our presence in the EU can certainly be regarded as a crucial period for the whole agri-food sector and the development of rural areas. These years were truly revolutionary in terms of agricultural equipment replacement, technological progress and growth in the potential of food-processing plants. The best proof is the unprecedented rise in agricultural exports. At the same time, the image of the countryside also changed. Of course, Poland is a country of great diversity, which is a result of our geographical, environmental and historical conditions. However, the changes are so well visible that one can hardly ignore them and say that nothing has changed. Until quite recently people living in rural areas migrated to cities but now, for the first time ever, we are seeing a reverse trend. Measures taken to create jobs in rural areas and develop services – not only those intended for farmers but also other rural residents – have contributed to this change. At present, farmers account for only 12% of the Polish population, with agriculture being the main source of livelihood for less than 8%. In rural areas, farmers now make up less than 30% of the population. Work in rural areas, including in non-agricultural jobs, is becoming increasingly attractive. And the new residents mean new needs. pm

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What was the impact of the funding distributed by the Agency on Polish agriculture and food-processing? It was definitely significant. The largest ever stream of money flew to the countryside under the numerous programmes partially funded by the EU: the pre-accession SAPARD programme, followed by the Sectoral Operational Programme Restructuring and Modernization of the Food Sector and the Development of Rural Areas 2004-2006, the Rural Development Plan 2004-2006 and, especially, the Rural Development Programme 2007-2013. In the years 1994-2014, the Agency paid out PLN223.5 billion, including PLN203.3 billion under programmes partially funded by the European Union. PLN12.47 billion of the latter amount was paid out in 1994-2003, that is before Poland’s entry to the EU. The largest number of applications for payments is filed with the Agency in agricultural provinces, like Wielkopolskie, Kujawsko-Pomorskie and Podlaskie. These disparities, due to geographical location and agrarian structure, have an impact on the size of investment. pm

EUR13.5 billion is available for investment of various kind under the new Rural Development Programme for the years 2014-2020. A considerable part of the money is designated for the development of agriculture. But will producers be still ready to invest, given the present situation on the market

and problems with selling many agricultural products? Looking back at the past years, I have no doubt that there will be many people eager to use the subsidies. For the first time, two coherent instruments have been prepared: a new direct payment scheme and the Rural Development Programme for 2014-2020. They are oriented at active farmers. Such farmers will want to develop their farms and to do so they need financial support. Enhancing the competitiveness of the agricultural sector, with a special focus on environmental objectives, is the main priority of the Rural Development Programme for 2014-2020. The programme will be supporting the restructuring and modernization of farms and the development of agri-food processing. Measures have been planned to support the modernization of economically weaker family farms so as to enhance their competitiveness and ensure financial stability. Measures will also be taken to support job creation in rural areas, and to stimulate economic activity and support the development of utility and social infrastructure in these areas. I hope that this activity will not only enable the countryside to develop in a sustainable manner, but will also provide further effective support to the process of agricultural restructuring and modernization. pm

Why are the billions of euros being channelled to the agricultural sector rather than elsewhere?

Agriculture I often hear this question. Let me remind you that Europe once had problems with food self-sufficiency. The result was higher food prices and the need to import food. In order to prevent this, the Common Agricultural Policy was established under the Treaty of Rome of 1957. It was officially launched in 1962. Food security, the protection of the natural environment, meaning the resources which the sector has at its disposal, and – last but not least – efforts designed to keep food prices at a secure level acceptable to the consumer, are the main goals of this policy because food availability is very important. So in fact, all consumers are beneficiaries of the Common Agricultural Policy. This is why agriculture and agri-food processing are subsidized throughout the EU. In Poland the purpose of all the support available in the form of programmes, measures and area payments is to pursue the goals of CAP, but also to make us competitive and consequently self-sufficient. It is evident that the prediction made before our EU entry that Poland would fail to exploit its opportunity and absorb the money available to it have not come true. Even the harshest critics cannot say that farmers “frittered the money away.” Which projects carried out under the Rural Development Programme for 2007-2013 are you particularly proud of? Investment measures, designed to modernize farms and agri-food processing plants, enjoyed the biggest popularity. But what set Poland apart from other EU countries was support for young farmers. These measures, combined with the early retirement scheme for farmers, enabled generational replacement in the countryside. At present, we have more young farmers than any other country in the EU. In turn, financial support for the agri-food sector resulted in an almost six-fold increase in agrifood exports compared to 2004. This would not have been possible without the introduction of modern techniques and technologies, and specialist knowledge.

Fishing Areas for 2007-2013. Shouldn’t we start thinking about the 2014-2020 period? After the end of a financial period, we make a balance sheet. The absorption of funding under the Rural Development Programme accounts for 100%. It was not easy to achieve this ratio, but Poland is a country where those who take part in this programme want to invest. There is no risk in the fisheries sector. Thanks to this programme, Poland is one of the largest fish processors in the EU. It is worth mentioning the reintroduction of the sturgeon and the expansion of carp and trout farming. As regards the 2014-2020 financial period, we rank fourth in the European Union in terms of the amount of money allocated for the fisheries policy after Spain, France and Italy. The new operational programme, entitled Fisheries and the Sea, has several priorities. More than EUR700 million has been set aside for its implementation from EU and national sources. The fish market, control and enforcement, data collection and integrated maritime policy are the programme’s new components. Support will go to sectors creating jobs based on new production technologies. Scientific achievements will be playing a big role in the development of this sector of the economy.

What does the support provided by the Agency from national sources consist of? The scope of support from national sources is very broad. It includes repaying some of the interest on bank loans taken by farmers for investment or to deal with crop failure, guaranteeing the repayment of such loans, repaying student loans and covering the costs associated with the destruction of dead farm animals. pm

I was surprised to see an announcement by the Agency’s president about the opportunity to file applications for funding under the Operational Programme Sustainable Development of the Fisheries Sector and Coastal

will be receiving direct payments by 25% higher than other farmers. This is expected to further accelerate the process of generational replacement in the countryside. For the first time, semi-subsistence family farms may count on support from the Rural Development Programme. The farmers are offered money for the restructuring of small farms in the form of limited subsidies for the purchase of beef and dairy cattle, sheep and goats. The subsidies should stimulate the activity of small and medium farms because they encourage milk and meat production. Entrepreneurs are offered support in processing and marketing of agricultural products, the development of enterprise and cooperation within EIP operational groups. Local governments benefit mainly from Regional Operational Programmes, which provide money for financing healthcare, education, infrastructure and so on. In turn, under the Rural Development Programme money is available for everything that concerns local communities: rural renewal, cultural and culinary heritage, and water management, including agricultural drainage and flood control (construction and maintenance of flood embankments). How competitive, in your view, are our farmers? They are among the leading producers of milk, apples, mushrooms, poultry and soft fruit in the EU. We have a good reason to be proud. Polish food is known in the world for its high quality. We have an enormous potential and only need to develop it. I also stress on many occasions that it is necessary for farmers to form producer groups to gain a stronger position on the EU market. The measures already taken to consolidate agricultural producers prove that organizations with a strong position on the market generate benefits not only for agriculture but also for society as a whole. This is why the Rural Development Programme for 20142020 includes measures designed as a continuation of support for setting up producer groups. pm

Farmers, rural residents, entrepreneurs and local governments are the main beneficiaries of the activities pursued by the Agency. What can they count on? We will continue to enhance the competitiveness of Polish agriculture. Support will be given to local governments, with funding for basic services, rural renewal schemes, land consolidation, the modernization of farms and investment, and environmental protection. There will be more focus on innovation in the manufacturing and processing sector. We will also be supporting the development of civil society in the countryside through the LEADER programme. Rural residents are becoming more active, there are new social initiatives and thriving local action groups, which set up non-governmental organizations. We will provide funding to 256 local action groups from our new budget. Each will be given a specific amount of money and will have the right to decide independently – on the basis of the development plans for their village or rural district - what projects to support. It is a lesson in taking decisions in people’s interest. The most important difference between the past and present financial period is in area payments. In 2014-2020, more support will be given to small and medium farms, which represent 70% of Polish agriculture. A new instrument is additional support offered to young farmers, apart from payments for starting up farming activity. Now, for five years young farmers pm

What challenges is the Agency facing now? We have learnt quickly to construct programmes and effectively implement them. We carried out the Rural Development Programme for 2007-2013 faster than any other country in the EU. We have experience and are well prepared to operate. We are an institution friendly to beneficiaries. The operation of the Agency will not change in coming years as its main objective will still be absorbing the EU money allocated to Poland and checking whether it has been spent • properly because this is public money. pm

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Agriculture

CNH Industrial is helping modernise Polish agriculture and leading from the front

New Holland Agriculture, a brand of CNH Industrial, has created ‘The Sustainable Farm’ pavilion at Expo 2015

Derek Neilson, Chief Operating Office EMEA for CNH Industrial, talks to “Polish Market”. You are one of the largest suppliers of agricultural machinery in the Polish market. Do you think there is still room for development? CNH Industrial is, in fact, the market leader in Poland through our three agricultural brands, Case IH, Steyr and New Holland Agriculture. Even though the Polish agricultural market has undergone rapid development following its accession to the European Union in 2004, there is definitely still scope for expansion. There is a growing desire amongst the country’s farmers to continue to modernise their machinery fleets and there is considerable scope for this, as estimates show there are some one million tractors and a significant number of combines which are ripe for renewal. Today’s farmers and agribusinesses are demanding ever more advanced products in order to improve productivity and to compete with their western European counterparts, which is a key driver in the expansion of advanced precision farming technologies. Case IH has embarked upon an ambitious programme to deliver 100% RTK coverage, (RTK is a GPS correction signal which provides users with a +/2.5cm level of accuracy) for rural areas by the end of 2015. Farmers use GPS technology to plot a route they will follow in the field to optimise coverage. pm

22 polish market

In your option, what are the main challenges in the Polish market? The Polish market offers many opportunities but it also has to face some very specific challenges. Firstly, the uncertainty surrounding EU subsidy payments, which could be considered a key driver in machinery fleet replacement and modernisation, is generating some concerns in the market. Another challenge, which is predominantly impacting the eastern part of the country, is related to the recent implementation of Russian trade import measures regarding certain agricultural and food products. As a consequence, in some regions the drop in trade is impacting farm incomes and the willingness to invest in agricultural equipment. pm

Can you meet the needs of the market which such a broad range of products? CNH Industrial, through Case IH, Steyr and New Holland Agriculture offer a complete range of agricultural equipment in Poland, from tractors through to combines and hay and forage equipment, and as I said before, our number one position in the market is thanks to this complete line-up. The country’s combine market is highly specialised, being characterised by a short 2-3 week harvesting pm

Agriculture window. Case IH’s high capacity Axial-Flow 140 and 240 series are perfect for large scale professional farmers. New Holland’s TC combine, which is the only combine harvester to be produced in Poland, is the clear market leader with a 50% share and the growing round baler segment is providing opportunities for further expansion. When manufacturing such advanced machines, it is important to be innovative. Do you cooperate with R&D units? Of course! Research and Development functions are fully integrated with Product Development teams, and they are at the heart of new development. We have over 6,100 individuals within CNH Industrial who are focussed on innovation activities and are dedicated to ensuring the latest productivity enhancing technological advances are introduced to our products in a timely manner. A good example of this is the New Holland grape harvester, which was adapted for use with blackcurrants specifically for the Polish market. pm

Has Poland’s accession to the European Union and rural development programmes clearly resulted in increasing Polish farmers’ interest in your products? There has always been significant interest in our products, even before Poland’s accession to the EU, in part stemming from our historical roots with the Bizon brand, which was acquired by New Holland in 1998. Since Poland has been an EU member, this has undoubtedly increased the strength of the agricultural sector, not only stimulating the renewal of machinery fleets, but also increasing the draw of agriculture as a career. This professionalization of the industry has seen customers looking for state-of-the-art products and Polish agribusinesses are keen to implement solutions which follow Western European and American trends, which chimes perfectly with Case IH’s reputation as the specialist in professional broad acre farming. pm

How important is being a global sponsor of Expo 2015? CNH Industrial, together with its sister company FCA (Fiat Chrysler Automobiles), is proud to be an Official Global Partner of Expo Milano 2015. The Expo’s theme of ‘Feeding the Planet, Energy for Life’ is of particular relevance to CNH Industrial. New Holland Agriculture has built ‘The Sustainable Farm Pavilion’, which showcases the brand’s commitment to sustainable agricultural solutions. Furthermore, we are keen to ensure the general public understand the important role that agriculture and farm machinery has to play in the food chain: our products are fundamental in ensuring food security. We are also a sponsor of the US pavilion ‘American Food 2.0’ where both Case IH and construction brand CASE Construction Equipment will be showcased. A fleet of Iveco and Iveco Bus natural gas vehicles, which are already able to run on biomethane, one source of which is agricultural waste, will be used for logistic and transport purposes. FPT Industrial, CNH Industrial’s powertrain brand, will display its Cursor 16 engine • in the New Holland pavilion. pm

Research and Development functions are fully integrated with Product Development teams, and they are at the heart of new development. Derek Neilson Derek Neilson is the Chief Operating Officer for CNH Industrial for the EMEA (Europe, Middle East and Africa) region alongside his role as President Commercial Vehicles Products Segment and that of Chairman of CNH Industrial Polska. During his long career with the Company Mr Neilson has gained vast experience in the manufacturing segment, and held the role of Chief Manufacturing Officer for some three years. About CNH Industrial CNH Industrial N.V. is a global leader in the capital goods sector with established industrial experience, a wide range of products and a worldwide presence. Each of the individual brands belonging to the Company is a major international force in its specific industrial sector: Case IH, New Holland Agriculture and Steyr for tractors and agricultural machinery; Case and New Holland Construction for earth moving equipment; Iveco for commercial vehicles; Iveco Bus and Heuliez Bus for buses and coaches; Iveco Astra for quarry and construction vehicles; Magirus for firefighting vehicles; Iveco Defence Vehicles for defence and civil protection; and FPT Industrial for engines and transmissions. More information can be found on the corporate website: www.cnhindustrial.com.

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Agriculture

The Legend

returns

Karol Zarajczyk, President of the Board of Ursus SA Ursus will be present at the Expo in Italy. What are the main products you intend to promote? At the fair in Italy, we will promote all our products, tractors and farm machinery, but we suppose the hit will be the retrofitted legendary Ursus C-series, including the much awaited C-360 model. It is worth noting that almost half of 1.5 million tractors currently in use in Poland are branded Ursus. The legendary C-series tractors, especially the C-360 model, still dominate is Poland. The new models of tractors we now put on the market are technologically designed and priced to meet the expectations of Polish farmers. Low maintenance costs are an additional asset of the C-series models. On foreign markets too, Ursus is synonymous with a very good and reliable product that farmers can use for long years. With its export potential, it may soon be one of the top Polish export goods. Ursus is the oldest Polish national brand that enjoys a global reputation. The return of the legendary C-series tractors is the next step towards rebuilding the power of Ursus, not only domestically but also abroad. pm

A new C-series is your pride. What makes it so special? Ursus’s C-series models, which span a power bracket of 50 to 102 hp, are the most popular tractors in the highest sales segment, dedicated to small and medium-sized farms and to the forestry, construction and utilities. By appearance, the new models resemble the legendary tractors. The Ursus tractors are not packed with electronics as opposed to competitors’. Electronics is used exclusively in motor and drive systems. This is a major asset for users who appreciate maintenance simplicity. Our tractors meet all EU requirements at a competitive price. Importantly, the whole family of C-models was designed and made from beginning to end by Polish engineers in the Ursus R&D research pm

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centre in Lublin. It is worth boasting of the Polish know-how at the Expo. Many EU farmers know very well the brand Ursus. What are the company’s priorities? Are you focused on exports or domestic sales? With 120 years of tradition, Ursus is obliged to further develop. We want to harness the leverage of the brand and the potential of Polish engineers and designers to create in Lublin a modern research and production centre to restore the tradition of the Polish automotive industry dating back to the pre-war times. Last year the company spent approx. PLN 17 million for further development, this year we are planning investments worth another PLN 24 million, including in equipment for the plant in Lublin, one of our three manufacturing facilities. We are also about to finish the expansion of the Ursus R&D lab, which works with engineers from the Lublin University of Technology and the Military Technical Academy in Warsaw on a prototype of an electric city bus ordered by the municipal transport company in Lublin. Manufacturing of trolleybuses and electric buses is a means to diversify our product offerings and a chance to branch into a new attractive market. In fact, substantial funds under the new EU budget will be directed at retrofitting the municipal fleet in the whole of Europe. Since 2014 the company has been focused on expansion into countries such as the Czech Republic, Slovakia, Hungary, Belgium, the Netherlands, Slovenia, Croatia, as well as into Scandinavia and eastern markets. Last year saw the performance of the major contract with the Ethiopian company METEC for the delivery of 3,000 tractors. The Ethiopian contract is a key project for Ursus, because it creates great opportunities for the company’s further development in Africa, where Polish tractors successfully compete with foreign ones. The contract was won due to the government programme pm

“Go Africa” aimed at promoting Polish companies in Africa. Its signing was preceded by a bilateral agreement between the governments of Poland and Ethiopia. It is economically important that the Polish government decided to promote companies such as Ursus – the oldest Polish brand, which we are consistently developing. Our products have been very highly rated by the Ethiopian partner, and we can see METEC’s determination to cooperate in the implementation of the second phase of the contract. The project also receives support from the Ethiopian government, which appreciates the benefits of cooperation with Ursus. Therefore, we hope that the Polish government will provide credit for the implementation of the second phase of the Ethiopian contract. Sales success in that African country opens up ample opportunities on other prospective markets across the whole continent. The local demand for our products is sufficient to guarantee profits for the next 2-3 years. This contract is a chance for the company to rebuild the brand Ursus, and thus for the whole automotive industry in Poland. What is the specificity of the Polish market? Are EU cash inflows still felt by Polish farmers? Since 2004 Poland has been a beneficiary of EU subsidies, a large part of which goes to agricultural machinery, thus stimulating farmers’ purchasing decisions. An efficient system of subsidies will support further development of this segment. Using funding from the Rural Development Programme, from 2007 to mid2011, farmers bought 278.5 thousand pieces of agricultural equipment, including 19.5 thousand tractors. The total public spending allocated to the Rural Development Programme for 20142020 will amount to EUR 13.5 billion, of which EUR 8.5 billion will come from EU funds (EAFRD) and almost EUR 5 billion from the State • budget. pm

Agrol P.P.H. Sp. z o.o. launched its operations in 1996. Our products are made using specially selected grains of top quality corn. The company’s core operations are based on its own groats-processing plant equipped with state-of- the-arts machinery. Thanks to the first-rate quality of our products and individual service offered to our trade partners, we have become the leader on the Polish market of cereals, rice, groats, peas and beans. We are also selling fresh fruits and vegetables. Since 2003, we have enforced the HACCP food safety management system which guarantees high quality of products offered for sale. We are the laureate, among others, of the Export Leader Award received in 2005 from the Province Business Forum under the patronage of the Mazowieckie province Chairman. We have also won the Polish Food Producer Certificate.

Products offered by AGROL promote healthy lifestyle, are widely used in dietetics and support weight loss.

