Bakoma and J.W.Construction invest in biodiesel

Bakoma, the largest Polish producer of dairy products and J.W. Construction, Polish housing development company, are reported to invest in biodiesel production.

Rzeczpospolita daily found out that a new player is to appear on the Polish biodiesel market in autumn. Zbigniew Komorowski, owner of Polish Mills and Bakoma, is building a plant which should be able to produce up to 100,000 metric tons of rapeseed oil esters. The same owner’s oil-press is currently supplying Trzebinia Refinery.

Zbigniew Komorowski has also plans to launch a PLN-300-million bio-ethanol manufacturing plant in May. ‘The output will be exported to Sweden, the contracts are already signed. Poland is not likely to have a market for this fuel in the foreseeable future’ Komorowski told ‘Rzeczpospolita’.

Józef Wojciechowski, the owner of J. W. Construction is also going into biodiesel production. ‘We should launch trail run at a rapeseed oil processing plant with annual capacity of 100,000 tonnes at the turn of April and May. Our next step will be ester production but I don’t know the dates yet’ Wojciechowski told the daily.

The further development of biodiesel production in Poland is heavily dependent on the allowances granted by the European Commission. Polish government has proposed that excise duty on pure ester used as transportation fuel was minimal (PLN 0.01 per litter as opposed to PLN 0.2 per litter currently in force) and exempt from fuel fee (approx. PLN 0.1 per litter). Polish fuel concerns announced that without the allowances they will not sell more biodiesel than required by law. This amount is increased on a yearly basis and currently is at 4.6%. The EC should make its decision on the allowances known by the end of March.

Polish Market

ECONOMIC MONITOR

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• ● In December 2009 and January 2010, as in previous months in the second half of 2009, the Polish economy stood out against other countries in terms of GDP growth. Poland’s economic growth was higher than projected and higher than in other European countries.
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• In 2009 construction output increased by 3.7%.
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• Retail sales increase in most product groups.
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• On the Warsaw Stock Exchange, stock prices were very volatile in January 2010.
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• At the end of December 2009 the registered unemployment rate (claimant count rate) amounted to 11.9% versus 11.4% in November.
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• At the end of January the president signed the 2010 budget bill into law. The bill was adopted by the parliament on December 18.
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• In the fourth quarter of 2009 the Polish economy turned out to be more resistant to the global crisis than had been projected and than the economies of Polish neighbours, something which boosts optimism in forecasts for 2010 and the next years.
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WEEKLY MARKET ANALYSIS

Retail sales up again in June
Retail sales growth in nominal terms accelerated in June to 6.4% y-o-y from 4.3% y-o-y in May. The increase was higher than expected. In real terms, retail sales growth accelerated to 4.5% y-o-y from 2.0% y-o-y. June was a consecutive month with retail sales figures stronger than expected, which indicates that consumption is recovering after it slowed significantly at the beginning of the year. Private consumption is driven by an improvement on the labour market coupled with a rise in disposable incomes. In Q2 2010 retail sales grew by around 3% y-o-y in nominal terms and around 1% y-o-y in real terms. On the basis of retail sales and industrial production data, it can be estimated that the GDP growth rate was close to 3%.

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