Newly Emerging e-Commerce Initiatives on the Agricultural Market in Poland

Newly Emerging e-Commerce Initiatives on the Agricultural Market in Poland

Mieczyslaw Adamowicz (Warsaw University of Life Sciences (SGGW), Poland) and Dariusz Strzebicki (Warsaw University of Life Sciences (SGGW), Poland)
DOI: 10.4018/978-1-60566-820-8.ch004
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Abstract

Establishment of the new institutions that could improve Polish agricultural market was one of the main goals of the Polish government agricultural policy in the period of economy transformation. The project of creating agricultural markets was successful. Several regional wholesale markets and commodity exchanges were established and most of them still function with good performance. These markets are the key important marketing channels for market-oriented farmers in Poland. They can also be seen as a source of electronic commerce innovations on the Polish agricultural market. The aim of the chapter is to present the process of establishment and first experiences of electronic market of agricultural products as one of the new e-commerce initiatives on the Polish agricultural market. The chapter also discusses conditions of the electronic exchange development and its impact on the Polish agricultural market.
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Introduction

The government policy of early 90s in Poland was focused on transforming central planned economy into market economy. One of the most important tasks of the Polish agricultural policy of that time was to establish new market institutions to improve the organization of agricultural market. The project of wholesale markets and commodity exchanges development started at the beginning of 90s. As a result several wholesale markets and commodity exchanges were founded and most of them are operating with a good performance at present. Among others important markets such as Warsaw Commodity Exchange and Wielkopolski Wholesale Market in Franowo were established. For many farmers in Poland these institutions are important marketplaces and constitute the new marketing channels. The institutions are not only important places where farmers can sell their products but they are also the leading sources of e-commerce innovations on the Polish agricultural market. The main e-commerce initiatives in Poland undertaken by wholesale markets and commodity exchanges are:

  • Activities connected with electronic integration between a wholesale market and a farmer that improve information exchange and enable creating electronic orders, farmers’ access to the information on wholesale inventory levels etc.

  • Creation of electronic markets, which is the activity of commodity exchanges.

The chapter discusses Warsaw Commodity Exchange e-commerce initiative of establishing public electronic market for agricultural products named e-WGT. We also discuss determinants of the electronic exchange development and its impact on the Polish agricultural market. Statistical data from the Polish Central Statistical Office and information from the interview with the chairman of e-WGT1 were used in the analysis.

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