AGROL

Przedsiębiorstwo Produkcyjno‑Handlowe Spółka z o.o. 09-140 Raciąż, Płocka 53 tel.+48 23 679 10 10, +48 23 679 18 55 tel./fax +48 23 679 11 18 www.agrol.eu sklep.agrol.eu

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Europejski Fundusz Rolny na rzecz Rozwoju Obszarów Wiejskich „Europejski Fundusz Rolny na rzecz Rozwoju Obszarów Wiejskich: Europa inwestująca w obszary wiejskie” Publikacja opracowana przez Agencję Rynku Rolnego. Publikacja współfinansowana ze środków Unii Europejskiej w ramach Pomocy Technicznej Programu Rozwoju Obszarów Wiejskich na lata 2007 - 2013 Instytucja zarządzająca Programem Rozwoju Obszarów Wiejskich na lata 2007 - 2013 - Minister Rolnictwa i Rozwoju Wsi

Food Industry

The 3 Congress of Polish Agri-Food Exporters rd

n 12 March 2015, the 3rd Congress of Polish Agri-Food Exporters, organized by the Association of Polish Exporters, was held at the Ministry of Agriculture and Rural Development under the Honorary Patronage of Eugeniusz Grzeszczak, Deputy Speaker of the Parliament, Marek Sawicki, Minister of Agriculture and Rural Development, and Province Marshals. The topic of the Congress was “The New Financial Framework 2014-2020 for AgriFood Exports”. The 3rd Congress was hosted by Mieczysław Twaróg, President of the Board of the Association of Polish Exporters; it was attended by 120 representatives of exportproduction companies and institutions from all over the country. Among the participants in the 3rd Congress were Marek Sawicki, Minister of Agriculture and Rural Development; Jerzy Chróścikowski, Chairman of the Senate Agriculture and Rural Development Committee; Janusz Gołos, Consultant in the Chancellery of the Polish President; Michał Skotnicki, Head of the Staszów’s District; Maria Rasała, General Counsellor of the Minister of Economy; Andrzej Grabowski, General Counsellor of the Minister of Infrastructure and Development; Sławomir Krużmanowski, Deputy Director of the Department of Units Subordinate to or Supervised by the Ministry of Economy;

Wojciech Pobóg-Pągowski, First Counsellor, Head of the Trade and Investment Promotion Section in the Polish Embassy in the Czech Republic; Mirosław Węglarczyk, First Counsellor, Head of the Trade and Investment Promotion Section in the Polish Embassy in Spain; Włodzimierz Sadzik, Counsellor, Head of the Trade and Investment Promotion Section in the Polish Embassy in Romania; Maciej Leśny, President of the Supervisory Board of mBank S.A.; Wiktor Szmulewicz, President of the National Council of the Agricultural Chambers (KRIR); Lucjan Zwolak, Deputy President of the Agricultural Market Agency (ARR); Prof. Andrzej Lenart, Warsaw University of Life Sciences (SGGW); Prof. Longin Pastusiak, Vistula University; Franciszek Adamicki, Director of the Research Institute of Horticulture; Prof. Andrzej Kowalski, Director of the Institute of Agricultural and Food Economics; Agnieszka Rembisz, Director of the Office of International Cooperation of the Agricultural Market Agency (ARR); Marek Jakubicz, Director of the Export Credit Insurance Corporation KUKE; representatives of the Embassy of the Czech Republic, the Embassy of Slovenia, ministries of economy, infrastructure and development, agriculture, Bank Gospodarstwa Krajowego, and province marshal’s offices. Prospects for the pro-innovative and proecological development of agri-food exports in 2014 were presented by Marek Sawicki,

Minister of Agriculture. During this part of the session, Marek Sawicki, handed in the Honorary Award “Distinguished Services for Agriculture” to: 1. Abramczyk Ryszard, President of Abramczyk Sp. z o.o. 2. Adamiak Stanisław, President of Zomar S.A. 3. Bartold Lech, owner of Zakłady Spożywcze Malwa 4. Bożek Michał, President of Ustronianki Sp. z o.o. 5. Chmielewska Grażyna, Director of HZ Lubelski Rynek Hurtowy S.A. 6. Jakus Bronisław, President of PPH Mandam Sp. z o.o. 7. Jarosz Stanisław, President of Przedsiębiorstwo Przemysłu Mięsnego Taurus Sp. z o.o. 8. Kędziora Bogusław, President of Sando Sp. z o.o. 9. Maciaszek Żaneta, owner of Gospodars-two Ogrodnicze Żaneta Maciaszek 10. Pawlak Paweł, Sales and Marketing Manager of Wielkopolskie Przedsiębiorstwo Przemysłu Ziemniaczanego 11. Pawłowski Waldemar, President of Spółdzielnia Mleczarska w Żurominie 12. Rygalska Aniela, President of Okręgowa Spółdzielnia Mleczarska w Skierniewicach

4 /2015 polish market

13. Zagólski Wiesław, President of Bartex Sp. z o.o. 14. Zdanowski Jan, co-owner of Zakład Mięsny Wierzejki Sp.j. Certificates of Distriction of the Minister of Agriculture and Rural Development were handed to: 1. Oniszczuk Mikołaj, Head of the Corps of Polish Exports Promoters 2. Nalazek Wojciech, Head of the Newsroom of Agricultural Programme of Telewizja Polska S.A. Afterwards, Mieczysław Twaróg, President of the Board of the Association of Polish Exporters handed in the Honorary Medal “Distinguished Services for Export” to: 1. Wojciech Pobóg-Pągowski, First Counsellor, Head of the Trade and Investment Promotion Section in the Polish Embassy in the Czech Republic, 2. Mirosław Węglarczyk, First Counsellor, Head of the Trade and Investment Promotion Section in the Polish Embassy in Spain, 3. Waldemar Broś, President of Krajowy Związek Spółdzielni Mleczarskich

4. Leon Wawreniuk, Vice-President of Stowarzyszenie AgroBiznesKlubu 5. Małgorzata Cebelińska Manager of HZ Spółdzielnia Mleczarska Mlekpol w Grajewie 6. Leszek Bąk, President of Owoc Sandomierski Spółka z o.o. During the next part of the Congress activities aimed at the development of agrifood exports were presented by: Prof. Andrzej Kowalski, Director of the Institute of Agricultural and Food Economics; Wojciech Pobóg-Pągowski, First Counsellor, Head of the Trade and Investment Promotion Section in the Polish Embassy in the Czech Republic; Mirosław Węglarczyk, First Counsellor, Head of the Trade and Investment Promotion Section in the Polish Embassy in Spain; Włodzimierz Sadzik, Counsellor, Head of the Trade and Investment Promotion Section in the Polish Embassy in Romania; Marek Jakubicz, Director of the Export Credit Insurance Corporation KUKE; Expert in the Export Finance Department of Bank Gospodarstwa Krajowego; and Agnieszka Rembisz, Director of the Office of International Cooperation of the Agricultural Market Agency (ARR). It should be stressed that during the Congress

the assessment of agri-food exports was made, including: • Activities aimed at the development of agri-food exports • Use of European Union funds that are the chance for the development of agri-food exports • Promotional activities aimed at boosting agri-food exports The topic of the 3rd Congress aroused great interest among exporters participating in the Congress. The Congress adopted a position on the implementation of the EU financial framework 2014-2020 aimed at the development of agri-food exports. In this area the priority tasks are: • • • •

Use of instruments aimed at supporting agri-food exports Implementation of European Union’s funds aimed at agri-food exports Concentration of funds on promoting agri-food exports Realisation of pro-innovative and proecological development of agri-food exports. •

13 - 14 maja 2015r. Hotel Westin, Warszawa

Podsumowanie funkcjonowania prawa konsumenckiego w bankach G ŁÓ W N E Z AG A D N I E N I A • Najnowsze orzecznictwo SOKiK i Arbitra Bankowego w zakresie klauzul abuzywnych

• Warunki umów oraz regulaminów w stosunku do praw konsumentów

• Problematyka sprzedaży na odległość (distance selling)

• Najnowsze uregulowania w odniesieniu do Rekomendacji U

• Prawa konsumenta w umowach o usługi płatnicze 28 polish market

Kontakt: m.janas@mmcpolska.pl  22 379 29 36

www.mmcpolska.pl

4/2015 29 polish polish market market 29

Food Industry

Despite the dominance of the Internet, fairs are an important marketing venue

Elżbieta Tęsna, President of Eltar What is the export potential of Polish food? How would you evaluate it, given foreign interest in Polish products? Poland is one of the EU’s major food producers, and the largest producer of apples, chicken and mushrooms. Polish food exports are steadily increasing. In 2014, they hit a record high of more than EUR 21 billion, a 5% increase compared to 2013. A trade surplus of more than EUR 6 billion was registered. It should be emphasised that the growth was achieved despite difficult market conditions, namely the Russian embargo. Although more than 70% of Polish food exports goes to European markets, mainly to Germany, Britain, France, the Czech Republic, Italy, an increase has been evidenced in exports to non-European countries, especially to Africa. In 2014, exports to Africa doubled and exceeded EUR 670 million. Polish food producers are also present on many Asian markets, in the Persian Gulf, in Canada and in the United States. Even based on these fragmentary data, it can be concluded that Polish food products are sold on many foreign, often distant, markets. pm

What is your experience with agri-food fairs? Do they attract visitors? Over its 20-year history, the backbone of Eltar’s business has been to comprehensively organise the participation of Polish food exporters in agri-food trade fairs. We handle large national exhibitions, as well as individual companies’ stands at prestigious fairs, such as Anuga and ISM in Cologne, or SIAL in Paris. These fairs have been regular items on the agendas of Polish food exporters for several pm

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years. The sectoral arrangement of exhibition halls, vast numbers of exhibitors and visitors from around the world and a rich programme of accompanying events are the factors which make the fairs extremely popular. We are now preparing the participation of Polish companies in Anuga 2015. Despite the fact that the fair will be held only in October 2015, the exhibition area in sectoral theme halls, such as dairy, meat, or Fine Food, was no longer available as early as at the beginning of the year. Our customers are informed early and we start working with the fair’s organiser in advance so as to secure Polish exhibitors not only surface, but also a favourable location, which is an important factor of success. It can, furthermore, be concluded that, despite the dominance of the Internet, fairs are a privileged marketing venue, allowing to showcase or, in case of food, taste products, meet buyers and exporters. They remain the most important form of promotion. Which of your events is the best venue for companies and manufacturers from the agri-food sector? I have already mentioned the most important European food fairs: Anuga and ISM in Cologne, and the SIAL in Paris. Obviously, there are much more trade fairs worth attending. Polish food exporters courageously eye new markets, including outside Europe. Another important international food trade fair where Eltar, together with Polish producers, promotes Polish food is Dubai’s Gulfood. For eight years, we have organised Polish exhibitions at that fair and the last edition in February 2015 was a record one in terms of the pm

number of Polish exhibitors (almost 70). Polish products that enjoy the greatest interest from visitors are sweets, dairy products, fruit and vegetable products, but also tea, breakfast products, apples and fruit juices. In an effort to look for new markets, it is already the second time that Eltar is organising the participation of Polish exporters in Africa’s Big 7 in Johannesburg. This year, the interest in Africa’s Big 7 increased and, so far, 17 companies have already enrolled for an exhibition area of 180 m2. I would like to emphasise that we are supported by the Department of Promotion, Trade and Investment at the Polish Embassy in Johannesburg. Finally, a good place to present Polish food is SIAL China in Shanghai. We have organised there individual stands for our customers for many years. This year, we will bring there a total of 14 companies for an area of 200 m2. Poland’s participation in SIAL China 2015 accounts for a considerable share of all visitors, and a number of sectors are represented, including meat, dairy, confectionery, fruit and vegetable processing. It is worth noting that since 2014 Eltar has been an exclusive representative of Allworld Exhibitions in Poland and has been campaigning among Polish food exporters to take part in food fairs in Asia in Vietnam, Thailand, South Korea, Malaysia, Singapore, Indonesia, Myanmar and Hong Kong. It is still a largely unpenetrated area, but I am convinced that, as in the case of Gulfood or Africa’s Big 7, we can attract new exhibitors and thus to pre• sent Polish food to a wider audience.

The finest taste of rolls

vanilla

cocoa

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www.flis.pl

Food Industry

The brand must go together with

high quality

Krzysztof Koszela, Director for Exports and the Development of Foreign Markets Colian owns many brands of sweets wellknown on the Polish market, such as Grześki, Solidarność or Goplana. How important is it to have a stable brand in your industry? In making purchasing decisions customers are largely guided by their knowledge of the brand. They need to be assured of high quality and added value that can only be offered by a branded product. Trust and tradition matter, that is why products known and appreciated for years win. Private label products, despite an increase in sales in recent years, are still pm

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complementary rather than basic items in the shopping cart. Best selling articles remain those that enjoy good reputation, which means prestige, satisfaction and safety. The brand must go together with high quality, as is the case of our products. Colian’s brands successfully rise to and keep high ranks in various product categories. For many years, they enjoyed popularity and confidence among consumers and business partners, receiving numerous awards in prestigious rankings, polls and contests. The success secret of our products is the combination

of tradition and modernity in the manufacturing process, as well as a guarantee of quality and taste. Poland set aside, you are present on foreign markets, too. Which of them are most profitable, and which are most promising? Colian is one of the leaders of the Polish confectionery market, very well prepared for export. The company’s products are appreciated by consumers in Poland and in over fifty countries around the world. The company knows no pm

Food Industry economic barriers, and its exports are diversified. Colian cooperates with distributors in the EU and the rest of Europe, Asia, North America and the Middle East, the largest outlets being Britain, the US, Mongolia and Libya. These markets harbour a huge potential in terms of consumption of sweets and they are given priority in the search for new distribution channels. Other rapidly growing export destinations are Algeria, Israel, South Korea and Brazil. Arab countries are cited among prospective export directions, with consumers constantly looking for new high-quality products. China, Korea and India are now regarded as the world’s most attractive markets, as well as the largest consumer markets. These are the regions that offer measurable opportunities, therefore Colian is focused on strengthening its foothold there. The presence on foreign markets is a great opportunity to develop and increase the company’s market share. That is why, we are permanently enhancing our competitiveness by launching new products or implementing various projects. On foreign markets Colian offers flagship brands, as well as the equivalents of well-established Polish brands under globally renowned brands, in packages tailored to local markets. The company’s line is geared to local consumer habits, like for example our spice blends dedicated to the Russian and Mongolian markets. Colian has an extensive portfolio (from pralines, through wafers and jelly, to caramels and sugared almonds), and its wide and varied line allow it to satisfy the most demanding consumers. There have been a number of trade missions organised in recent months. Is Colian involved in them in search for new markets?. Both trade missions and fairs are a significant aspect of the company’s export strategy, given its continuing desire to conquer new markets. Such events are extremely important from the point of view of building and nurturing relationships with the existing customers, establishing new contacts and promoting the product portfolio. Missions, in which we participate, are usually accompanied by an exhibition and trade fair, allowing Polish companies to advertise themselves, discover local shops, pricing policies, and meet with potential local partners. This year, we showed up at Gulfood in Dubai, while participating in an associated trade mission. We had a series of meetings, we met customer needs. We hope that the result will be winning new partners. Trade missions and fairs give the company an opportunity to promote itself abroad, to reach out to a wide audience, to get itself introduced to potential contractors, as well as strengthen its leverage. They are furthermore an opportunity to make business contacts, share knowledge pm

and experience as well as to get to know the latest trends, industry news and prospects for the development of a particular food segment. This allows us to broaden horizons and coordinate cooperation with foreign customers. In order to meet consumers’ expectations, the company offers innovative solutions, as a result of which business partners and consumers show greater interest in Colian’s products. Export drive steps up the company’s going global, which in turn makes it easier to match the requirements of distant markets and enhance competitiveness. What in your opinion is the most difficult thing for food market players? The most difficult thing is meeting the needs of the market and overcoming barriers to entering the market with a specific product. The key formal barriers are: ignorance of regulations, problems with procedural adjustments and lengthy proceedings related to obtaining permits or other formalities. Entrepreneurs have to reckon with the need to deal with a number of regulatory obstacles, aimed to privilege a particular business. Other burdens include: considerable cultural differences, political situation that sometimes adversely affects cooperation or local competition. Therefore, it is essential to find the right partner who will introduce your company into the market, explain its characteristics, and facilitate trade. Successful entrepreneurs should demonstrate vast knowledge, commitment and individual approach, to understand the market specifics, and comply with its regulations and standards. Not all products popular in Poland meet the expectations and requirements of consumers in China or in Arab countries. Despite numerous difficulties, entrepreneurs must make firm decisions, sometimes running a certain risk. Given the untapped potential of many markets, it can be assumed that exports are what makes the company grow and strengthen its position in permanence. pm

Is there room for innovative solutions in your industry? Innovation in the food industry is forced by the market, as well as consumers’ needs and changing preferences. Polish customers are increasingly demanding. They expect product innovations with respect to taste, but also form, weight and packaging. Colian is focused on development and innovation. Specialising in manufacturing, sales and distribution of foods, ensures that innovation is given priority both in terms of technology and marketing. We are developing machinery, investing in production facilities and new technologies. The company’s creativeness and innovative solutions contribute to the development of product categories it represents under its various

Krzysztof Koszela, Director for Exports and the Development of Foreign Markets

Innovation in the food industry is forced by the market, as well as consumers’ needs and changing preferences.

brands, and thus to the development of the whole food market in Poland. Changes help increase our competitiveness vis-à-vis the global brands with a strong clout on the Polish market. Innovative solutions make for the promotion of Polish brands and domestic foods in the country and abroad. We have recently made a lot of development investments, which resulted in, among others, launching new products in the categories of pralines, chocolates, wafers and still beverages. Innovative products have increased the company’s competitiveness and strengthened the market position of its individual brands. In a quest for development we launched in September 2014 a modern manufacturing plant in Bydgoszcz. • 4 /2015 polish market

Food Industry

Nutricia

The highest quality for children’s health Andrzej Drosik, Member of the Board, Nutricia Zakłady Produkcyjne Sp. z o.o.

utricia Zakłady Produkcyjne is the largest plant of the Danone Group in Europe manufacturing foods for infants and young children. The goals it pursues in every business area echo its mission: “The highest quality for children’s health.” One of the milestones of the company’s development was the launch, in April 2014, of a new production unit of modified canned milk, which was built in record time of six months and helped extend Nutricia’s product portfolio. The unit, located in a new building within the production site in Opole, was equipped with a modern production line with an annual output capacity reaching nearly 15,500 tonnes. This made it possible to expand to the Middle East, North Africa and Latin America, to countries from Egypt and Kuwait, to Aruba in the Caribbean Sea. Currently, Nutricia’s products reach over 80 countries worldwide. Another project important for the development of the plant in 2014 was marketing of Nutricia’s porridges into China. In the first stage of the project, the customer was presented with the company’s current product portfolio. Porridges have been tested and highly rated. Then, milk recipes suitable for babies of all ages were selected. In the next stages of the project, new ingredients (a composition of vitamins) were introduced that meet unique market needs of the Chinese consumers. Logistics was as important as other challenges of the project. Both the distance to be covered and specific conditions of air freight transportation made it necessary to redesign packaging. Porridges from Opole will appear on shop shelves in China in May. Alongside the above-mentioned projects, it is the organic sales growth that led to an increase in the production volume by 90% within two years. This unusual augmentation required revision and optimisation of almost all business processes with a special emphasis on in-house logistics. Therefore, as part of a separate project, areas were defined requiring changes in storage, equipment, processes, and above all, professional trainings and work organisation. In order to handle greater production, it was necessary to make investment in new equipment: system carts, loading and unloading fork lifts. A supply management system using radio terminals was deployed and the management of the finished product supply was improved.

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Opole’s Nutricia, apart from a purely business activity, is committed to Corporate Social Responsibility. More than 45% of the staff took an active part in its CSR projects in 2014. In 2015 the company won the Polish Presidential Couple’s competition “Good Climate for Families” for offering its employees a conducive climate to reconcile professional and family roles. The business success of the projects described above means also tangible benefits for the company’s nearest environment: more jobs were created in the region and employment in the company increased by 20%. Nutricia puts a strong emphasis on the professional development of its employees. The company’s development plan is developed as the result of a long-term business strategy, business needs but also individual plans that emerge during annual meetings with employees. It is implemented using a variety of methods, depending on their effectiveness. The success of all investment projects is primarily due to the huge involvement and persistence of employees in achieving goals, Nutricia’s hallmark. •

“MLEKPOL” Dairy Cooperative in Grajewo is one of the biggest dairy

cooperative in Poland, 100% owned by Polish farmers. The company’s head office is in Grajewo, north-eastern Poland. MLEKPOL has eleven modern and highly-specialized production sites located in the greenest Polish regions. It is also one of the twenty largest dairy manufacturers in Europe. Every year the Company buys and processes app. 1,5 billion liters of milk, which represents the Polish market share of over 14%. MLEKPOL’s daily output capacity is approx. 1,8 million liters of UHT milk, 200 tons of cheese, 120 tones of milk powder. The Cooperative exports almost 30% of its total production, mainly: > UHT products: milk, cream, coffee cream, evaporated and flavoured milk > Semi - hard cheeses as Gouda, Edam, Maasdam, Cagliata, Tilsit, Salami, Havarti (blocks, portions and slices) and hard cheese > Butter and butter spreads > Powdered products: skimmed milk powder, whole milk powder, buttermilk powder, sweet whey powder and whey powder demineralized 50% Spółdzielnia Mleczarska „MLEKPOL” w Grajewie Ul. Elewatorska 13, 19-203 Grajewo, POLAND Tel. +48 86 273 05 37, fax: + 48 86 273 89 23 export@mlekpol.com.pl www.mlekpol.com.pl

Agriculture

President Bronisław Komorowski visitS

Jana Dairy Cooperative in środa Wielkopolska

n 10 March 2015, Polish President Bronisław Komorowski visited Jana Dairy Cooperative in the town of Środa Wielkopolska in western Poland. President Komorowski knows Środa’s dairy products and the cooperative’s Management Board chaired by Maria Czwojdrak very well. Every year, Jana has its stand at the presidential harvest festival in Spała, and President Komorowski always willingly tastes cheeses and yogurts from Środa. Now, for the first time, he had an opportunity to see how Jana looks from the inside. He was greeted by Wojciech Ziętkowski, Mayor of the town of Środa Wielkopolska, and Maria Czwojdrak. The latter showed President Komorowski round the production halls where butter and cheese are packaged. An unofficial meeting followed, during which Bronisław Komorowski had a cup of tea, tasted cheeses, and was treated to a piece of cheesecake made from cheese produced in Środa’s cooperative. The history of Jana dates back to 1884, when a private entrepreneur, taking advantage of the rapid cattle herd growth in the region, launched Środa’s first dairy plant. It appears from the documents from that period that its sole owner was Jadwiga Teodora Von Duszyńska. According to the documents from 1884, Mrs. Duszyńska asked the local police for permission to work on Sundays and public holidays. The permission, which can be found in the cooperative’s records, was issued (in German) on 23 February 1885. On 20 October 1905, a dairy cooperative was created, which bought out the plant from Jadwiga Von Duszyński in 1906 and embarked on the construction of a new facility which, after multiple upgrades, is still used today as part of the manufacturing complex. In May 2006, Jana enlarged its range of products to semicured cheeses, produced in a production unit in Kazimierz Wielkopolski. The use of modern equipment and technologies, combined with the traditional manufacturing methods, makes for excellent dairy products, acclaimed by a growing number of consumers, both at home and within the EU. We produce mainly fresh dairy products: milk, cream, milk drinks, yogurt, cottage cheese, and butter, which meet daily nutritional needs of our customers. The quality of our products is guaranteed by compliance with the good manufacturing practice (GMP) and other healthy nutrition standards. Środa’s Dairy Cooperative is very modern. The plant systematically increases production and

36 polish market

upgrades infrastructure by implementing the latest technologies available in the dairy industry. Cooperation with many supermarket chains, which set their suppliers extremely high standards, shows that the cooperative has successfully managed its development, while maintaining high and stable quality, as confirmed by annual audits conducted by specialist firms for chain • customers.

