The Polish agricultural marketing system: A policy perspective on developments

Polish transition to a market agriculture has in many respects been rapid. Following initial liberalisation, strong political support for farmers has resulted in increasing protection in the form of state price intervention, import barriers and subsidised credit. Poor financial performance in farming and processing persists, and the full independent development of a dynamic food marketing system continues to elude Poland. Further developments require commitment on behalf of profit-seeking agents to investment in the functions of the market. This commitment will be occasioned by a clear policy stance. Government must recognise the role and importance of this development, and channel it effectively by removing existing distortions to investors' incentives. A role for government remains in provision of public goods and in attention to specific problems of transition.