Development of Oil Industry in Poland in the Context of the European Union

Abstract

Oil industry is developing well in Poland. This study aimed to examine the development of the Polish oil industry after joining the European Union. The following questions were asked: What were the changes in the consumption of vegetable oils in Poland after EU enlargement in 2004? How did the production of vegetable oil change in Poland after EU enlargement in 2004? And has the liquidity of the Polish oil industry changed after EU enlargement in 2004? First, the changes in the oil industry were evaluated. This research proved the development of the fat industry. We used the regression model to analyze the impact of chosen factors on the economic situation of the oil industry in Poland. Rapeseed is the main source of oil for the edible oil and biodiesel industry. High prices of rapeseed increased the sown area of rapeseed. The production of crude rapeseed oil changed from 520.1 thousand tons in 2005 to 1440 thousand tons in 2023. Biofuels made from rapeseed oils are called first generation. Poland’s production of refined rapeseed oil changed from 386.5 thousand tons in 2005 to 541 thousand tons in 2023. These numbers confirm the development of edible oil and biofuel production. The gross profit increased from PLN 133 mln in 2005 to PLN 443.8 mln in 2023. The net profit of the fat industry increased from PLN 110 mln in 2005 to PLN 381.6 mln in 2023. The oil industry is characterized by high investment, which reached the level of PLN 232.9 mln in 2023. The investment rate in 2023 was PLN 1.96 %. The changes observed in the rapeseed market after Poland joined the EU affected the performance of vegetable oil and biofuel producers. The regression analysis proved the hypothesis that the monthly consumption of rapeseed oil is the main factor influencing the oil industry situation in Poland. The oil industry is important to the development of the whole economy. Particular attention should be paid to current liquidity, which is why a constant supply of money from sold oil and biodiesel is needed to cover costs.