Hochland Polska a socially responsible company In the current edition of the Business Centre Club Contest, Hochland Polska received the Medal of Social Solidarity. The award of the Social Solidarity Medal is an expression of appreciation and gratitude for the company’s community involvement, outreach, promoting corporate social responsibility and building social solidarity. The nomination for Hochland Polska is not accidental. In recent years, more and more companies, including Hochland Polska have been active in the area of corporate social responsibility (CSR). For many years Hochland Polska has been trying to be a responsible company to its employees, customers, consumers and suppliers. Jacek Wyrzykiewicz, PR&Marketing Services Manager, Hochland Polska Spółka z o. o., talks to “Polish Market”.

What is the role of Corporate Social Responsibility? Responsible business, as a company management and development strategy, allows to achieve long-term business advantages and stimulates innovative solutions. Therefore, it is worthwhile to focus on areas of application for sustainable solutions and market operations, such as, for example, strategic relations or support in the preparation of a sales offer. Value drivers are primarily market innovations, employee motivation and cost reduction. Modern CSR is understood as a way of doing business. While taking into account the interests of society it is at the same time an ordered action in four areas of the company: the market, the environment, the workplace and society. pm

What is the range of activities conducted? The “My child goes to school” campaign is aimed at children of primary school age, as well as their parents and guardians. The initiators of the programme want to raise the knowledge of parents and guardians regarding selected elements of a healthy lifestyle for children, as well as shape pro-health food habits. The consumption of dairy products is especially important among pre-school and primary school children. As a market leader and socially responsible company, we wish to actively promote healthy nutritional habits. This is why we are eager to become involved in various initiatives and campaigns which educate parents, as well pm

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as children in the area of healthy nutrition in an approachable manner. On the other hand, the educational campaign “A liter of milk is a bother, 4 slices are convenient” is aimed at promoting hard cheeses as not only a tasty, but also healthy ingredient of a day to day diet for children. We also wish to draw the attention of the public to the need to increase the share of rennet cheeses, rich in natural calcium, in children’s diets. The campaign shows how we can prepare sandwiches with children in an efficient, but also fun way. What new products are there in Hochland’s “breakfast” offering? Consumers always search for natural products – they take note of their contents and origin. The trend of returning to simple, homelike flavours, while also discovering novelties, is becoming more prevalent. The pace of life is increasingly fast, more and more people prefer a healthy lifestyle and healthy nutrition, which influences their decision to search for quick and convenient solutions in food products. Hochland, understanding the needs of consumers, introduces a unique line of products named Hochland Twarogowy to the market in two variants – slices and portions. Hochland Twarogowy Cheese is produced on the basis of natural curds, which gives it a truly curd cheese flavour, at the same time highlighting the sharp and intense additions. Hochland Twarogowy Cheese in slices is offered in several variants: natural, pm

with horseradish, with onion and chives and with pepper. Hochland Twarogowy Cheese in portions is available in natural, mix and duo variants. We are working on new concepts in every segment. We are always involved in the development of the categories present on the market and take advantage of their high potential. We cater to the consumers’ expectations introducing new options to our product • range.

Hochland Polska Spółka z o.o., one of the leading companies in the cheese market, is part of the Hochland Group whose headquarters – the Hochland SE Company – is located in Heimenkirch, Germany. The Hochland Group hires approximately 4200 employees in 8 countries and achieves an overall turnover at the level of EUR 1 billion. Over a dozen years of experience in cheese production, state-of-theart technologies and strict adherence to worldwide production standards guarantee the highest quality of products. Hochland Polska, established in 1993 has many production facilities, where it hires nearly 900 employees. In Poland Hochland specializes in the production of processed cheese (in the form of portions, slices, blocks and in cups), cream cheeses, hard cheeses and soft cheeses. The company’s portfolio of brands available in Poland includes the most popular cheeses, including Hochland, Almette, Valbon and Piato.

Apro Trade Sp. z o.o. T : +48 22 781 7777 ul. Narutowicza 37 info@tomcaffe.com 05-091 Ząbki, Poland www.tomcaffe.com

4/2015 polish market

Food Industry

The poultry industry a golden egg of the Polish economy Marek Wcisło, Managing Director of Kompass Poland

espite the Russian embargo imposed last year on Polish poultry and eggs, the poultry industry is doing quite well and there is nothing to suggest that this will change. Polish producers are increasingly and willingly involved in foreign trade, and the trend has only intensified with the closure of the Russian market. Poles are trading not only in Europe but also try their hand in more remote parts of the world. According to Sławomir Majman, President of the Polish Information and Foreign Investment Agency, Poland’s opening to extraEuropean markets is not only the matter of necessity, but also the innate curiosity of Poles. “The Russian embargo has encouraged us to explore more distant countries, but with great potential, for example in Asia, Middle East, North Africa and South Africa, which are open to our products embargoed by Russia.” Moreover, restrictions imposed by Russia do not have much impact on our poultry exports because Polish farmers and manufacturers have their major outlets in EU countries. Currently, residents of EU countries consume an annual average of 12.5 million tonnes of poultry meat. The last twenty years were a period of continuous development for the Polish poultry industry. This segment of the economy has for

40 polish market

years been characterised by high growth both domestically and on foreign markets. Every year, the output of the poultry industry - broiler chickens, herd turkeys and eggs for consumption - grows by an average of 7-8%. The increased production is in keeping with increased demand for poultry. Per-capita poultry consumption in Poland, which was 11 kg back in 1990, tripled to almost 30 kg by 2013 and is now higher than the European average (22.5 kg). In Poland there are currently 3000 sheds, half of which belong to the leading producers associated with the National Poultry Council. Chickens are grown mostly in Wielkopolska, while turkeys in Warmia and Mazury, and the Lublin region. According to data from the National Poultry Council, in 2012 Poland reached poultry export levels of 510 thousand tonnes, outperforming the United Kingdom, and became Europe’s largest producer of poultry meat with output at 1.92 million tonnes and the market value of more than PLN 10 billion. In 2014 Poland maintained its leading position with the poultry output of almost 2.1 million tonnes. Total exports of livestock, meat, giblets and poultry products amounted to 867 thousand tonnes, i.e. 20% more than last year. Extra-EU poultry exports increased by over 28% and totalled almost 150

thousand tonnes. The biggest customers were South Africa and Benin. Forecasts are optimistic. The European Commission’s report “Prospects for agricultural markets and farm incomes in the EU between 2014-2024” finds that over the next 10 years the production and consumption of poultry in Europe will increase significantly - up to the level of 13.7 million tonnes. Poland can take advantage of this momentum, especially that our poultry is valued by foreign trade partners who appreciate not only its quality, but also the way it is stored (cooled or packaged), transport and observance of EU rules. In order to encourage Polish poultry producers to increase foreign sales, the Agricultural Market Agency created the Fund for the Promotion of Poultry Meat under which more than PLN 12.112 million was allocated for the implementation of tasks scheduled for 2015. these tasks include promotion of poultry meat and processed poultry products, both in Poland and abroad, participation in farming-related exhibitions and fairs, market and scientific research, as well as training for poultry producers and processors. The Fund will support projects such as “Goose Festival,” “European poultry – the force of the quality,” a promotional campaign dedicated to the markets of South Africa, China and Vietnam, or “Chicken at home and at school, not only in broth,” a promotional campaign run in four Polish provinces and along the Czech-Polish border. It should be remembered that building a strong export market requires disseminating knowledge of the Polish economy, its potential and cooperation opportunities among our foreign partners. In fact, business information is a key aspect in establishing international contacts and growing exports. In order to effectively conquer foreign markets, Polish entrepreneurs need to gain understanding of these markets and actively promote their business potential. This is a recipe for continued, suc• cessful development of Polish exports.

Source: Kompass Poland Sp. z o. o.

Food Industry

We are conquering

organic food markets Bohdan Juchniewicz

“

We are not going to teach the Japanese how to prepare sushi, but we will be encouraging them to use the beneficial properties of organic chokeberry on a larger scale,” says Maciej Bartoń, a representative of the Board of the Polish Ecology Association. We are getting ready for a campaign to promote Polish organic food in Japan and then in the United States and Singapore. We have signed a three-year agreement to this effect with the Agricultural Market Agency and are preparing members of our Association for a slightly different activity when conquering the “Land of the Samurai” and during further exhibitions: in Baltimore and Singapore. Findings of surveys conducted by the Organic Market Research Project indicate that Japanese consumers attach the greatest importance to healthy and nutritious food. For 97% of them the “organic” brand matters greatly. This segment of the Japanese market has by far exceeded USD1 billion and Polish firms would like to have a piece of this pie. Apart from chokeberry, which can be called our flagship product, we have a whole range of nutritious and certified food. During our visit to Nuremberg, we carefully analysed what the Japanese exhibitors had to offer at BioFach, the world’s most important organic food fair. Everyone who takes part, or wants to take part, in the organic food market, goes to BioFach being there is simply a must. BioFach attracts more than 2,000 exhibitors from 136 countries and 44,000 visitors.

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Polish Ecology Association in Japan and the United States

People visiting our exhibition were treated with great old Polish hospitality to steaks fried at the stands and served with cranberry sauce, and slices cut off from a 40-kilogram cured beef leg. There was a queue of people waiting to taste this Galician speciality produced by the Jasiołka meat-processing plant from Dukla [south-eastern Poland – ed.]. Such a unique taste of meat can be achieved thanks to the system of organic cattle production applied in Podkarpackie province. The visitors also gorged on goat cheeses from the organic farm Figa and organic Polish-Norwegian farmed salmon produced by Limito from Gdańsk. It is possible that we will repeat in Japan our proposal for a true eco-breakfast - appetizing scrambled eggs prepared every morning by Stefan Bednarek. Export is an opportunity for the Polish organic food market, which is still very shallow, especially for food processors. A higher potential means higher supply on the domestic and foreign market. In Germany, for example, many organic food items are cheaper than in Poland. This is due to a large market and the economies of scale. Costs decrease when delivery logistics is less of an issue. An important thing is the need to change the share of Polish products on shop shelves so as to replace imports with Polish-made food. But the most important mission of the Polish Ecology Association, apart from educating the public about ecological problems, is bringing businesses operating on the eco market together and helping them to develop their activity.

“It gives me satisfaction to see successive firms joining our Association,” adds Maciej Bartoń. “We are not going to be merely a ‘travel agency’ for them, but an active captain seeking information about lands that may be conquered and providing it to the crew. We try not to neglect consumer education because raising public awareness is equally important for the Association as the development of production. Our efforts are focused on the youngest consumers, especially schools of all levels. We remember about the need to involve professional cooks and chefs in our activities. They are in the best position to answer the recurring question: ‘Do you know what you eat?’ And they are doing it convincingly.” The Polish Ecology Association of processors and producers of organic products brings together persons and businesses involved in the production of food using certified organic raw materials. The main mission of the Association is to represent the whole organic food sector and contribute to the development of the organic market. Over the nine years since its inception, the Association has carried out many campaigns promoting the best food in Poland and abroad. A new campaign promoting Polish organic food in the United States, Japan and Singapore is to be launched in the near future. Organic food production methods contribute to protecting public health and maintaining biodiversity in keeping with the slogan: “Organic Means Healthy.” •

Golden

Engineer

Innovation

2014

Jerzy Bojanowicz

“

Technology is an integral part of our times. In areas as diverse as medicine, industry, trade and transport - it is technological progress that opens up new opportunities, improves life quality, facilitates interpersonal communication. Technological advancement also determines today the position and strength of the state. It is therefore important that technical sciences in Poland develop dynamically, attracting talented young people and giving them the potential, which may give rise to innovations and civilisational transformations in our country.” So begins the letter of President Bronisław Komorowski addressed to the participants of the Awards Gala of the 25th edition of the competition “Golden Engineering 2014,” organised by “Przegląd Techniczny,” and read out by Maciej Klimczak, Undersecretary of State in the Office of the President of Poland. The President recalled that in 2014 the Gala took place at the Presidential Palace. He said he is “proud of the successes of Polish engineers who are able to take advantage of the area of freedom opened before the Poles after 1989.” The Gala, which was held in the 110-yearsold House of Technology, was inaugurated by Ewa Mańkiewicz-Cudny, editor-in-chief of “Przegląd Techniczny” and President of the Polish Federation of Engineering Associations FSNT-NOT. She said, among others, that “the purpose of the competition is looking for technology creators who are successful in various fields. Among more than 500 winners of the title of Golden Engineer are the authors of technical achievements and patents who have found their feet in the market economy, because they built their businesses from scratch. Now, they will be able to benefit from EU funds under the Operational Programme “Intelligent Development.” We also have the holders of the prestigious title of Honorary Golden Engineer: doctors, bankers, artists, journalists and politicians. Their success stories lead to the conclusion: “Engineers can”. Among this year’s winners are the people who once worked in large industrial plants, which went bankrupt (not always happily for the country), forcing them to find their place in the market economy.”

Jerzy Pietrewicz, Secretary of State in the Ministry of the Economy and Prof. Włodzisław Duch, Undersecretary of State in the Ministry of Science and Higher Education who, together with Ewa MańkiewiczCudny and Maciej Klimczak, handed in diplomas and statuettes to the winners. The other guests were, i.a.: Mieczysław Borowski, President of the Office of Technical Inspection (UFT), Michał Pachowski, President of the Polish Centre for Testing and Certification, Dr. Eng. Tomasz Henryk Schweitzer, President of the Polish Committee for Standardisation, Prof. Eng. Leszek Rafalski, Chairman of the Central Council of Research Institutes, Andrzej Arendarski, President From left: Maciej Klimczak, Jerzy Pietrewicz, Włodzisław Duch, of the Polish Chamber of Commerce, Ewa Mańkiewicz-Cudny i Zdzisław Juchacz. Andrzej Roch Dobrucki, President of his commitment to the initiative of President the National Council of the Polish Chamber of Civil Engineers, Sławomir Wachowicz, Deputy Bronisław Komorowski - restoration of CadilPresident of the Polish Patent Office. lac 355D, a limousine owned by the Museum of Technology in Warsaw, which was ordered for Jerzy Pietrewicz believes that “in the next financial perspective engineers will unlock the Marshal Józef Piłsudski in 1934. It now can be potential of the Polish economy, research instiseen in the glass capsule in Łazienki Królewskie. tutes, factories, so that we can compete with the The Golden Engineers from past editions world’s best players.” were awarded special mentions: Andrzej Sajnaga, President and major stakeholder of ASProf. Lena Kolarska-Bobińska, Minister of MET Group in Reguły near Warsaw, who has Science and Higher Education, in a letter read been named Diamond Engineer, and Zdzisław out by Prof. Włodzisław Duch, wrote that she is happy that “Przegląd Techniczny” continJuchacz, President and Director General of Milues the great tradition of rewarding outstanditary Armament Factory SA Grudziądz (Golden ing engineers. “Technical occupations are today Engineer of the 20 Years’ Time). the building blocks of the innovative and comThe title of Honorary Golden Engineer of petitive economy. (...) We train brilliant profes- “Przegląd Techniczny” was awarded to Prof. sionals, designers and young engineers, who, Eng. Zbigniew Paweł Kruszewski, Chairman still during university studies, are successful of the Council of Scientific Societies under the in international competitions. This shows that Polish Academy of Sciences, Prof. Eng. Krzyszwe can count, and even win in today’s race of tof Jan Kurzydłowski, Director of the National Centre for Research and Development, and Prof. new technologies.” Before the Awards Ceremony, Ewa Małgorzata Omilanowska, Minister of Culture Mańkiewicz-Cudny presented Maciej Klimc• and National Heritage. zak the Piotr Stanisław Drzewiecki Medal - the highest honour of FSNT-NOT awarded for outstanding technological or social achievements matching the objectives and scope of activiThe full list is available at www.przeglad-techniczny.pl. ty of FSNT-NOT. Klimczak was awarded for

Golden 4/2015 polish market

Innovation

ASmet

among European leaders “My biggest success was creating a great team of professionals who are building, with passion and commitment to customer service, the company’s position on the market of fasteners,” Andrzej Sajnaga, President of the Board and founder of ASmet Sp. z o.o. Sp.k., tells Jerzy Bojanowicz. 29 years ago you, started a machine and casting shop manufacturing nuts, screws and aluminum radiators. How do you remember the beginnings, and then the first years of Poland’s transition to a free market economy? My way to my own business was simple yet challenging. As a young engineer, a graduate of the Warsaw University of Technology, I started working in the Mechanical Works “Ursus” in 1970, where I gained practical knowledge and ability to manage increasingly large projects and human resources. I have always approached my tasks with full commitment and belief in success, and as I was effective in goal pursuit, my superiors had confidence in me and set the bar even higher. First hired as a constructor, after 5 years I was given the job of iron foundry manager and, with a team of 1,200 people under myself, I was responsible for a casting output of 40 thousand tonnes per year. This was a huge challenge for me, and looking retrospectively, I managed very well, and the experience I gained in this position allowed me to take a bolder look at the idea of running my own business. On 1 February 1986, I started my own business. First in Malichy near Pruszków, in the basement of my own house, I produced aluminum radiators and nuts. Then, in 1992, I moved the company to Reguły, near Warsaw, pm

44 polish market

and I decided to focus on fasteners only. That is how a new screw business quality, called ASmet, was being created. The political and economic transformation that started in Poland in 1990 opened up new opportunities for private entrepreneurs. The market was very receptive and fasteners were needed, and we could, without systemic obstacles, undertake direct cooperation with the country’s biggest producers. That is how the private wholesale market was being born, and so was my company. When I started my business, I had 2 employees, then 6, and now 500, including 70 engineers and 140 technicians. Today, ASmet has two factories, two logistics centres, two electroplatings, hardening lines, its own retail chain, while also cooperating with wholesalers throughout the country. I must say that the technical knowledge I acquired during my studies was very helpful at each stage of the company’s development. As a graduate of the Department of New Technologies at the Warsaw University of Technology, I knew how to optimise processes and logistics, something which gave me a large competitive advantage. Why did you go into screws and not casts? Because casting is a very complex process, both technically and technologically, and cost-effective production required very pm

high investment. I did not have such money at the beginning of 1990s. In addition, it took weeks from the purchase of materials, through production, to sales and settling payments. In the case of screws - specifically forged bolts - there was no such problem: materials purchased on Monday would bring return by Friday. It then justified my choice, and today, retrospectively, I can only confirm I scored a bull’s eye. What is the secret of ASmet’s success? It is certainly a well thought-out and consistently implemented market strategy, the backbone of which is a total customer focus. The latter is the basic premise of our market strategy and the only guarantee of a continuous, steady growth. Market globalisation has made competition more fierce. Multinationals able to invest lots of money in costly promotional campaigns rival for the Polish market today. But remember: “it’s not the big that eat the small, it’s the fast that eat the slow.” If we continue to raise the standard of our services, to enlarge our product range by introducing new products, to maintain high quality of our products, to make our customers feel confident that with ASmet their order will be delivered timely, then even the largest companies will not be a threat to us. Customer confidence represents the highest value: it pm

Innovation mining and electrical equipment, providing them, in addition to the standard product items, thousands of tailor-made spare parts, according to individual orders. With our own Innovation and Implementation Centre meeting strict quality requirements, ASmet has made itself a name as a trusted supplier of fasteners for steam and gas turbines, high-power compressors, as well as highpressure installations and vessels functioning in all possible climates. Our customer portfolio covers also companies from many other fields: wood processing, mining, road infrastructure, lighting systems, railways, offshore platforms and food industry. How would you describe now the position of your company on the market of fastener manufacturers? Our mission defines the target we strive to achieve, which is to be Poland’s leading manufacturer of fasteners. It is not that we have delusions of grandeur. “Leading” does not mean the biggest, but distinguished by its effectiveness and quality of products and services provided. According to cautions estimates, we are in the top three. We appreciate it when the competition cites ASmet among the five most successful European players, even though it is probably an overstatement, for we realise how much remains to be done. Our strength is our strategy which, adopted nearly 30 years ago, is still valid and guarantees a stable - and regular - development. pm

Our strength is our strategy which, adopted nearly 30 years ago, is still valid and guarantees a stable - and regular - development.

What will ASmet be like in 5-10 years’ time? We will definitely be better in terms of organisation, technology and system. The continuous professionalisation process will not stop the pace of change nor will it radically change its direction. I am convinced that in 5-10 years ASmet will strengthen its market position not only in Europe but also elsewhere in the world. We are already renowned by internationals looking for stable suppliers, able to secure the implementation of key contracts. It is the best time to prove and show the world that Polish quality is no worse than that offered by the world champions and to earn a permanent place on the list of qualified suppliers of fasteners to the world’s leading companies. We are implementing modern technologies, we have created ASmet’s own academy of managers, we keep training to systematically raise our operational standards. Thus, we can complete the most demanding projects faster, cheaper and better than the competition. Our company has a great potential. We just have to make the most of in the com• ing years. pm

takes years to build it and it can be destroyed in a moment. This is a universal principle, regardless of the size and profile of the business. In order not to look anxiously at the competition, we must systematically boost our competitive advantage, something which will only be possible with the continuous professionalisation of all our staff members. It needs to be emphasised, because the individual work of each of us, regardless of the position held, has an impact on the final performance of the entire team. Of course, one of the integral elements of the process of continuous professionalisation is investment in infrastructure and IT solutions. We have something to be proud of in this respect: in 2004 the ASmet Group expanded to include Bispol SA, the third largest fastener production plant in Poland (with the production capacity of approx. 800 tonnes per month), in 2009 we built our own Innovation and Implementation Centre in Reguły, in which more than 5,000 new production orders for special fasteners are handled every year. Since 2003 we have provided our

customers services covering comprehensive logistics “directly to the assembly lines” in a KanBan (JiT) system. So far, more than 30 customers have discovered the benefits of such a service model and entrusted us with the supply of fasteners to their assembly lines, among them the world’s largest companies the engineering, energy, chemical and petrochemical and other industries. In which areas do you feel strong? Our own production facilities, wellstocked warehouse (approx. 40 thousand product items available for continuous sale) and a total of over 150 qualified suppliers around the world make us well prepared to cooperate with any - even the most demanding - customer who needs fasteners. Virtually since the beginning we have been working with the construction and steel industries, supplying them fasteners for the most prestigious investment projects in Poland (including sports facilities, production halls, shopping malls, power units). For 20 years, we have served manufacturers of agricultural, pm

4/2015 polish market

Innovation

Complementary programme for supporting innovation in Poland

innov Prof. Andrzej M. Pawlak, President of Vortex Innovation Consulting Group

46â&#x20AC;&#x201A; polish marketâ&#x20AC;&#x160;

Innovation

am bringing to Poland a complementary programme of the Platform for Removing Economic Disparities and support to innovation in Poland. It is a threetier programme based on the synergy of the competence and technologies unique to each level: regional, interregional and national. The programme will be supporting various directions, unique to each level, in the development of individual regions and Poland. At regional level, it will be supporting strategic regional development directions coherent with the region’s smart specialization. And at national level, it will be supporting strategic directions for the development of Poland, by buttressing National Smart Specialization through selected niche development directions.

• The second stage of the programme speeds up the pace of removing economic disparities through direct support to key competences and technologies of individual regions and Poland. Working out the programme’s procedures for identifying gaps in base knowledge and supporting the critical mass of technology will enable strengthening the procedures with the transfer of technology and knowledge from the EU areas which have them. This will enable building the Platform for Removing Economic Disparities at national, interregional and regional level to speed up the pace of removing economic disparities in strategic development directions of individual regions and Poland. This stage will help raising regional and national research and development resources to world-class standards by filling gaps in equipment, competence and technologies in niche development directions. This will enable effective entry onto global markets for products of niche technologies. • The third stage of the programme secures organic costs of niche start-ups funding through the establishment of the National Start-Up Investment Foundation to enable the dynamic development of Poland’s niches. The special dynamics of a niche product’s entry onto the market requires exceptional financing accuracy. I thought for a long time which model to choose and finally found a solution suggested by nature. It will be the unique ecosystem used by sequoias to survive fires. Sequoias grow in a kind of symbiosis - in groves of a dozen or so trees. These huge trees can live for up to 4,000 years and over this period catch fire after being struck by lightning 100 times on average. They have a very unique feature which protects them from being burned down. When a sequoia starts burning the neighbouring sequoias give it their water. As a result, the bark of the burning tree turns into a water jacket. And we have decided to launch this kind of ecosystem in the third stage of the programme. For example, if we need money for commercializing and closing a niche of cancer markers, which has a potential to generate billions, our “jacket” is organic funding.

vation • At regional level, I am in talks with Podlaskie, Łódzkie and Pomorskie provinces. At interregional level, I am mainly interested in Eastern Poland because these areas need the biggest support. The leaders of the programme at this level will be universities or business environment institutions. Working with regional development agencies and technology parks, they will commercialize the programme, creating new startups controlled by local governments. • The Białystok University of Technology, with which I established close cooperation in October 2014, will be the leader of the programme at interregional level. I have held talks about it with Prof. Joancjusz Nazarko, dean of the Faculty of Management. And I have recently presented this programme at the Ministry of Science and Higher Education. • The Warsaw School of Economics (SGH) will be the leader of the programme at national level. I am in talks about it with Prof. Tomasz Szapiro, SGH rector, and have recently presented this programme at the Ministry of the Economy. Among the persons I talked to was Zbigniew Kamieński, director for national smart specialization. The programme was received with interest. Further steps, including the implementation of the programme, will be discussed with the Ministry by the leader. • The first stage of the programme introduces a unique specialized niche innovation method based on the know-how of Vortex Innovation Consulting Group. Its tools and procedures will enable identifying diversified niches in strategic development directions of individual regions and Poland. The niche innovation method consists in turning the identified technology gaps into technology niches on the basis of the identified base competence of the innovating team and the critical mass of technology. The objective of the programme is closing the technology niche to the competition by protecting the intellectual value of the niche’s key solutions. The niche innovation method is provided with modern tools for identifying technology gaps and turning them into niches, and procedures for their effective application.

Therefore, the presented programme is composed of three complementary stages, which are unique in the world: looking for niches, the platform for removing economic disparities and the funding ecosystem. The goal of the programme is to create a global niche based on groundbreaking technologies. The ecosystem fund will make it possible to control the niche and to reinvest in new niches, enabling the continuation of the cycle by creating an effective “Silicon Valley” recipe. A recent debate at a Thursday meeting of the Polish Economic Society, discussions with people managing investment funds and talks with partners indicate there is a real chance to successfully implement the programme of the Platform for Removing Economic Disparities. •

4/2015 polish market

Energy

Power exchange as an institution of public trust? This is possible. “Within 15 years we have won the position of the main platform for wholesale electricity trading in Poland and are building a similar platform for the natural gas market. We ensure trading security and transparent transaction procedures, which directly contributes to the prices of commodities on the exchange being shaped by market forces”, Ireneusz Łazor, President of Polish Power Exchange (POLPX), tells “Polish Market”. Looking back at the 15 years since the inception of Polish Power Exchange, could you assess its contribution to shaping the energy market in Poland, the market’s predictability and transparency, the stability of its rules and standards of behaviour by the market participants? The 15 years means a complete change in the functioning of the electricity market. The gas market is only three years old, so it is just the beginning. But the electricity market of 15 years ago and that of today are two different realities. Now, the market is transparent and supervised by the Polish Financial Supervision Authority (KNF), meets European Union requirements and is a part of the European market. Its trading volumes are high enough to enable building its next segment – a financial market. The number of Polish Power Exchange members changed over time – mainly due to consolidation processes. There are now 67 members operating directly and a similar number operating through brokerage houses. The ties between POLPX and European markets would be strengthened if the potential for cross-border flow of electricity was increased. We are preparing for that with the operator of the transmission system. However, even now, the volume of electricity traded at the POLPX makes it one of the leading electricity markets in Europe. pm

48 polish market

How does POLPX compare with the exchanges on other European markets? As a player in natural gas and electricity markets, POLPX matches its pears in more developed EU countries. Regarding exchange liquidity ratios for electricity markets, defined as the market volume divided by domestic electricity consumption, we are third largest operator. When it comes to the exchange gas market, in this regard we are at the first position in the EU, though I am not going to hide that we are helped by the obligation imposed by the state requiring that a specific amount of gas should be sold through the exchange. This measure was to be, and indeed is, a catalyst for this market. pm

How will the permit for futures contracts change the operation of POLPX? It will be a unique, first-hand experience. We will be able to offer new products – financial instruments based on the price of electricity and later instruments based on the price of gas. This will make it possible for our participants to better shape their purchase and sales portfolio and protect it against price changes. Hedging will become possible. Our exchange will gain the ability to acquire new participants from the world of finance who will be using these instruments to earn money. The market needs such participants because they provide it with liquidity. pm

The activity of Polish Power Exchange and other financial markets based on energy products is targeted at firms operating in the power sector, gas sector, or - more broadly – the fuel sector. Now, we will be capable of expanding the product range to attract the interest of banks or other financial institutions, and create more room for services provided by brokerage houses, as in this case great importance is attached to financial security. We expect that the number of our participants will increase. Will these benefits offset the risk of a rise in energy costs due to the entry of additional market players and the opening of the market to long-term speculation, with the introduction of a “casino” to our fuel and energy sector? I do not fear a rise in energy prices. Just the contrary – these instruments will be stabilizing them. As I said, it is impossible to build a mature market without the financial institutions which improve its liquidity. A whole system for the verification of both entities taking part in trading and the clearing system serves this purpose. Cases of companies’ insolvency have occurred on our market as well. However, the other participants have not even noticed that because this system is constructed in such a way so as to ensure maximum security. And this can surely be guaranteed. pm

Energy Polish Power Exchange also has the right to trade in carbon dioxide emission allowances. Can you already say something about the organization of this market? Our intention is to offer this product. However we have a long way to go because, apart from domestic requirements, one has to meet European Union requirements. An additional issue is the absence of a regulation determining what this market should look like. After the regulation is issued and the process of regulating the emission allowances market is completed, we will consider proposing appropriate market instruments. Their range is very broad – when you look at other exchanges – and includes oneday futures contracts. One should remember that, according to the European Union’s definition, the emissions allowance is a financial instrument. This is why it has to meet all the criteria and regulations applying to the financial market. Depending on when the legislation process ends, we’d like to propose secondary trading in these allowances and perhaps also auctions at the beginning of 2017. pm

Many experts, projecting the risk of a peak power deficit in the national grid in coming years before the construction of new generating sources is completed, suggest that Polish Power Exchange should create a capacity market. What do you think about this proposal? The debates held so far have indeed been quite critical of the administrative activities designed to prevent the deficit and it has been proposed that the focus should be shifted onto market-based solutions. I strongly support such an approach by the Ministry of the Economy. I think we can propose… pm

…organizing yet another market at POLPX? Is it technically possible? It is. Currently in Europe two models of capacity market are considered - a centralized model based on CFD (contract for difference) and decentralized, which is fully governed by market. But from our perspective the most important thing is not to damage the system which is already in place on the European Internal Electricity Market and that at POLPX. Any solution based on a market mechanism is better for market participants than just administered capacity market. POLPX supports capacity market options, which allow parallel undisturbed application of technical elements of energy market security taken care by TSO and market forces facilitated by power exchange, which is a result of market participants’ decisions. The 186 TWh traded in 2014 means we have a good position for developing further instruments and fully joining European Union markets. We must not squander this. • pm

ANY SOLUTION BASED ON A MARKET MECHANISM IS BETTER FOR MARKET PARTICIPANTS THAN JUST ADMINISTERED CAPACITY market.

15 years of the operation of Polish Power Exchange – milestones: 1999 – Polish Power Exchange is set up; June 30, 2000 – The first trading session is held; 2000 – Day-ahead market for electricity is launched; 2003 – POLPX becomes the first, and so far the only, organization to receive a licence from the Polish Financial Supervision Authority for running a commodity exchange in Poland; 2005 – POLPX receives a commodity exchange licence; 2005 – The Register of Certificates of Origin of electricity is launched as the basis of the Polish system of subsidies for renewable electricity; 2008 – The futures market for electricity is launched; 2010 – The obligation to sell part of electricity on the commodity market is imposed; 2010 – Warsaw Commodity Clearing House (IRGiT) is established. As a result, the cost of securing transactions on the exchange is brought to a minimum while the highest security standards are maintained. The risk management system used by IRGiT guarantees clearing security to every member of the Clearing House in case of insolvency of individual participants of the market; 2010 – POLPX takes part in the NWE (North Western Europe) market by means of an electricity connection with Scandinavian countries (SwePol Link cable) under a market coupling mechanism; 2012 – POLPX becomes part of the WSE Group, which has a 100% stake in the company; 2012 – POLPX launches natural gas markets: the futures market and the day-ahead market; 2013 – The obligation requiring that a specific amount of gas should be sold through the exchange is imposed on the gas market. The intra-day gas market is launched; 2013 – The volume of electricity traded at POLPX is for the first time 10% higher than the total amount of electricity generated in Poland. 2014 – The trade was 19% higher than the amount generated. On the gas futures market, it takes only several months for monthly turnover to reach a level comparable to that recorded on the electricity futures market; 2015 – POLPX obtained permission from the Minister of Finance to launch a financial derivatives market.

4/2015 polish market

Energy

PSE S.A.: For the sake of security of the National Power System

Henryk Majchrzak, President of the Board, PSE S.A.

s part of statutory responsibilities to identify and ensure adequate generation capacity reserves for balancing current demand for and supply of electricity, as well as providing electricity and capacity demand forecasts for the power system, the PSE – as a power transmission system operator (TSO) – develops long-term capacity balance forecasts for the National Power System (NPS) and continuously analyses long-term options to cover capacity and electricity demand. Having analysed the demand forecasts, it was concluded that 2015 may bring periods in which the TSO will find it difficult to ensure the required capacity surplus. This is due to the fact that old long-used generating units, while being phased out, are not sufficiently replaced with new ones. In accordance with the forecasts, the greatest difficulties may occur in September 2016. However, this situation will be temporary as, out of the most advanced of the ongoing projects,

50 polish market

two new gas-steam units are to be commissioned next year, i.e.: one in Stalowa Wola and another in Włocławek with a capacity of 467 MW and 473 MW, respectively. Moreover, new large generating system units with a total capacity of nearly 4 900 MW are to be commissioned by the end of 2019. They will include units in Kozienice and Jaworzno, another two units at the Opole power plant, one unit at the Płock power plant and the next one at the Turów power plant. There are also plans to construct the Elektrownia Północ power plant and the Żerań CHP Plant. Actions taken by PSE S.A. to improve the operational security of the NPS, including those to provide the required generation capacity surplus available for the TSO, can be broken down into: • •

primary countermeasures, current operator countermeasures,

Energy • •

additional novel and innovative actions, actions to enable energy imports.

From among primary countermeasures, securing a capacity of 830 MW by the TSO under the intervention cold reserve service, which is to be available for two years since 2016, with a possibility of extension for another two years, must be mentioned. The service is based on using, through the derogation mechanism, generation potential of generating units which were supposed to be permanently phased out before 2016, due to incapacity to meet stricter emission standards. In order to gain access to rapid intervention reserve, the service of demand reduction on TSO request was included in the system service list. Thanks to its agreements, PSE S.A.’s capacity reduction potential is 147 MW. The desired reduction volume to be achieved in 2015 is 200 MW. The primary countermeasures also include implementation of modified rules for determining and settling operating capacity reserve within the system service market. These modifications make electricity generation more profitable for still-active Centrally Dispatched Generating Units and thus create an incentive to keep these units in operation. When the identified threat to the operational security of the NPS occurs, in addition to the primary countermeasures, the TSO has the following current operator countermeasures at its disposal: • • • •

•

mobilisation of capacity reserves at Non-Centrally Dispatched Generating Units (nCDGUs); temporary overloading of generating units, i.e. generation capacity exceeded; operator energy imports under agreements with neighbouring power system operators; adjustment of renovation plans for Centrally Dispatched Generating Units, i.e. rescheduling renovation work appropriately; intervention operation of pumped-storage power plants, which allow for balancing capacity demand in no time.

PSE S.A.’s investments in recent years In addition to actions to maintain available countermeasures and ensure new ones, let us pay attention to investments involving construction of new transmission infrastructure and modernisation of the existing one, whose effective implementation will directly affect the operational security of the power system and ensure reliable electricity supplies. In 2012-2014, PSE S.A. implemented investment projects worth PLN 2.27 billion in total. During the last three years, PSE S.A. has completed its investment projects related, inter alia, to evacuation of power from generation sources and elimination of transmission congestions within the national transmission system, such as: • • • • • • •

construction of the 400 kV Wrocław-Świebodzice line, construction of the 400 kV Pasikurowice-Wrocław line, construction of the 400 kV Kromolice-Pątnów line, construction of the 2x400+220 kV Plewiska-Kromolice line, construction of the 400/110 kV Wrocław station, construction of the 400/110 kV Kromolice station, construction of the 400/220/110 kV Ołtarzew station.

Currently, PSE S.A. has signed contracts with Contractors for investment projects worth over PLN 8 billion, under which more than 80 investment projects in construction and modernisation of network infrastructure are carried out in 2015. PSE S.A.’s investment plans by 2019 This year, PSE S.A. will focus its investment activity primarily on completing investment projects being part of the “Poland-Lithuania power link” project, i.e.: • • •

• • • •

construction of the 400 kV Miłosna-Siedlce Ujrzanów line, construction of the 400/110 kV Siedlce Ujrzanów station, expansion of the 220/110 kV Ostrołęka station by adding a 400 kV switchgear, including modernisation of a 220 kV switchgear and construction of a new 110 kV switchgear, construction of the 400 kV Ełk Bis-Polish border line (towards Alytus), construction of the 400 kV Ełk Bis-Łomża line, construction of the 400/110 kV Ełk Bis station, construction of the 400 kV Stanisławów station.

In order to ensure long-term power security of the country and long-term security of electricity supplies to customers, PSE S.A. is to spend, in the next five years, approx. PLN 8 billion in investments, of which over 77% are expenditures intended for expansion of the transmission grid, while 18% of the total expenditures is to be earmarked for modernisation of existing stations and transmission lines. Investment projects to be implemented by 2019 involve: •

• •

•

construction of: • approx. 2 575 km of 400 kV current circuits, • approx. 102 km of 220 kV current circuits, • one 400 kV power station, • one 400/(220)/110 kV power station, • five 400/110 kV power stations, expansion of: • 47 power stations (different voltages) modernisation of: • approx. 121 km of 400 kV current circuits, • approx. 1 070 km of 220 kV current circuits, • 21 power stations (different voltages) supply and installation of approx. 44 units of transformers with a total capacity of approx. 16.5 GVA.

It should be noted that projects, such as the interconnection of the power systems of Poland and Lithuania, as well as the agreement signed in March last year with a German operator, i.e. 50 Hertz, on installation of phase shifters on PolishGerman cross-border interconnections, will significantly contribute to boosting transmission capacity on crossborder interconnections, thus improving opportunities for electricity exchange with neighbouring countries. This is vital, in particular when electricity demand could not be covered with domestic generation capacity. Undoubtedly, investments in transmission infrastructure improve our energy security. •

4/2015 polish market

Energy

conomy in which there is virtually no waste, no raw materials are wasted, and each product is reused – it is the closed-loop concept that the European Commission wants to implement. Although its recent proposals have been going in this direction, changes are still to come. The European Commission’s proposals with respect to the waste directives were to increase by 2030 the packaging waste recycling rate to 80%, municipal waste to 70%, phase out landfilling waste and ban landfilling recyclable plastics by 2025. The suggested changes were questioned by some Member States and, in the absence of an agreement, the European Commission started working on a new draft to be presented later this year. In previous proposals it was emphasised that higher recycling targets will be the impetus for change in the EU economy - moving away from the linear model to the closed-loop model, also referred to as the circular economy. According to the European Commission, “the transition to a circular economy is a key pillar of a resource efficiency programme introduced by the Europe 2020 strategy for employment and smart, sustainable and inclusive growth.” The circular economy is a concept of building a closed-loop economy in which the raw materials are reused. Failure to reuse them is a potential economic loss, resulting in a necessity of further exploitation of natural resources and increased emission of pollutants into the atmosphere in the process of manufacturing new products. Recycling is cheaper, environment-friendly and saves energy. The circular economy is a system in which wasted products are not landfilled but recycled and reused in the same or another form. Waste such as paper, plastics, glass, ferrous and non-ferrous metals can be recycled repeatedly. Paper can be recycled up to 6-7 times, plastics up to 10

52 polish market

Waste a new commodity in Europe Anna Nowakowska, Sales and Marketing Director, Stena Recycling times and used e.g. in plastic pallets and bins, soundwalls, flower pots or garden furniture. The concept of the closed-loop economy is increasingly approved of, as was shown by the debate on amendments to the waste directives. The assumption is that the circular economy knows no waste, as secondary raw materials are constantly recovered and processed in the manufacturing process. Such a solution requires an innovative approach to waste management and manufacturing processes to be designed from the very beginning with a view to reusing all types of waste. An important element of the implementation of such a system is the choice of materials used e.g. for the production of packaging, so as to minimise recovery expenditure. Advocates of the closed-loop economy underline the need to ensure a longer life cycle and reusability of products. According to data from the Ellen MacArthur Foundation, set up to promote the circular ecology, recycling of products such as cars, machinery, furniture, or electronic equipment could bring the EU savings of USD 340-630 billion, depending on a transformation scenario. Additionaly, the European Commission estimates that the introduction of the circular economy could create 580 thousand new jobs. Poland, which opposed the European Commission’s proposals regarding the waste directives, argued, however, that these are expensive solutions that require an appropriate technology and are not feasible in such a short time. According to estimates by Eurostat, over 2,518 million tonnes of waste were generated in the EU in 2012. In Poland, the Central Statistical Office (GUS) reported approx. 142 million tonnes of waste (data for 2013), of which nearly 131 million tonnes were, among others, due to industrial activities, manufacturing, mining and ore processing. The overall level of industrial waste (i.e. all waste except

for municipal) recovery in Poland amounted to 69.4%. Another 28.6% was disposed of, and 2% is temporarily landfilled. Although the costs of implementing the circular economy might be high, there are also low-cost solutions increasing the level of recycling, which do not require significant investment, are easy to implement, and bring tangible benefits to companies using them. Changing the company’s in-house logistics, i.e. the waste collection system, and educating employees allow to pick recyclable materials, optimise the frequency of rubbish collection and transportation. Minimising the tonnage of waste going to landfills helps reduce costs incurred by businesses and their environmental footprint. The use of secondary raw materials allows to cut manufacturing costs, but also to reduce exploitation of natural resources and curb harmful emissions. These are the solutions that might be of interest not only to enthusiasts of the circular economy, but also to entrepreneurs who want to improve operational efficiency. •

About Stena Recycling: Stena Recycling, a subsidiary of Stena Recycling International, a part of the Stena Metall Group, is a leading international company offering comprehensive solutions in the field of waste management and recycling. Stena collects and recycles all types of waste: paper, plastics, ferrous and non-ferrous and hazardous waste. It is the European leader in recycling waste electric and electronic equipment. Stena Recycling has been present in Poland since 2001 and has 12 branches all over Poland. Each year Stena recovers 700,000 tonnes of industry waste in Poland. In 2012 Stena Recycling launched the first recycling station in Warsaw - STENA EkoStacja, and in 2014 the second one in Swarzędz. www.stenarecycling.pl www.stenaekostacja.pl

Energy

Polish Natural Resources Policy Janusz Steinhoff, Deputy Prime Minister and Minister of the Economy in the Cabinet of Jerzy Buzek, outlines the assumptions of the report titled “Polish Natural Resources Policy – what it lacks and what is very necessary”

he report that we have prepared is extremely needed. In Poland, we often think about tactics that we adapt to the unknown strategy. The report on Polish Natural Resources Policy is a comprehensive attempt at solving a major problem, which is the country’s mineral policy. To date, the Council of Ministers has not adopted such documents, and that is a pity. Therefore, we propose a natural resources policy that would be coherent with sectoral policies and national energy policy. We also touch upon the functioning of the State administration. Until 1989 the exploration and exploitation of mineral resources were a State monopoly. Changing this system required a revolution in the geological and mining law. It was a very complicated, legislatively one of the most difficult amendments. At that time, as the president of the State Mining Authority, I was working on these regulations at the behest of Prime Minister Mazowiecki. Later on, the law was amended several times, especially in the period immediately after the entry into the European Union. Consequently, we believe that the instability of the geological and mining law is not conducive to investment. The problem is not only on the side of our country, but is largely due to the changing EU regulations. Therefore, in our opinion it is worth thinking about enacting the geological and mining code, which would not be amended so frequently. It is private investors rather than the State that should have a dominant influence on this sector of the economy - the State should focus on regulatory issues, streamline the functioning of the State administration, confine itself to financing certain activities and geological works. In this matter, we point to major omissions in the last two decades. I think that a great deal of natural resources remain unexploited due to insufficient expenditure on the exploration of natural deposits. Of

course, exploration can well be carried out by private parties, as a licensing system has been introduced both for exploration and exploitation. However, some new problems have emerged that simply did not exist in the past. These are disputes over access to deposits. Several such disputes have been reported: one relates to copper exploitation, the other to coal exploitation in the Lublin Basin, but also in other mines. We suggest that the powers to dispose of natural resources remain mostly in the competence of the Minister of the Environment. Personally, I do not like the idea of merging the energy portfolio with the Ministry of the Environment. In my opinion, the philosophy of the modern State is absolutely opposed to such irrational actions. The Minister of the Environment, represented by the Chief National Geologist, is a trustee of natural resources and should manage them in line with the national natural resources policy. The Minister of the Environment should cooperate primarily with the Minister of the Economy. It should be his responsibility to submit the draft of the natural resources policy upon consultation with the Minister of the Economy and, where necessary, with other ministers. A very important issue is the security of natural resources. The European Union is a major importer of minerals; few of them are mined in the EU countries. In the case of copper, the EU output covers about 50% of the demand, but for the other minerals the figure is incommensurably lower. Over 90% of the rare earth elements are mined in China, and the country has an almost total monopoly on their exports, and they are of crucial importance in high technologies. An important issue is anthropogenic deposits, i.e. minerals sourced as a result of waste processing. A perfect example of recycling, which has been used for many years in Poland, is the recovery of lead from car batteries. The process of recycling waste used in road construction is

The problem is not only on the side of our country, but is largely due to the changing EU regulations. also well developed in Poland. Some 10 million tonnes of waste is currently used for infrastructure investment. In 1996 -2006, about 100 million tonnes of aggregates were derived from waste, mainly coal waste. Another example is the production of synthetic gypsum by desulphurisation of gas emissions in power plants. This allows to combine environmental protection and sourcing elements. •

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Local Government

A quarter-century of local government in Poland Monika Piątkowska, Member of the Board of PMPG Polskie Media SA, former Vice-President of the Polish Information and Foreign Investment Agency (PAIiIZ)

he Local Government Act of 1990 is considered to be the most successful reform implemented after Poland regained sovereignty. Regional institutions, which were created 25 years ago, are today self-sufficient organisms advocating the interests of local people. Local governments have gone a long way in the past quarter-century. They had to learn management and market economy at the same time as the central government did. Tools they initially had at their disposal to build investment attractiveness were poor, especially in comparison with a wide range of support instruments they now offer to businesses. 1994 marked the creation of the first Special Economic Zone. Today, they are 14 throughout the country, and their influence on the development of the regions and the whole Poland is invaluable. SEZs enjoy unfailing popularity with Polish and foreign companies. They constitute a very effective tool of promoting foreign investment in Poland. The premise guiding the creation of the SEZs was enhancement of the regions’ investment attractiveness, leading to a decrease in unemployment and economic revival. The SEZs effectively pursue that important economic goal still today. According to a study by E&Y, in counties where SEZs are located the unemployment rate is lower by 2.3-2.9%, and GDP per capita is up to PLN 2,500 higher than elsewhere in Poland. Additionally, they have a positive impact not only on employment and technological advancement, but also on the development of local entrepreneurship. Companies operating within the SEZs are exempt from the corporate income tax, and in

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some communes also from the property tax. Plots are prepared for investment very well. The SEZs are associated with large international corporations. Close to three fourths of the capital invested in the SEZs comes from six countries: Poland, Germany, the US, the Netherlands, Italy and Japan. It should be emphasised that the exact same investment incentives are offered to both foreign and Polish investors. It is worth mentioning that over the years the SEZs have come to be associated with certain industrial specialities. Legnica and Katowice are dominated by the automotive industry, Mielec is known for the Aviation Valley, in Pomerania there is the ICT Cluster, Wałbrzych is privileged by manufacturers of cars and household appliances, and Warmia-Mazury is a furniture manufacturing basin. Groupings of companies operating in related sectors encourage the formation of clusters and attract further investments in the same sector. In a recent fDi study by “Financial Times,” 5 out of the 14 Polish Special Economic Zones have been classified among the world’s top 50. These include, among others, Katowice, which has been ranked 11th in the world and 2nd in Europe and Łódź - 18th. The following places were taken by Wałbrzych and Pomerania. Investors want to continue business activity as part of the SEZs. It was mainly on their request that the government made last year a crucial decision to extend the zones’ lifetime until 2026. According to previous arrangements, they were supposed to be extinguished by 2020. Extending their existence for another six years will certainly translate into greater investment attractiveness of Poland. It would be useful to consider extending the operation of the SEZs without a timeline

but with a limit stated only in individual permits. Other steps recommended by entrepreneurs are mitigating the conditions to be met by investors to apply for the SEZ status for private plots and shortening the procedure of conferring the SEZ status on private plots, through setting time limits for consideration of applications. After Poland’s accession to the EU, local governments have gained a new impetus for development by carrying out projects co-financed from European structural funds. In the current financial period, local governments will be allocated even higher funds than previously. Only a decade ago, entrepreneurs interested in regional investment were served by PAIiIZ. Today marshals’ offices, cities, SEZs and mayors compete for investors by themselves, not only with other Polish regions, but also at a supra-national level. Opel would not be there were it not for the municipality of Gliwice, IBM would not be there were it not for the municipality of Katowice. Among the reasons for locating investment in Poland are increasingly positive opinions on Polish local governments. Investors praise them for good cooperation. Local governments are managed like companies. In order to be eligible to use EU funds they have to meet a range of requirements and learn to work professionally. Local governments encourage process-like thinking. The major concern of local governments is the life quality of residents, but job creation and competitive economic environment is what has a direct influence on it. Polish local governments represent today European standards. No other institution will take care for the community better than local government. •

Local Government

W e advocate a wide spectrum

of discussio n

Zygmunt Berdychowski, President of the Programme Council, Organiser of the Economic Forum, talks to “Polish Market”. What is the main idea behind the European Congress of Local Governments? What makes it an important event? We want the Congress to become an important meeting place for local leaders and regional elites with government officials, NGOs and business executives. Furthermore, it is supposed to be an opportunity for representatives of Polish and Central European local governments to reflect on how to increase efficiency in using that EU structural funds. We advocate a wide spectrum of discussion: from substantive issues such as local finances to soft topics, like for example the evolution of thinking about contemporary cities and urban life. Indeed, it can be seen that city dwellers are increasingly aware of what they expect from their neighborhood or, broadly speaking, from their city. The profile of its participants makes the Congress an excellent venue to talk about levels of cooperation between public administration, academia, local businesses and foreign institutions. It is worth remembering that it is almost 26 years since the first free local elections in Poland, and that the local government reform was one of the key elements of the plan of Poland’s “return to Europe,” announced by Prime Minister Tadeusz Mazowiecki. In my opinion, it is especially the municipal reform that proved to be a real driver of change. The Congress will therefore provide an excellent opportunity to take stock of what was successful and what needs improving as far as local government is concerned, all the more that pm

it will be inaugurated by President Bronisław Komorowski. Another testament to the importance of the Congress is partnership with the European Committee of the Regions, which is the voice of local and regional authorities in the process of shaping EU policies. Last but not least, I would like to draw your attention to the host city. Kraków is situated at the crossroads of major domestic and European routes. In recent years, the city has seen a considerable business development, with the inflow of new multinationals and expansion of those already established. It is much easier to organise such a meeting with such a strong partner. Is it in local governments that economic development has its source? The years 2014-2020 will bring significant changes in terms of raising structural funds. The successful acquisition of EU funding will be possible thanks to cooperation with external partners, common definition of priorities, sharing of tasks and responsibilities. Local governments of the largest regions will be allocated greater amounts of European money than before. In 2007-2013 approx. 25% of all the resources avaiable to Poland were spent by local governments, now it will be almost 40%. The new budget earmarked for regions provides for urban investment. Cities can apply for co-funding of projects related to revitalisation, environment-friendly transport and low-carbon economy. pm

As important as the level of funding itself is how the money will be used. Investments, like for example, in water parks will bring only short-term effects. Helping local micro and small businesses is of greater significance. We need investments that will catalyse economic development in regions over the next decades. I think that local governments need to consider development not only in terms of infrastructure, namely the construction and modernisation of roads, but learn to think it economically. In a few years’ time, these local decision-makers who banked on the economy may prove to be the winners. Is the Congress intended to develop innovative solutions? Are such events likely to give rise to new ideas or are they only a place for discussion? For 10 years, there have been items related to the so-called new economy on the agenda of the Economic Forum in Krynica. In Kraków, we are going to have a separate thematic track devoted exclusively to innovation. Innovative solutions can be created and, more importantly, be implemented only through cooperation between business, administration and science, which, in my opinion, is still limping along in Poland. Therefore, venues bringing together politicians, business people, academics, and regulators afford by themselves opportunities for creating new solutions. • pm

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Local Government

EUROPEAN CONGRESS OF LOCAL GOVERNMENTS Kraków, 4-5 May 2015

he European Congress of Local Governments will be a platform for the exchange of views, knowledge and experience for local governments’ leaders and regional elites with the representatives of state administration, NGOs and business. The formula of the European Congress of Local Governments will be modelled on that of the Economic Forum in Krynica. The guest of the Congress will be Bronislaw Komorowski, President of the Republic of Poland The regional dimension of European integration is getting increasingly important. Europe consists of its regions and for many European citizens it is shaped by them. The new financial framework of the European Union poses an exceptional challenge to local authorities as the financial means are reallocated from national projects and programmes to the regional ones. To successfully apply for EU funding in 2014-2020 you will need to cooperate with external partners, jointly identify common priorities, as well as share tasks and responsibilities. The European Congress of Local Governments will be a perfect place to discuss new rules of EU funding thanks to broader contacts and interregional cooperation both with the closest neighbours as well as partners from all over Europe. “Strong regional government is the government of involved residents, open and transparent administration, thriving scientific and academic centres as well as local and

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international business,” says Jacek Majchrowski, mayor of Kraków, the city which will host the Congress.” The European Congress of Local Governments is a great opportunity for a discussion about cooperation between those sectors. I hope that the event will not only teach us new and interesting solutions used in other countries, but also allow us, the capital of Małopolska, to inspire others.” Mr Markku Markkula, President of the European Committee of the Regions – the official partner of the Congress, has confirmed his presence in Kraków. The mission and the ambition of the European Committee of the Regions is to make the voice of local and regional authorities heard and taken into consideration in the process of shaping European policies. We are all striving to live up to the expectations of local communities. We want the measures taken at European level correspond to their actual needs. That is why we actively support the European Congress of Local Governments and we see it as a great opportunity to learn about new experiences and hear opinions on the future of the EU. The conference will be held from 4 -5 May 2015, at ICE Kraków Congress Centre. More than 60 events will be held around 4 thematic paths, each consisting of: thematic blocks, panel discussions, workshops, lectures and presentations. The Congress will give an opportunity for regional leaders to discuss ways of increasing effectiveness in using EU structural funds, share experience and make contacts.

Local Government

Draft Agenda: Plenary Session:

The new plan for Europe Europe of Regions – Starting A New Chapter 4 Thematic Paths – selected topics:

Economy:

• • • • • • • •

Revitalisation of Cities and Regions Vision of the Road Infrastructure in Poland till 2020 The Rural Development Programme 2014-2020 –Who Will Gain, Who Will Lose? Development of the Railway Transport in Europe. The Role of Regional Transport and Urban Rail Links How to Strengthen the Investment Attractiveness of Cities and Regions Air Traffic and Regional Airports’ Development Transformation and medical centres restructuring How to Revive the City Centre?

FINANCE:

• • • • • • •

The New Financial Framework of the EU – How to Effectively Spend the Money? Financing of Education in Poland and Europe - Local Governments’ Perspective The new model of local government finance Financing Solutions for Urban Infrastructure Investments and Funding for Local Governments after 2014 PPP – Theory Versus Reality Financing of Ecology in Europe

• •

Control Over local Governments – Irregularities and Good Practices PPP – Best Practices

SOCIETY:

• • • • • • • •

A Local Government Activist or a Manager? How to Administer the Local Government Effectively? Cultural Policy and Economic Development Labour Market. Unemployment – One of the Key Challenges for the EU Health Protection as a Local Government Challenge Cooperation Between Local Governments and Businesses in Tackling Social Problems City State of Mind - Local Authorities as Driving Forces Management of Local Security Digital World of Local Governments

ENVIRONMENT:

• •

• • • • • •

Municipalities with Energy – Local Government’s Purchasing Groups Optimisation of Energy Costs in Local Government Units (Ecological Construction, Low-Carbon Urban Transport, Lighting, Energy Buying, Municipal Infrastructure) Smart Cities and Metropolises of the 21st Century. Future or Reality? How to Effectively Reduce Low-Stack Emission? Effective Waste Management Development of Water Supply and Sewerage Enterprises Renewable Energy – Green Energy in Regions Turning Waste into Resources – Complementary Role of Recycling and Waste-to-Energy

The organizer of the European Congress of Local Governments is Institute for Eastern Studies – the organizer of the Economic Forum in Krynica. ADVERTISEMENT

Local Government

K raków a brand of its own

Inspiring and creative. Vigorous, ambitious and unusual Local and international at the same time. A city that is open to the world and proud of its history – a modern European metropolis W. Majka, UMK

how to support the growth of the economy based on knowledge, innovation and modern technologies, Kraków has great potential to become a model not only for Polish, but also foreign cities. Here, a tremendously important role is played by European funds, which contribute to the sustainable growth of Poland and its cities, including Kraków. Thanks to the city’s dynamically developing infrastructure and tourist offerings, including a huge number of historic buildings, museums, galleries, and restaurants,

W. Majka, UMK

or years, Kraków has consistently built its image of a city that skilfully combines tradition with the challenges of the future. The authorities of the city see the biggest potential in people – committed citizens who participate in the creation of the place where they live, work or study. Thus, the role of local government leaders is to encourage them to be more active. “We want to support the ambitions of Kraków’s citizens by providing a friendly space for them to develop,” says Kraków Mayor Jacek Majchrowski. As a city with an unquestionable historical wealth, wonderful monuments, a magical atmosphere, and which also knows

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the capital of the Małopolska region attracts increasingly more conferences and other large events every year, thus becoming a model of an open city. However, Mayor Majchrowski stresses that people, their needs and their pursuit of personal development are higher priorities than infrastructure, and the urban space and events held in it are only an opportunity. This is how we should perceive the European Congress of Local Governments, which will take place at the ICE Kraków Congress Centre at the beginning

W. Majka, UMK

Local Government of May. “This meeting will be an excellent opportunity to discuss levels of co-operation between administration, science, business and citizens. I hope that we will learn about new, interesting solutions used in other countries, but I also believe that, as the capital of Małopolska, we will show directions of development to others,” says Mayor Majchrowski, adding that it is people who make up the local government. “In order

W. Majka, UMK

to build a strong metropolis, it is not enough to have low-noise environmentally friendly buses making use of digital technologies, satellite technology as a means of traffic management, energy-saving houses, or new sources of clean energy. Obviously, these are essential elements, but only in a technical sense; the real metropolis of the future is created by its citizens ,” he says. This means that Kraków does not focus on investment and the implementation of technology for the sake of technology, but on education in order to ensure that the solutions used are addressed to specific recipients and that citizens can make a conscious choice of projects, applications or initiatives that suit them best and that fulfil their needs. Kraków needs broader and fuller engagement of its citizens in the matters of their city, district and housing estate, which is perceived not as an external living area, but as a space for personal development. Of course, this community-oriented approach must not be fulfilled at the expense of individuals. However, the very fact of living in a city and the actions and processes occurring within it apply essentially not only to an individual citizen but also to larger groups and the municipal community as a whole. ‘Participation is the key to the improvement of the quality of life of citizens and the key to the creation of the city of the future. “If this idea is to be implemented,’ says Mayor Majchrowski, ‘we must ‘prepare’ a field of action together; and here I mean the participation of citizens, representatives of the business world, science and education professionals and city workers themselves.” The European Congress of Local Governments is exactly this kind of new opening, a platform for dialogue and a mutual search for solutions to challenges of the future – and the • future begins in Kraków.

A. Lewandowski, UMK

4/2015 polish market

Dear Sirs, We are pleased to present you a modern medical and nursery facility - the Medical Center "Skałka" in Bukowno. Bukowno is a town located in the vicinity of the Jurassic Landscape Parks, on the river Bu Sztoła, surrounded by deciduous-coniferous forests. Its major asset is the beauty of the river, which flows unregulated, creating picturesque meanders and bends. These charming sights of Bukowno provide an excellent environment to take rest in peace and quiet. Bukowno is well-connected with Kraków and Katowice, as well as with the airports Kraków-Balice and Katowice-Pyrzowice. North of the town there is the expressway 94, and south of the town -the motorway A4 Katowice-Kraków. In Bukowno, public transport is available by buses and minibuses. There is also a train station in the town. The uniqueness of the Medical Center "Skałka" is that it ooers residence for geriatric patients. The Medical and Nursery Centre, the Senior Home, as well the Ambulatory Care Specialist Centre are staaed by doctors from Silesia's and Małopolska's renowned clinics in the following areas of specialisation: cardiology, cardiolo neurology, diabetology, gastroenterology with the endoscopy facility, ophthalmology, laryngology, dermatology, rheumatology, general surgery and vascular surgery, trauma-orthopedic, occupational medicine, dentistry with endodontics, oral surgery and implantology. In addition, "Skałka" ooers its patients a comprehensive rehabilitation treatment using the state-of-the-art equipment. We invite you to join us in a modern facility equipped with the latest-generation equipment and top-notch professionals. For patients from the EU countries, we provide comprehensive dental diagnostics and treatment during 5-7 day stays, as well as diagnostics performed with high-tech equipment by specialists in cardiology, ophthalmology, general and vascular surgery, orthopedics, gastroenterology and other as listed in our ooer. The Medical Centre "Skałka" organises rehabilitation and wellness stays. Modern rehabilitation infrastructure and equipment, combined with accommodation opportunities, make "Skałka" an attractive destination for foreign patients who want to take care of their health and improve their mental and physical condition. "Skałka" can also boast a cosmetology cabinet fitted out with modern equipment for skin and body rejuvenation and beauty treatments. Our Senior Home - the Medical and Nursery Centre ooers residential opportunities for an indefinite or definite period, as convenient for seniors. We provide comfortable apartments for couples and 1,2,3-bed rooms for single persons wishing to spend their autumn years safely, comfortably and with professional medical care. We provide our patients assistance and transportation from the airports in Balice and Pyrzowice, inclusive of the cost of stay. There is also a possibility to organize transport for other places, depending on the number of patients. Krzysztof Ćmiel Bożena Bogajewska-Piętka

www.cmskalka.pl

Medicine

N e w g e n e r at i o n of cochlear implants another breakthrough i n pa r t i a l d e a f n e s s t r e at m e n t

The first implantation in Poland of a new-generation cochlear implant was performed in the Institute of Physiology and Pathology of Hearing in Kajetany, outside Warsaw, on March 3, 2015, the International Ear Care Day. This novel implant is unique as it allows performing MRI scans and thus, in the future, it will allow tracking changes in the brain after the administration of acoustic and electric stimuli. The application of this type of implant in partial deafness treatment is a great breakthrough in modern medical science, enabling the research on changes in the auditory pathway and selected structures in the brain. It opens up new therapeutical prospects, such as detection of tumors, and vascular and posttraumatic lesions in the head. It allows as well lowering the costs of patient management. This breakthrough resulted in launching two revolutionary programmes: •

•

The world’s first scientific programme for the study of the auditory pathway after the implantation of new-generation implants in partial deafness Poland’s first clinical programme for the application of new-generation implants enabling magnetic resonance imaging to allow diagnostic workup in patients with various congenital and acquired head lesions including tumors.

The implantation of the new-generation cochlear implant allows, for the first time in Poland, monitoring changes in the head including following the development or recurrence

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of tumors without the necessity of the surgical removal of the entire implant or its parts before examination and then putting it back in another surgery. In everyday clinical practice this enables launching the new treatment programme “New clinical prospects in Poland after the implantation of the new-generation cochlear implant”. This programme will focus on: • •

•

detection of neoplasms, vascular and posttraumatic lesions in the head, monitoring of tumors after surgical management, chemotherapy or gamma therapy, reduction of treatment costs related to e.g. an additional surgical procedure

of removing the implant before the MRI test. The formerly available cochlear implant did not allow comprehensive monitoring of head lesions and making progress in the treatment. The programme of partial deafness treatment in children and adults started in Poland 23 years ago. On July 16, 1992 Prof. H. Skarżyński performed for the first time in Poland cochlear implantation in a totally deaf patient. This pioneering surgery not only opened new opportunities for thousands of deaf patients in Poland, but was also a symbolical start of the programme on partial deafness treatment in the world. In 2002, Prof. H. Skarżyński performed for the first time in the world, a cochlear

Medicine implantation in a patient with partial deafness, achieving 100% of speech understanding through a combination of electrical stimulation through a cochlear implant in the high frequency range with preserved acoustic hearing in low frequencies. It is worth noting that before the surgery the patient understood only about 15-17% of speech sounds. Then in 2004, Prof. H. Skarżyński performed a similar surgery in a child. To the present day his team has treated with this method almost 2,000 patients with partial deafness, both children and adults, which is the largest such group in contemporary medicine. This surgical treatment is performed following the procedure on 6 surgical steps developed by H. Skarżyński. He published his newest strategy of partial deafness treatment in 2010 . It makes it possible today to compare the results of treatment obtained in different centres and thus to set new directions of research in the treatment of various types of hearing dysfunctions. One of the major problems of the modern world is population ageing. The life-span prolongation unfortunately relates to the diminishment of physical functions, including hearing. Almost three fourths of senior citizens require some kind of hearing amplification. Some of them can use hearing aids. A large group have no benefit from hearing aids and require auditory implantation. For some, a combination of preserved natural hearing with stimulation through a cochlear implant is an optimal solution. Specially designed implants allowing such combination have been commercially available for a considerable time already. We do not fully understand, however, the underlying physiological phenomenon. The newest techniques of studies in imaging may be helpful in finding an explanation for the unique phenomenon of combined electric – acoustic hearing and investigating the mechanism of age-related deterioration of hearing. One of these techniques is functional magnetic resonance imaging (fMRI) During a fMRI examination, the central brain structures, including the auditory pathway, become accessible. However, this technique cannot be used in people with cochlear implants. Therefore we can examine only people with presbycusis, whose ability to communicate deteriorates as a consequence of hearing loss. The study of this phenomenon would bring us significantly closer to the cognition of many processes in the brain, to which access is allowed through the auditory pathway. Among the imaging techniques, the magnetic rezonance perfectly pictures the soft tissues. Taking into consideration the lack of invasiveness of this type of examination, it is an ideal tool to image the central nervous system – the brain. The main suppression of this

The inner-ear implant technique is the exclusion of people with metal implants, pacemakers, prostheses, etc. Some of those objects can be examined in scanners with weak magnetic field. So far, this has been the case with cochlear implants. In currently used hearing implants there are some elements that obstruct the MRI examination in magnetic field of 3 Teslas. A cochlear implant consists of two parts: the internal part implantable under the skin – it comprises a cochlear electrode, sound processor, induction coil and a small magnet, which allows the fixation of the external part of the implant (placed behind the ear slightly over the internal part of the implant). The external part also consists of an induction coil, a small magnet and a speech processor which is placed in a small casing with microphones and a battery. In the new-generation implants, the implantable part is properly protected from the influence of the strong magnetic field of the MR scanner up to 3T. The problem lies in the magnet, which is placed in the silicon pocket in the central part of the induction coil. The magnetic field of the scanner, which goes along the tunnel in which there patient is positioned, forces the small magnet to change its place towards the magnetic field. 3T devices are a standard in many developed countries in the world. In Poland the most popular are devices for the MRI examination of 1.5T or weaker, but the situation is gradually changing and we get more and more 3T devices. The diagnosis of many abnormalities (including cancer or hemangioma) or their monitoring requires frequent examinations and, consequently, surgical removal and reinsertion of the magnet in the case of a traditional cochlear implant. The new-generation implant can endure in 3T magnetic field, which significantly lowers the costs of such diagnosis. The power with which this small magnet is moved is so big that it pops out of its “pocket”, in which it is placed, and can change its position under the skin outside the implant. This could result in the wrong position of the

external part of the speech processor so the implant could not work properly. Therefore, the MRI had to be performed in low magnetic filed of <0.5T, which significantly lowered the quality of the images, or it required surgical removal of the magnet before the examination in eg. 1.5T, and its surgical reinsertion after the examination. As a matter of fact, so far imaging in 3T scanners has been impossible. The new-generation cochlear implants use self-controlled magnets, which, having been placed in magnetic field of the MRI scanner, can turn in its “pocket” towards the main magnetic field of the scanner. This makes the power with which the scanner affects the magnet significantly limited. This solution allows examinations even in scanners up to 3T. Therefore, a patient with this implant can fully benefit from modern MRI systems, without the need of surgical intervention. The magnet will cause some disturbance in the image but only within the limits of 5 cm from the magnet. The strong magnetic field of the scanner still interferes with the cochlear implant being on during the examination and does not allow the performance of the fMRI examination with sound stimulation considering the loud work of the scanner. An opportunity occurs when an electric stimulus is used instead. All technical problems that stand in the way to turn the implant on during the examination can be solved. This is the first programme in Poland that allows monitoring the condition of the head with the new-generation cochlear implant. The new-generation cochlear implants allow performing MRI examinations and, in the future, they will allow tracing changes in the brain after the administration of acoustic and electric stimuli. The first use of those implants in partial deafness treatment at a high level is the first scientific and medical report in modern-world medicine. It is a great breakthrough in tracing changes in the hearing pathway and some structures in the brain. •

4/2015 polish market

Innovation

lekam

one of the fastest growing pharmaceutical companies in Poland

LEKAM L

EKAM Pharmaceutical Company Ltd. is expanding both on the Polish pharmaceutical market and on international markets. LEKAM combines a homogeneous product portfolio, efficient leadership and highly skilled employees, that has allowed the company to quickly gain recognition in the pharmaceutical industry. Presently LEKAM is one of the fastest growing pharmaceutical companies in Poland. A rapid rate of growth in terms of sales and revenues, combined with the top quality of products offered, has turned LEKAM into a phenomenon on the market. After 13 years of existence we became one of the top 10 companies on the Polish pharmaceutical market (based on IMS Data). LEKAM’s products have been honored with prestigious awards granted by both consumers and the medical community. Our product portfolio is made up of a carefully selected Over The Counter (OTC) and Prescription Medicines (Rx) as well as Food Supplements (FS), Medical Devices (MD) and Cosmetics (COS). Our products have been on the Polish market from 2000 and have been exported since 2007. LEKAM has currently a very strong position in many therapeutic fields and sees a rapid growth of production and sales. We have introduced onto the market and have been developing further the following therapeutic areas: • • • • • • •

Psychiatry Cardiology Pulmonology and Respiratory Medicine Urology Gastroenterology Allergology Surgery

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• • • •

Vascular Surgery Oncology/Hematology CNS / Neurology Endocrinology/Metabolism

The essential feature of LEKAM’s products is their high world-class quality. All of the products meet strict quality requirements set by the European Union. Our production methods hold a GMP certificate (Good Manufacturing Practice), whereas the ingredients for our clinical trials all abide by GLP (Good Laboratory Practice) guidelines and Quality Management Systems ISO 9001:2008 and some products meet all the legal requirements for the CE marking. What is more, the dossier of our all medicinal products has been prepared in CTD format (Common Technical Documentation). All of the above has only one goal – to meet the constantly rising demand for LEKAM products. What is more important, each increase in our production capacity goes hand in hand with the introduction of the most upto-date technologies. LEKAM’s production facilities are located in Zakroczym, near Warsaw, the capital of Poland. The production plant together with the commercial office located in Warsaw make up LEKAM. The plant contains the production lines and laboratories to which the company owes its world-class generic medication. All our medicinal products have been developed by our in-house R&D department. Our success is people – their knowledge, experience, talent, creativity and commitment to the company. All of our promotional and informational activities are conducted by a team highly qualified specialists. Presently, LEK-AM employs around 500 people. The company’s employees have always abided by a number of values among which honesty,

credibility, trust, quality and ethical behavior are at the forefront. In the near future we are planning to combine our R&D activities with in-licensing opportunities. This will allow us to deliver many world-class medicines in a short period of time. In-licensing opportunities will enable us to present patients and the medical community, with a wide selection of new products while still developing them in our own dossier. All of LEKAM’s efforts have only one aim – to supply our clients with the best possible products. We are aware that LEKAM would not have been one of the leaders of the Polish pharmaceutical market if it had not been for the top quality medicines offered at very affordable prices. Dynamic development on the Polish pharmaceutical market and a significant increase in the range of products offered, sparked our interest in foreign markets. LEKAM is actively developing the markets in the Middle East, Europe, Asia, Africa, the Americas and Australia. We have Representative Offices and cooperate with many business partners around the world. The Department of International Markets would like to double our turnover • in next years.

For more information please contact: Leszek Rymsza Director of International Markets email: leszekrymsza@lekam.pl tel. +48 22 635 80 41 ext. 506 mobile: +48 503 059 414 www.lekam.pl

Food Industry

M .ŨťŻşŒƊ 4ƢŒ ŒƑť #ŨŒƲƮǄ 'ŒƤƐ o4ƢŒ ŻƑ 1ŒƤŒťŻƨŨp ŻƑ /ŒƏűşǉƗƾ ƮŨƊ ʌʔʍ ʑʌ ʍʐ ʌʔʐ ŲŒǃ ʌʔʍ ʑʌ ʍʐ ʔʒʏ 8ŻƊƊŒ 3ŒƆ -ŻƢƖƾŒ 4ƮƤŨŨƮ ʍʒ 4 /2015 polish market 65

Medicine

We are a very special phenomenon in business and medical terms

Photo: Maciej Sołdek

Paweł Skrzywanek, President of Uzdrowisko Szczawno-Jedlina SA, the company which manages the Szczawno-Jedlina health resort complex, talks to Marcin Haber about the difference between Polish health resorts and spa centres, which focus on relaxation and beauty treatments, and about innovation in the sector and approach to the client. There are over 40 health resort towns in Poland. What does a health resort need to offer to attract clients? Is location the most important factor? For over 20 years now we have lived in a market economy. And the same mechanisms that govern industry, trade and services apply to our health resorts as well. In order to attract patients, what we offer them needs to be attractive – I mean good quality accommodation and services of high quality. The situation is improving with each passing year, but please remember that Rome wasn’t built in a day. The investment neglect in Polish health resorts is so great that it is impossible to make up for it quickly. Unfortunately, we are still attacked by critics who say that treatment provided in health resorts is not medicine and that balneotherapy pm

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[the treatment of disease by baths with the use of underground waters and muds – ed.] and physical medicine are just hocus-pocus. This is why I want to stress strongly that we provide medical treatment to people. Attractive geographic features and climate are extremely important in attracting the client, but we first of all specialize in treating diseases. I do not mean just rehabilitation, with which we are also often wrongly associated. Rehabilitation is a very narrow notion. It is required as a result of a sudden accident so as to bring the person back to a normal condition. Physical treatment in a health resort means treating diseases - increasingly often lifestyle diseases – which are sometimes incurable, but require treatment to extend the person’s life.

This involves treatment for diabetes, respiratory diseases and urinary diseases. These days, natural medicine is popular and when speaking about it we most often refer to the traditions of the East. This is quite funny because we have applied this natural medicine, though perhaps described in a slightly different way, for years. Medicine practiced in health resorts is based on natural stimuli. Underground waters are its main resource. They are used in a variety of forms – as waters for drinking and bathing and waters used as a basis for preparing medicaments of various kind. The second important resource is therapeutic mud, which is used for mud baths. The use of products of nature is the basis for treatment provided at health resorts. This is combined with physiotherapy

Medicine and kinesitherapy, the main areas of post-traumatic treatment. Treatment provided at health resorts is mainly associated with post-traumatic treatment, but this is not true. We provide very modern medical treatment and rehabilitation to cardiac and pulmonary patients. Our health resort has spring waters used in the treatment of pulmonary diseases. We also rehabilitate people after thoracic procedures. It is a very serious problem – patients discharged from hospitals after lung surgeries, including resections, have difficulty breathing. This is why they need us. When the hospital has completed its treatment process it is us who have to give the patient a second chance – teach them something again, strengthen their organism and give them a chance for a decent life after a surgery. After all, we should all want these people to return to work and to their environment. All this sounds like a structure very difficult to manage. Is there room for innovation in the operation of a health resort? Of course, there is a lot for us to do in this respect. There is room here for building a medical base based on waters and natural phenomena of various kind, innovation in the area of pharmaceuticals and parapharmaceuticals, and cosmetology. As I have mentioned, we are often confused with wellness and spa centres. But it is not that we do not want to offer this kind of services at all. If you want to come to a health resort to give rest to your body and mind, but not necessarily to receive medical treatment, we also offer you such an opportunity. We are a very special phenomenon in business and medical terms. I would like to point out that 99% of Polish health resorts are managed by commercial companies on a business basis while most other medical establishments in Poland do not operate in a business environment to such an extent. In health resorts you pay for medical services, which is a topical issue in our public discourse. This puts us in a different position in talks with the Ministry of Health and the National Health Fund. A Medical Tariff Agency was set up on January 1. Its task is to appraise medical services. When we filed an application for such an appraisal with the Agency they informed us that it will be made in 2017. This is unacceptable. We cannot function in this way, waiting two years for an appraisal. Let me stress again that we operate under the code of commercial companies. One should also look at the role of health resorts from a social perspective. Our companies operate in health resort towns. Our patients are the main source of income for most of these towns. When we say Kudowa, Krynica, Szczawno or Ustroń an immediate association with their role as health resorts comes to mind. This is coupled with the development of sports pm

and holiday facilities. Just look at the number of people working in health resorts – 200 to 300 persons on average. If we multiply this by the number of health resorts in Poland we can see that the number of such jobs is very big. And remember about the hundreds of businesses which function thanks to us and provide hundreds of further jobs. In practice, we are large enterprises in these towns. As the president of the company managing the Szczawno-Jedlina health resort, I am one of the largest employers in the Wałbrzych county. When I am invited to official meetings by the mayor of Wałbrzych, for instance, I am treated on the same terms as such big companies as Toyota, Electrolux and Cersanit, which also operate in the area. Few people are aware what it means to manage a health resort. We have to take care of our intakes of water and pay for concessions for its extraction. This is where the difference between health resorts and spa and wellness centres comes from. There are many features which set us apart from each other. All this also requires a thorough legal analysis and we, as the Polish Health Resorts Association, strongly insist on being treated seriously. We deserve such treatment, considering the number of people we employ, the geographic areas we are responsible for and the number of patients we serve. Around 12,000 to 15,000 people receive medical treatment in my health resort annually. The Ustroń health resort provides treatment to as many as 30,000 people. You have mentioned the patients. What is a statistical patient in your health resort like? I am asking about diseases and average age. You have touched upon a problem important from the medical and social point of view. Health resorts are often associated with dancing parties. People used to come to the resorts to dance. And this is still part of the health resorts’ image today. I do not want to deny that. But I want to stress again that what we do first of all is to provide medical treatment. We are aware of demographic processes and want to meet them halfway. Populations are aging. In the past two decades the average life expectancy in Poland has been extended by 10 years. But what about the quality of life of an average Polish pensioner? Unfortunately, it is nowhere near the quality of life of their peers in the West. The reason is that Polish people enter retirement age in ill health. “A Pole now lives longer, but on dialysis,” one can say. Health resorts should be the part of the system responsible for prevention and ensuring, in a systemic way, that Polish people receive medical treatment, rehabilitation and prophylaxis. Why is it so important? The point is to ensure that the state does not have to spend billions of zlotys for treating diseases in their last stages. pm

When the hospital has completed its treatment process it is us who have to give the patient a second chance. Now, to answer your question - of course, it is mainly elderly people who come and will be coming to our health resort. But I want to stress that younger people should also think about us. We would like the health resort system to be based to a greater extent on prophylaxis and rehabilitation. The situation with which we have to do today is strange – when you have an accident you receive compensation and then no one cares about you. This is a huge mistake. Remember that around 30% of heart attack sufferers die in the first year after the attack. Every such patient requires appropriate rehabilitation. If they receive it their chances of survival increase. And this should be our area of activity. There are of course many other areas we would like to benefit from: cooperation with the National Health Fund, insurance companies and the Social Insurance Institution. Another important thing is raising public awareness that it is worth coming to a health resort as a prophylactic measure to improve one’s health and recharge one’s batteries. This is what athletes do. I have recently read an interview with crosscountry skier Justyna Kowalczyk. She says she always goes to a health resort to recuperate after every skiing season. I think many people, for example runners, whose numbers grow rapid• ly every year, should think about it.

4/2015 polish market

Zapraszamy do krainy Księżnej Daisy o każdej porze roku na leczenie, rehabilitację i wypoczynek.

REZERWACJE: 74 84 93 236 / 298 74 84 93 130 (24 h/na dobę) marketing@szczawno-jedlina.pl

www.szczawno-jedlina.pl

Finance

The past and future of the Bank Guarantee Fund Prof. Małgorzata Zaleska, a member of the Board of the National Bank of Poland (NBP), professor at the Warsaw School of Economics (SGH) and vice-president of the Committee on Financial Sciences Polish Academy of Sciences

015 marks 20 years since the Bank Guarantee Fund (BFG) started its operating activity. In the initial period, the Fund’s focus was on the repayment of guaranteed amounts to depositors whose banks have been declared insolvent and on providing assistance to banks which have run into financial problems. Five commercial banks and 89 cooperative banks were covered by the deposit guarantee scheme. In all, nearly 319,000 depositors were affected by a bank insolvency. The total amount of money repaid to them reached almost PLN815 million. For nearly 14 years now no bank has gone bust in Poland, but in 2014 guaranteed amounts, worth over PLN3 billion in total, were repaid to clients of two insolvent credit unions. The

scale of the recent repayments to the credit union clients compared to the money paid earlier to the clients of the insolvent banks illustrates the rapid expansion of the Polish financial sector and growth in the size of financial institutions. It is worth noting that, despite the significant increase in the scale of operations conducted by banks in Poland, their size poses no threat to the stability of the economy – there is no bank in Poland with assets exceeding the country’s GDP. The biggest bank, PKO BP SA, has assets accounting for only around 15% of GDP. As a result, our banking sector is quite well diversified, with the biggest five banks holding around 48% of the combined assets of the sector. Apart from guaranteeing deposits, the BFG also granted 101 loans to banks in financial trouble – 44 to commercial banks and 57 to cooperative banks. The scale of this activity, measured by the value of the funds employed, was larger than the scale of the guarantee activity. The total value of assistance money given to banks was PLN3.8 billion. Most of the money was lent for remedial measures to be taken by the affected banks (PLN2.3 billion) or to sound banks for the acquisition of banks in financial difficulties (PLN1.3 billion). The money the BFG needs for providing assistance and reimbursing deposits comes from levies from banks, which are obliged, for example, to make non-refundable annual contributions. The money that the BFG has collected and not spent on assistance and reimbursements is invested in safe securities. Government bonds account for most of such securities in the BFG portfolio. It should be stressed that before the bankruptcy of the two credit unions the value of the funds collected by the BFG exceeded PLN10 billion, which represented 2% of the covered deposits in the Polish banking system. It was an unusually high coverage ratio compared to

deposit guarantee schemes (DGS) in other countries. A minimum funding level required under the European Union DGS directive is to be 0.8% of covered deposits since 2024. Apart from the two types of operations mentioned and described above, the BFG also conducts analytical activity, with a special focus on identifying bank insolvency risk. The scope of the BFG’s activity and its role will most likely be further expanded. EU legislation provides for the implementation of the bank resolution mechanism. The BFG is to be responsible for the forced restructuring and liquidation of banks in Poland. It will be provided with a wide range of instruments, including the transfer of a failing bank’s assets to a buyer from the private sector or to an organization managing assets. The resolution costs are to be borne first of all by the owners and creditors of the failing bank, which may also be supported from funding contributed by banks. Additionally, the BFG may be entrusted with the task of managing an unclaimed assets fund to which money would be transferred from dormant bank accounts – ones which have seen no activity for 10 years – in all commercial and cooperative banks. The BFG would be investing the money in safe securities until it is contacted by persons entitled to the money. It should be noted that the BFG is one of three guarantee institutions in Poland, the other two being the National Depository for Securities (KDPW), which is responsible for covering investors’ losses on the capital market and has already done so in the case of two insolvencies, and the Insurance Guarantee Fund (UFG), which operates on the insurance market. To conclude, the Polish financial safety network includes guarantee institutions whose operations are largely regulated by EU legislation. •

4/2015 polish market

Finance

Cooperative banks

are needed and have a future Zdzisław Kupczyk, President of Bank Polskiej Spółdzielczości SA (BPS SA), talks to “Polish Market.” What position does BPS SA have in the Polish banking sector? Our bank now has 359 shareholders. We are owned by the cooperative banks which make up our group and we are the largest group of this kind in Poland. We combine the functions of an affiliating bank and a commercial bank. We offer services to cooperative banks and at the same time are their business partner and representative. We specialize in services for local governments, farmers, the agri-food industry, retail sector, tourist sector and small business. pm

formal barriers for us to establish a presence on foreign markets at some point. To ensure security for our clients and shareholders, we give preference to operation in local communities. As banks, we know the needs of these communities very well. Despite the various crises that have affected the cooperative banking sector, our performance is now at least satisfactory – we have managed to avoid major problems. Importantly, we have not got involved in the financial instruments which caused trouble for the institutions which used them. For example? I mean Swiss franc loans. This problem does not apply to us. Clients asked us whether we offer such products. We responded that we offer only Polish zloty-denominated loans, although this meant that the client had to meet stricter criteria than in the case of a loan in a foreign currency. We assumed that if you do not have the financial ability to repay a loan, then you simply do not have it, no matter in what currency the loan is denominated. Otherwise, the whole risk would be passed onto the client. We were telling our clients straight out: Today, a zloty loan is more expensive, but in the long run this may turn out to be a good solutions because the loan is in the currency in which you earn money. This means you avoid the risk of having to acquire a foreign currency on the market and bring it to the bank. pm

BPS SA is one of the two cooperative bank groups that now exist in Poland. There were more such groups in the past. Initially, there were seven groups of this kind, with three groups being in operation until quite recently. Finally, two years ago Mazowiecki Bank Regionalny was taken over by SGB Bank and we now have only two groups. SGB Bank brings together 204 cooperative banks. pm

Are the two groups competing with each other? They have to compete and they do. And this is good, especially as they compete in a civilized manner and this competition is very needed for the development of both groups. It encourages them to be innovative, seek new development paths and contacts with clients, and present their achievements in the market forum. This motivates them to work and act. pm

Do the cooperative banks operate also on foreign markets? Through our clients which pursue their foreign economic policy, we also take part in this process. But we do not have our offices abroad and do not take part directly in the play on financial markets. We operate more locally, within our country. However, there are no pm

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How, in confrontation with the powerful sector of commercial banks, have cooperative banks and BPS managed not only to become established on the market, but also achieve quite decent results? There is a need for various banks, including small and medium ones. These smaller banks are able to cater for the needs of individuals, and small and medium businesses, which also need financial services. Banks with huge assets are not always able to give their attention to pm

local markets. I think that smaller banks will be able to exist for a long time alongside large commercial banks. There should be enough room on our market for all of them. Not all banks want to function in an anonymous environment. We are still at the stage where relations between banks and their clients are really like relations between partners. The clients say so and the banks also have evidence to prove that. The results of these banks are perhaps not that impressive as those of commercial banks, but this is due to the difference in the way they operate – cooperative banks do not have to seek to maximize their profit at any cost and with a high risk. Cooperative banks offer their owners stable growth. This is translated into cooperation with clients, who are sure that their financial partner is predictable – does not change relations with the clients, does not change premises and has a stable management team. I think it is thanks to these traits that cooperative banks have their regular clients. Additionally, even businesses which have expanded while being clients of a cooperative bank remain loyal to “their” bank. The affiliating banks have made a significant contribution to supporting individual local banks – through consortia, and the implementation of new products and services. The banks pursue a common policy adopted by the Council of the Group or the Assembly of the Bank Presidents. There is an educational aspect to the relations between cooperative banks and their clients as well – new implementations and innovation at cooperative banks mean clients need to adjust. pm

To what extent are the banks which make up the group independent? To what extent are they bound by the decisions or common policy on, for example, interest rates on loans or deposits set by the management of the group?

Finance The banks take independent decisions, however, they have to comply with banking law and other regulations and recommendations of the Polish Financial Supervision Authority. This is obligatory. But every bank has the right to pursue its own local policy and set its rules in relations with clients. Still, there are issues which require some unification. For example? The first thing is costs borne by banks, for example, making sure that the banks do not have to promote themselves independently, each spending a large amount of money on that. For this purpose, there is a common promotional fund, to which all the banks in the group contribute, depending on the size of their assets. Money from this fund is spent, for example, on advertisements promoting cooperative banking. Another problem is associated with the law on cooperative banks and affiliating banks. It lists transactions which have to be carried out through the affiliating bank. The prices of these services are calculated in such a way so as not to be too high and not too low to ensure that the affiliating bank does not make a loss on this activity and, on the other hand, that the banks are able to serve their clients properly and in compliance with regulations, without passing the risk of, say, an improperly placed deal onto them. Decisions about all this are taken by the Council of the Group. Additionally, the Council deals with joint systemic solutions. This is where the distinctive green logo shared by all the banks in the group comes from. For new clients this logo is a guarantee that they may expect high service quality. At the Council’s meetings, we also consider together with the presidents of individual banks how to improve the functioning of the group. We share views on the situation on the market and about what the market expects from our activity. We also prepare model solutions: draft regulations for cooperative banks, especially for large banks, but also smaller ones. Of course, individual banks may modify the adopted solutions and adjust them to their needs and capabilities. pm

How do the services offered by individual cooperative banks differ from those offered by typical commercial banks? Clients of typical agricultural banks expect a different approach. In their case, we propose solutions tailored to agricultural production, like solutions meeting the needs of fruit farmers. For example, we have in our group the cooperative bank in Biała Rawska. It is relatively large, with a balance-sheet total exceeding PLN1 billion. Among its clients are many fruit farmers because the bank operates pm

in fruit-growing areas. The bank has adjusted its products to cater for the needs of fruit farmers. It also specializes in products intended for producer groups. I think this is an excellent cooperation and it encourages its participants to create new interesting solutions and to innovate. We do not talk about it a lot, perhaps, but the Roja producer group, for instance, is implementing solutions which really amaze Europe. Another producer group from Biała Rawska has developed a method for cleaning apples with ozone, with the effect being much better compared to washing with tap water. The apples are packed in biodegradable hermetically sealed packaging. They can safely be sold in school shops. Roja, in turn, has excellent solutions for fruit calibration in terms of shape, weight and colour. How do you deal with the problem of agricultural loans – a drop in production profitability caused by adverse weather means the risk that the farmers will have problems with repaying their loans? Does this require additional insurance? Indeed, our clients may use insurance. Many agricultural producers insure their crops or animal production and recover the invested money if the crops or animal production fail. The bank decides whether to have the loan repaid immediately or allow the farmer to restart production and repay the loan at a later date. Our banks have such instruments. They may offer a grace period on the repayment of the principal. In such cases, the repayment of interest is essential because interest rates on such loans, especially on preferential loans, are not high. At present, the number of preferential loans is already quite small because many of pm

them have expired. In the case of loans which are still being repaid, some concessions for agricultural producers may be offered with the approval of the Agency for the Restructuring and Modernization of Agriculture. Also in the case of commercial loans, the banks may apply such measures as the temporary suspension of loan repayment, sometimes even including the repayment of interest. However, the arrears then have to be paid off within a shorter time. If a farmer gets into financial difficulties the repayment of the principal may be suspended for some time to help him. In the long run, such farmers usually become loyal clients and repay their loans. Generally, only 2-3% of loans taken by individuals or firms in this sector are delinquent, with the percentage of those which are not repaid at all being even smaller. It is a very solid and disciplined occupational group. In my view, this sector should receive strong support from the government. Why? Because it is now one of the few sectors with which the state may cooperate and intervene in a very sensitive sphere – the production of food for the whole country. The sector is exposed to changes in economic conditions of various kind. For example, it is only cooperative and affiliating banks that offer loans for restarting production in case of damage caused by a natural disaster. Our cooperation with these clients may be very successful if it results in the banks increasing their assets, while at the same time supporting the areas which require support, and intensifying business activity in the areas which offer untapped potential. But this requires the government to take some initiatives. • pm

4/2015 polish market

Cultural Monitor

In this latest Cultural Monitor we will deliberate on what a hit is, or may be. Maciej Proliński recommends.

Polish Documentary School – Andrzej Titkow– National Audiovisual Institute (NInA) – 2 DVDs

he album contains the most important works of the master of Polish documentary film, who also makes features and writes poems and screenplays. The films selected to make part of this collection tell us about people important for the director’s generation and so different from each other as poet Marek Hłasko and writer and filmmaker Tadeusz Konwicki. His camera has also captured other equally important figures, scientists, artists and politicians, who have become household names for generations of Polish people, like for example Andrzej Bursa, Wojciech Eichelberger, Gustaw Herling-Grudziński and Jacek Kuroń. Are they outsiders? They are to some extent. Titkow meets his protagonists to look for a way towards liberation as he finds in them a familiar sense of alienation. You can sense this very well while watching his films. Titkow likes his protagonists and shows great openness to them. It is thanks to this feature that we have an opportunity to watch all these stories with great attention. Another strong point of these documentaries is that Titkow acts here not merely as a filmmaker, but as a participants – he is not only the director of his films, but also to some extent their hidden protagonist. He does so in a masterly fashion - “noiselessly.” He once said: “I want to remove the camera from what I am doing. I act as if it was not there.” One simply has to know this chapter of Polish documentary film and remember about it.

“Bogowie” (Gods), directed by Łukasz Palkowski – Agora – DVD

his blockbuster, which has attracted more than 2 million cinema-goers and has been showered with the most important Polish film industry awards, tells a story of the early career of famous cardiac surgeon Zbigniew Religa who performed Poland’s first successful heart transplant surgery in 1985. He is excellently portrayed by Tomasz Kot. Having watched the film again on DVD at home several months after it hit cinemas, I must admit it continues to arouse interest from the viewer. It is definitely a film for sensitive people, a film telling a story about people - or even more broadly, a story about Poland - in a truly emotional way. It is a popular film, written and played in an interesting way, or perhaps we should call it simply a good bit of art – a fascinating drama, not stylized and sometimes lyrical. Palkowski shows us how to depict the strength of man at a time of defeat and failure, which after all promise success in the future and even make part of this success.

Natalia Kukulska – “Ósmy plan” (The Eighth Plan) – Warner – 2 CDs

atalia Kukulska is one of the best known Polish singers. She has already recorded seven solo albums, most of which have gone gold or platinum. “Ósmy plan” is her latest album. She worked on it with her husband Michał Dąbrówka, a well-known drummer. The two compose music together and Natalia also writes lyrics for these songs. The couple, fascinated with electronic music, seek interesting solutions not typical of pop music. These include interesting song forms and instruments. The first disc is dominated by electronic music. The second features different versions of several compositions from the first disc arranged by Atom String Quartet.

Komeda in Polish Radio – Vol. 4 – “Sophia’s Tune” – Polish Radio – CD

rzysztof Komeda Trzciński is the most famous Polish jazz and film music composer. His compositions have won world renown. One of the most outstanding representatives of “Polish jazz school,” Komeda wrote music for over 60 Polish and foreign films in a matter of only 11 years. He exerted a great influence on modern Polish and European music. He died in Warsaw in April 1969. “Sophia’s Tune” is a continuation of a music journey across archival recordings of his compositions from Polish Radio’s library. The compositions, recorded by Polish Radio for its needs, were originally not meant to be released as albums. Volume 4 features an unusually interesting material recorded at Jazz Jamboree Festivals in 1963 and 1964. Komeda, a pianist, played then with such musicians as saxophonists Tomasz Stańko and Michał Urbaniak and drummer Czesław Bartkowski. The title composition “Sophia’s Tune” is dedicated to his wife Zofia. Others, like “Repetition” and Svantetic,” are highly valued pieces over 10 minutes long which the artist wrote at the peak of his artistic powers. These compositions have a very open structure. Some of them are merely outlines, which may be filled with improvisation. It is another intriguing volume, combining formal experiments, an unusual atmosphere and musical spirit.

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Cultural Monitor

Cultural Monitor – April 2015 “Warsaw Philharmonic Archive: The 1st Concert 1955” – Warner – CD

he first concert in a new Warsaw Philharmonic hall, rebuilt after wartime damage, was given on February 21, 1955. On this day, the name of the Philharmonic was turned into National Philharmonic. The orchestra, conducted by Witold Rowicki, played compositions by Moniuszko, Szymanowski and Lutosławski. The soloist was 26-year-old Wanda Wiłkomirska, who is now the most famous Polish female violinist. The album marks the 60th anniversary of the concert. For me a real gem among the compositions is Karol Szymanowski’s Violin Concerto No. 1. His work is of great importance not only as an achievement of an individual, but also from the point of view of contemporary Polish music. What sets this Polish composer apart from other European composers of that time is his unique sensitivity, his ability to render subtle shades and the variety of the harmonic material.

Mark Knopfler – “Tracker” – Universal – CD

t will soon be 40 years since the release of the first album of Dire Straits. Mark Knopfler, a man behind the band’s success, songwriter, composer, guitarist and singer, has made music which does not fit into neat categories, a music beyond time and current trends. His music, strongly rooted in the rock-and-roll tradition of the 1960s, strikes a balance between subtlety and simplicity. One can clearly hear the influence of Chat Atkins and J.J. Cale in Knopfler’s guitar compositions, but despite these inspirations, each of his albums reflects the artist’s enormous individuality, intelligence in transposing simple motifs, and very personal interpretations of classic phrases drawn from country, blues and rockabilly music. His lyrics have always been dominated by love and fascination with various embodiments of femininity. This is also true of “Tracker,” which is probably his most balladic and personal album. I have never been a very great fan of this artist, but I like listening to his music and voice. The older I get, the more I like this music.

Gallery: Master of Portrait Painting

he 150th anniversary of the birth of Olga Boznańska (1865-1940) on April 15, 2015, has become an inspiration for a public presentation of works of this artist, one of the most highly valued Polish and European female painters. The exhibition, whose honorary patron is Poland’s First Lady Anna Komorowska, will be open to the public until May 2, 2015. A great advantage of the exhibition is that it contrasts Boznańska’s paintings with masterpieces of such artists as Diego Velazquez, Édouard Manet, Eugène Carrière, Henri Fantin-Latour and Édouard Vuillard, and with Japanese woodblock prints to show her works from a broader perspective of world art.

Cinema: “Body/Ciało”

Olga Boznańska, “A Girl with Chrysanthemums” Photo: National Museum in Warsaw

ałgorzata Szumowska’s latest film, which earned her the Silver Bear award at the film festival in Berlin this year, tells a story about relations between a prosecutor (Janusz Gajos) and his daughter (Justyna Suwała) who suffers from anorexia. The two try to come to terms with a tragic death of a person they loved. One day, the daughter’s therapist (Maja Ostaszewska) tells them that the deceased has contacted her from the beyond to say she has a message for them. This forces the prosecutor and his daughter to reconsider their views on life and death. The film begins with a “somersault”, just like Fellini’s “81/2”. Then, this simple story may bring to mind contemporary Austrian cinema. But it ends, which may be a surprise to the director herself, with a beautiful and edifying moral.

Theatre: “Mamma Mia!”

Photo: Kajus W. Pyrz / Roma Theatre

irector Wojciech Kępczyński has just brought the phenomenon of the Abba band on stage at Warsaw’s Roma Music Theatre. Is it a success? Since its premieres in London in 1999 and on Broadway in 2001, the musical “Mamma Mia!” has already been staged in 16 languages. Time has come for a Polish production. I think it is Abba’s immortal and popular hits that make the musical a success, irrespective of the language, plot, staging concepts or cast. Those who have seen “Cats,” “The Phantom of the Opera” and “Peter Pan” at Roma Music Theatre may say that “Mamma Mia!” is the poorest ever musical staged by this theatre. But this does not change the fact that it is still a great fun. 4/2015 polish market

Culture

Source of social development for 90 years now Andrzej Siezieniewski, President of the Board of Polish Radio, talks to Maciej Proliński. We are holding our meeting at a time of mass strikes staged by a range of occupational groups, which shows clearly what a poor country we are. But the sphere of culture, the creative industry, has not exactly been pampered over the past two decades when it comes to finances, has it? Can you imagine a “strike” by artists or public service media people, like for example public radio going silent? I can speak about my community. I mean the radio community or, more broadly, people from public service media, which are an important part of a democratic country’s infrastructure. First of all, one should remember that the public service media are not organizations whose goal is to generate an adequate rate of return to investors. The public service media are institutions which perform tasks given to them by the legislator, which in fact means society, and are expected to carry them out on behalf of society and for society. It is hard for me to imagine the public service media being forced – because of insufficient interest from the state to remind the authorities about themselves in such a drastic form as silence on the air. Our activity is targeted at the whole society and is an element of society’s conscious existence. Our duties include informing the public, explaining developments, educating, providing entertainment, promoting Polish and world culture, and supporting national culture by, for example, recording works of Polish artists. And there is yet another important duty one can mention here – being a “transmission belt” between society and the state and signalling issues that are important for people. Speaking about the public service media and their role, it is worth mentioning the public service media declaration of the European Broadcasting Union announced in 2012. The declaration reminds pm

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the governors that they should take care of the public service media because they are a common good, a piece of infrastructure of every democratic state. pm “We

live at a time when the aristocracy of the intellect has to influence the quality of social life and public debate. A better world is created through the media, mainly public service media,” Eryk Mistewicz, a well-known Polish media expert, said recently commenting on the development of the media, mainly public service ones. Can commercial media play this role? I am not an opponent of commercial media. However, one should remember that they are profit-oriented and select the instruments to influence the audience which guarantee a return on their investment. In contrast, the public service media pursue a mission, which means we have to be guardians of values and shape public tastes. I would say, a bit grandiloquently perhaps, that we are the mainstay of the state. The term public service media came into use in Poland with the emergence of commercial radio and television broadcasters financed from private sources and not dependent on public money. It is impossible to imagine public service media being financed on a market basis so I have to ask you about a media law. Why have we been unable for so many years to simply adopt one? I would like to know that, too. I agree with the view that the licence fee on public service media is anachronistic. The registration of radio and TV sets made sense in the past, but there is no justification for it today. The Internet, tablet and mobile phone are new tools used today to access content, including pm

that produced by public service media. Therefore, it is necessary to take into consideration the technological changes which are taking place. The Germans and Swiss have already done so. By doing away with the licence fee and replacing it with a broadcasting levy, they have adjusted the forms of their broadcasting media’s existence to the requirements of the present time and ensured that public broadcasters would be able to perform their duties. I believe that Poland will soon adopt such a law and the system of funding for public service media will finally be put in order. Unfortunately, this will certainly not take place this year. Polish Radio is one of the most reputable Polish institutions. Could you tell us about the plan for its 90th-anniversary celebrations this year? We have just started these celebrations. Poland’s first radio programme was broadcast on February 1, 1925 from the broadcasting station of the Polish Radio Engineering Society in Warsaw. The wavelength was 385 metres. It was a test programme and a groundbreaking technological experiment. It preceded the establishing on August 18, 1925 of the Polish Radio company. To mark our 90th anniversary, we plan a number of celebratory events. They were inaugurated by the symposium “90 Years of Polish Radio. Achievements and Prospects” on February 3. Speeches by media specialists – Ryszard Miazek, PhD, president of Polish Radio in the years 2000-2002, Prof. Janusz Adamowski, chairman of the Supervisory Board of Polish Radio, and Jan Dworak, chairman of the National Broadcasting Council (KRRiT) - filled the programme of this official meeting. The speakers summed up Polish Radio’s achievements over the years, and presented prospects and opportunities for the further development of radio broadcasting pm

Culture

All Polish Radio channels have already prepared special broadcasts about our rich history. in Poland. Polish President Bronisław Komorowski, who is the chairman of the Honorary Committee for the Celebrations of the 90th Anniversary of Polish Radio, graced the event with his presence. The Committee is composed of 61 outstanding personalities in Polish culture, science and politics. The inauguration of the celebrations of the 90th anniversary of Polish Radio was preceded by a ceremony of great importance for us – naming the conference room after Zygmunt Chamiec, a pioneer of radio broadcasting in Poland and the first director of Polish radio. This event emphasized the continuity of our institution. We want the gala event in the Grand Theatre in Warsaw on April 21 and the gala concert at the Polish Song Festival in Opole to be the climax of the celebrations. It should be remembered that it is people from the radio industry who have come up with the idea to hold the Opole festival. The first festival was broadcast exclusively by Polish Radio. The symbol of the 90th anniversary of Polish Radio will feature on many albums released on the occasion. Also, numerous radio programmes, including the “Well Said Stories” series, will mark the anniversary. All Polish Radio channels have already prepared special broadcasts about our rich history. To sum up: it all promises to be very impressive and has already given us a good reason to be proud of ourselves. pm

You were one of the people behind the initiative to start the process of building digital radio in our country. After years of waiting, Polish Radio has gone it alone in picking up the gauntlet of digital broadcasts in DAB+ technology. It is a costly

undertaking, but contributes a new added value in the form of technical quality, new programmes, and text or even image transmission. At what stage in this process are you now? One of the slogans of our 90th anniversary is that we are a leader of change, including technological development. We have been consistently introducing the DAB+ signal in successive parts of Poland. The gradual expansion of the digital radio coverage is a key element in the technological development strategy of our company as a modern public service medium. First of all, digital broadcasting creates enormous opportunities for Polish Radio to fulfil its tasks much better. Let us remember that two channels of Polish Radio – Channel Two and Channel Four – although nationwide by definition, are actually not at all nationwide because the first one is available to only 70% of Poles and the latter to a mere 30%. This situation can only be remedied with digital technology because there are no more analogue frequencies available. Another issue is the quality of the radio signal received. Thanks to DAB+, we can have a sound signal without interference, which is especially important when broadcasting concerts, for instance. And of course it enables providing many additional services now unavailable to the listener. The first multiplex with our nationwide channels was launched on October 1, 2013. At the beginning of 2015, the DAB+ system in Poland covered 56,100 square kilometres, or 17.9% of the country’s territory, and 15.7 million people, or 41.3% of the population. The range is to be expanded in successive months of 2015. After Warsaw, Katowice,

Szczecin, Wrocław, Łódź and Opole, digital radio broadcasts can now be received also in the cities of Gdańsk, Kielce, Kraków and Poznań. All Polish Radio channels – Polish Radio One, Two, Three and Four, Polish Radio External Service, the Polish Radio 24 news channel and the Rytm music channel are available in these cities in the DAB+ system. The last two channels are available exclusively on the digital platform. Some of our regional radio stations – based in Wrocław, Szczecin, Katowice, Warsaw, Łódź and Opole - also broadcast in the digital system. We are going to launch soon a unique digital channel for children and their parents, Radio for Children. We also plan a channel for seniors and the Eureka educational channel. With our “production apparatus,” including an excellent team of journalists, we are able to manage this task. The ambitious plan is for the digital signal to cover the whole country by 2020. Until that time we will not be seeking to switch off the analogue signal. Could you tell me: When and where do you listen to the radio and for how long? Do you listen only to “your own” radio stations? “Patriotism” would require me to say that I listen exclusively to the public radio. But, of course, I also listen to the competition. I certainly do it for several hours a day. When I drive to work I turn on the radio. In the case of “my” radio, I check whether the mechanism I manage operates efficiently enough. In my home, the radio is on all the time. My wife and sons, we all listen only to the public radio at home and, let me stress, it is not • because of any pressure from me. pm

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Culture

Prince Józef’s

apartment Apartment of Prince Józef Poniatowski, Bedroom / Photo: P. Kubiak

The restored interiors of the Apartment of Prince Józef Poniatowski in Pod Blachą Palace opened to visitors in 2011. They make part of the permanent exhibition of Warsaw’s Royal Castle. We recommend the visit to everyone interested in the Napoleonic period. Maciej Proliński

rince Józef Poniatowski (1763-1813), a Polish general, minister of war and commander-in-chief of the Polish armed forces in the times of the Duchy of Warsaw, received Pod Blachą Palace from his uncle, King of Poland Stanisław August, in 1794. But it was only four years later that he moved in. He lived in the palace with his sister Maria Teresa Tyszkiewicz and his friend Henriette de Vauban. The home of the nephew of the last king of Poland was called at that time Warsaw’s premier salon. The original furnishings of the prince’s apartment were sold by his sister after his death at auctions throughout Europe. The objects that are now displayed in the interiors come from the same period and have been collected by the Royal Castle for many years. They were bought, donated or loaned from the Ciechanowiecki Collection Foundation, Teresa Sahakian Foundation, National Museums in Warsaw and Wrocław, Military Museum in Warsaw and Łazienki palace and park complex. The valuable collection of prints, paintings and documents displayed in the interiors, dated to the times of the Duchy of Warsaw, is a donation of Krystyna Zachwatowicz and Andrzej Wajda. Several mementoes associated with Prince Poniatowski were also donated by Hubert Andrzej Willman. The restored

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apartment of Prince Józef Poniatowski is composed of seven rooms situated around a central staircase on the first floor of the palace. The renovation of the palace, adjusting it to contemporary exhibition and educational requirements, was carried out in 2005-2008. The restoration of the Apartment of Prince Poniatowski marked not only the end of works designed to restore Pod Blachą Palace but also the end of the long process of rebuilding the whole complex of Warsaw’s Royal Castle. The official opening of the new exhibition in the presence of Polish President Bronisław Komorowski in 2011, soon after Poland assumed the presidency of the European Union, was a special contribution of the Royal Castle to cultural activities associated with the Polish presidency. “We conducted the reconstruction of the Apartment on the basis of account books from the first decade of the 19th century, an inventory of the prince’s property of 1814 and measurements made by outstanding Neoclassical architect Wilhelm Henryk Minter,” says designer Katarzyna Jursz-Salvadori. “In the case of one of the rooms decorated with the arabesque paintings discovered in the interwar period, we had a black and white photograph. We determined the colour of other rooms on the basis of a surviving contract

between architect Stanisław Zawadzki, who renovated the apartment for the prince, and painter Tomasz Świerczewski. The contract includes such expressions as “berblau” bedroom – blue with a bilberry tint- and green parlour with a tinge of an unripe apple. The interiors are filled with furniture and works of art collected by the Castle for years as donations, purchases and loans. A significant part of them are objects from the Ciechanowiecki Collection Foundation and Teresa Sahakian Foundation. The exhibition features mainly objects made after the prince’s death and refers to the later, heroic period in his life when the parlour and boudoir in his apartment were replaced with the offices of adjutants and staff officers. We have reconstructed, for example, three fireplaces, carved in marble by Paweł Pietrusiński, one tiled stove and painting decorations. After the Second World War the palace, rebuilt according to Marian Baran’s design, housed ordinary offices, additionally divided with partition walls into little rooms.” She adds that the reconstruction of the interiors was the final stage in the process of rebuilding the Royal Castle in Warsaw. “Now only the royal gardens are waiting to be brought back to life,” she says. •

Culture

The new media is a means and not an end Zofia Gołubiew, Director of the National Museum in Kraków, talks to “Polish Market” about the 2015 exhibition plans, availability of culture and a modern approach to museology.

From 1 February 2015 school children and students under 26 years of age are welcome to a number of cultural institutions, including the National Museum of Kraków, for a symbolic 1 zloty. This is part of the project “Contemporary Art for 1 zloty,” which is an important element of the programme “Available Culture” implemented by the Ministry of Culture and National Heritage. The aim of the programme, which is an initiative of Minister Małgorzata Omilanowska, is to remove competence and financial barriers in access to culture. What is your take on that? I do appreciate the Ministry’s initiative because it has been my dream for years that museums in Poland will one day be accessible for free. I believe that, in so far as they are maintained with taxpayers’ money, museums should be available to them free of charge. For now, however - for various reasons - it is impossible, but it is another story. Still, I think that such gestures from the Ministry and some museums - we had a similar project, too - bring us closer to my dream. This is all the more important that the project concerns children and young people, the future generations. pm

The National Museum in Kraków, as a brand, with its numerous programmes, has become undoubtedly a very attractive spot on the map of leading cultural institutions, not only in Poland but also in Europe. What are the most important challenges you are facing today? The most important and permanent challenge is to maintain a high profile brand and attractiveness. We must continue our programmes, but also liven up our offering. It has pm

been a while since we have conducted a project called “Open and Friendly Museum.” It consists of a number of elements: arranging cafes, relax corners, assistance to individuals with disabilities who want to visit the museum. We are also organising unusual, I would say contextual, exhibitions such as those devoted to Olga Boznańska or Maks Gierymski. The museum is also open to other fields of art, such as film. For example, Stanley Kubrick’s exhibition has recently attracted great interest. Furthermore, we are running the project “Music in the Museum” aimed at hosting concerts, especially in the “Atma” Karol Szymanowski Museum in Zakopane, which is our branch. The most serious challenge in terms of investment is renovation and modernisation of the Main Building. This is an enormous challenge, I would even say, an epoch-making one. It goes together with the programme challenge. In a new building redefinition will be necessary of what and how to show, because the present displays are beginning to be a little obsolete. Yet another challenge is to build the Conservation and Warehouse Centre, which will be separated from the Main Building of the museum. The project involves the construction of a highly energy-efficient building in which artifacts from many Kraków’s museums will be kept and preserved. This begs the question of how museums work today. Do they need to be interactive and more attractive to visitors? Museums, and not only ours, have changed a lot. I must admit that in many respects we were precursors and we were pioneering certain actions. Museums’ main tasks evolved. The underlying function invariably remains pm

to maintain art collections for future generations, but the approach has changed. Museums must be attractive, friendly – hence our slogan “Open and Friendly” – and make use of the new media. Yet, it should be kept in mind that the new media is a means and not an end. Talking about the use of the new media, I mean, for example, multimedia presentations incorporated into exhibitions or digitisation which has been under way for a couple of years. And what are the most important events, resounding messages the National Museum in Kraków would like to get across in 2015? Let us perhaps add that it has been a very good time for Olga Boznańska since the beginning of the year. We have already mentioned the exhibition dedicated to Olga Boznańska. I am very happy that it came to fruition, as it was my dream for years. We worked on it in Kraków for the past four years. It was our brainchild. We lent it to the National Museum in Warsaw, and it turned out that the exhibition is even more popular there than it was in Kraków. I am very happy that it has been so well received by the audience in Warsaw. In mid-2015 we will stage a major exhibition under the name “Ottomania: The Ottoman Orient in Renaissance Art,” which will show how the Ottoman Empire influenced the Renaissance in Europe. A number of European works that have never been in Poland so far will be brought to Kraków. This is the aftermath of a major research project carried out in collaboration with the Kunsthistorisches Museum in Vienna and with Brussels. The exhibition has already had its premiere in Brussels, it will move to Kraków in June. You are • welcome to visit it! pm

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Adès’s chamber opera

premieres in Warsaw In May, contemporary opera lovers must not miss an important premiere in the Teatr Wielki – Polish National Opera in Warsaw – Thomas Adès’s “Powder Her Face” directed by Mariusz Treliński. Adès is almost absent from Poland while his career as a composer is among the most dazzling on AngloSaxon stages in the past quarter-century. Treliński is one of the best known opera directors in Europe. We will have an opportunity to see the result of his first meeting with Adès’s work on May 9, 2015. Maciej Proliński

ariusz Treliński is returning to Poland and Warsaw on the tide of international success. The premiere of his double bill consisting of “Iolanta” by Peter Tchaikovsky and “Bluebeard’s Castle” by Bela Bartók was staged in the Metropolitan Opera in New York on January 29, 2015. Both operas were conducted by Valery Gergiev. It was Treliński’s New York debut and the first co-production of Teatr Wielki – Polish National Opera and the Metropolitan Opera. American critics received the debut of the Polish director enthusiastically. Polish soloists Anna Netrebko and Piotr Beczała also got an ovation. And Director of the Metropolitan Opera Peter Gelb has already asked Treliński to direct “Tristan and Isolde” for the opening of the 2016 artistic season. “Iolanta” & “Bluebeard’s Castle,” an important work and perhaps the best ever production of this director, was billed as a thriller resembling Kubrick’s “The Shinning.” But I saw it more as a message similar to that of Hans-Jürgen Syberberg, one of the most original film directors, who draws inspiration from Wagner’s work. The music of Thomas Adès, a British composer called a successor of Benjamin Britten, has been almost absent from Polish theatres and concert halls. Born in 1971, Adès studied at Guildhall School of Music and Drama, and at

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King’s College in Cambridge. He recorded most of his compositions for the EMI record company, with which he has a contract as a composer, pianist and conductor. His operas earned him great recognition across the world. The first one, “Powder Her Face,” commissioned by the Almeida Opera for the Cheltenham Festival in 1995, was staged in many countries and filmed for television by Channel Four. It is available on DVD and CD. The second opera, “The Tempest,” was commissioned by the Royal Opera House and premiered there to critical acclaim in February 2004, followed by productions in Copenhagen, Strasbourg, Santa Fe, Frankfurt, Lübeck and in New York in 2012 where it was produced by Robert Lepage. It was broadcast to over 1,800 cinemas in 55 countries. Adès is now working on an opera based on Luis Buñuel’s famous film “The Exterminating Angel,” commissioned by the Salzburg Festival, Royal Opera House and Metropolitan Opera. The plot of “Powder Her Face” revolves around the figure of Margaret, Duchess of Argyll (1912-1993), remembered for a controversial divorce case initiated by her aristocratic husband in 1963 after she had been photographed in a bathroom of her home on Upper Grosvenor Street naked, except for a three-strand pearl necklace, in an unambiguous situation in the company of two men.

After 30 years of living as an icon and object of adoration for mass media, her aristocratic reputation was ruined completely. The scandal was publicized, the photographs were used as evidence in the divorce case and the names of her 88 lovers started to come to light, including members of the royal family, Hollywood stars and businessmen. Among them was probably then Defence Minister Duncan Sandys. He is believed to be “the headless man” featuring in a picture with the naked Duchess – headless because the photograph does not show his face. This chamber composition, in the spirit of Kurt Weill’s cabaret operas, has all the hallmarks of the brilliant British composer’s music: harmonic sophistication, formal aptitude and inexhaustible invention in juggling with musical conventions. A well-known American music critic, Richard Taruskin, describes Adès’s music as “painterly” rather than “narrative” in the way it achieves atmosphere and meaning through “outlandish juxtapositions of evocative sound-objects that hover, shimmering, or dreamily revolve, in a seemingly motionless sonic emulsion. I know of no other music quite like it in these defining respects, but many paintings, by Dali, de Chirico, Magritte. Mr. Ades himself seems to ‘see’ his music rather than hear it.” (The New York Times, Dec. 5, 1999)•

W e keep

investing i n our development

Aleksandra Defitowska, Director of the Advertising Products Department at Wittchen, talks to Maciej Proliński.

Over the 25 years of its existence, Wittchen has won numerous awards and has been appreciated by consumers and experts as one of the best Polish brands. According to a study by KPMG, Wittchen is cited by Poles alongside such prestigious manufacturers as Louis Vuitton or Gucci. How did you make it joining such an exclusive club, and, most importantly, being part of it for so many years? From the very beginning, Wittchen’s hallmark has been the product and its history. The business idea was born from a passion for travel: Jędrzej Wittchen, a recent graduate of geography at the University of Poznań, went to remote Malaysia. In order to raise funds for further travels, he bought at a local market a few leather wallets and bags and brought them to Poland just before Christmas in 1990. The stuff was sold at a large profit, actually snapped up. He then thought leather can be an excellent business and ordered the first batch at a Malaysian manufactory. That is how it started. Rapid economic changes of that time created a certain image of prestige and luxury. Poles loved everything from the West and the name of the owner perfectly came along with that Western mainstream. The company’s name was often pronounced in English or German, and so the brand was associated by many consumers with Western quality and prestige. Thanks to this, the young Polish company, already at the start, seemed much larger than it really was, though we never pretended to be a foreign company. pm

century, greater importance is now given to the product’s origin and quality. That is why for years we have emphasised the Polish character of the brand and we are happy to take part in competitions promoting Polish companies. For us, the most important thing is the quality of the product and, therefore, we often turn abroad to get supplied. Leathers are imported from the Mediterranean region, and silk linings from Japan. An important characteristic of our products is a distinctive logo, designed by Jędrzej R. Wittchen and featuring his initials. This elegant symbol of the brand is a promise of quality and luxury, a promise that we strive to fulfill at every stage, from production to contact with the customer. Over the years, we have built a sustainable supply chain based on trusted subcontractors and suppliers who understand our approach and help us fulfill the promise of the brand.

managers and successful people who wore classic, dark suits, forcing us to stick to that stiff style with our briefcases, handbags and accessories to meet their expectations. Our products were elegant, but still very classic. Now this is changing. Our customers dress more casually, and we offer them new types of leather and designs that suit their tastes and expectations. Younger customers, the Generation Y, are no longer as conservative as the Generation X was at their age. That said, classic still takes pride of place in our line. The spring-summer 2015 season will be dominated by powder-pink and other pastel colours. Most importantly, each of our customers will probably find in our new collection not only a fantastic handbag, but also beautiful shoes in latest designs, like glitter stilettos, neon and pastel pumps, a variety of moccasins or jazz shoes in very interesting colours and designs. I invite you to our shops for more details!

Is high quality itself enough to convince customers to buy a good but more expensive product? Often customers are primarily guided by the price and, for various reasons, choose a cheaper product. However, as a wise proverb says, poor people cannot afford cheap things. Cheaper products are mostly of low quality, while our wallets are used for 10 or more years. It is this wear resistance that earns us a reputation among many consumers.

You are peeping at your competition, aren’t you? I would refine the question by stating how many companies would like to position themselves as our potential competition. It often happens that “our competitors” peep at us and at our strategy. We would like to follow the best. A recent report by KPMG shows that Polish consumers regard Wittchen as a luxury brand, placing it second right after Louis Vuitton, ahead of brands such as Gucci or Prada. We find it an honour but also a signal that customers expect high-quality products and original design. And coming back to your question, we have carefully developed a strategy of increasing our market share and ensuring our regular customers are satisfied. Consequently, we could not blindly follow the companies whose goals may differ significantly from our own. •

How would you define innovation as represented by Wittchen? What can be found in the latest collection? A new design? New products? Any special product lines, perhaps promotions? What is that new design like? We keep investing in our development by changing both products and the way they are distributed. Once our customers were mainly pm

Today, it is certainly not enough to distinguish itself. Over time, Poles have grown out of the fashion of indiscriminate buying everything which is western. After western companies massively transferred their production to the Far East at the turn of the

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Chemical Industry

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Food Industry

aweł Pawlikowski was born in Warsaw in 1957. He moved from Poland to Britain when he was 14. He studied literature and philosophy in London and Oxford. He started making films at the age of 30 when he appeared in Community Programme Unit, a BBC programme for young filmmakers. His film “Last Resort,” a turning point in his career, won many international awards. It was shown in 2000 at the Venice festival. The film earned Pawlikowski the BAFTA award for an outstanding debut in British cinema and an award for the best British film at the Edinburgh festival. Among the films he has made so far is also the docudrama “Twockers” and awardwinning documentaries: “Serbian Epics” and “Dostoyevsky’s Travels.” “Ida,” produced by the Opus Film studio based in the central Polish city of Łódź, is Pawlikowski’s first Polish (Polish-Danish, to be exact) production. It tells a story of a novitiate nun who learns that she is Jewish and that her aunt is a Stalinist prosecutor. The plot – simple, although contending with the complex and painful Polish-Jewish history – is told in a clear language. In visual terms, it is truly moving. The director shows he is a master of insight and a master of contemplative cinema, with long sequences where nothing seems to be going on. Interestingly, these “empty places” do not disturb the meditative character of this picture. They encourage the viewer to look critically into themselves and ask the universal and simple questions, like for example: “Who are we?,” “Where do we come from?,” and “Where are we?”. Agata Trzebuchowska, for whom “Ida” is a film debut, and Agata Kulesza, one of the most popular Polish actresses these days, play the leading parts. Critics also praise the outstanding work of the film’s cinematographers Ryszard Lenczewski and Łukasz Żal. The cinematography is one of the hallmarks of “Ida,” as well as a product of creative symbiosis with the director. One should not forget to mention the music for “Ida,” composed by Danish composer Kristian Eidnes Andersen. He is known as a composer of music for many films by Lars von Trier, including “Antichrist,” “Melancholia” and “Nymphomaniac.” Ida is the first Polish film to receive an Oscar for the best foreign language film, but as many as nine Polish productions were previously nominated for the Academy Award in this category: Agnieszka Holland’s “In Darkness” (W ciemności, 2011), Andrzej Wajda’s “Katyń” (2007), “Man of Iron” (Człowiek z żelaza, 1981) and “Maids of Wilko” (Panny z Wilka, 1979), Je r z y A ntc z a k ’s “Ni g ht s and D ay s” (N o c e i d n i e, 19 75),

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Andrzej Wajda’s “The Promised Land” (Ziemia obiecana, 1975), Jerzy Hoffman’s “The Deluge” (Potop, 1974), Jerzy Kawalerowicz’s “Pharaoh” (Faraon, 1965) and Roman Polański’s “Knife in the Water” (Nóż w • wodzie, 1963).