The Agricultural Exchange Market (AEM) was launched in 2020 at the Polish Power Exchange (PolPX), part of the WSE Group of Companies. It was created as part of the project "Food Platform" conducted together with the National Agricultural Support Centre. The AEM constitutes a separate segment of the POLPX Commodity Market, which enables trading in selected agricultural and food products meeting the exchange's quality standards.
It was the determination and involvement in the development of this market segment that prompted the Polish Power Exchange to establish an advisory body in the form of the Agricultural Market Council. It will have a consultative and advisory role in terms of recommendations for planning further development of the AEM. The council was composed of representatives of the Ministry of Agriculture and Rural Development, the National Agricultural Support Centre of the Warsaw Stock Exchange and, what is very important for the success of the project, branch organisations.
Experts point out that in other countries, such as Great Britain, France or the United States, the exchange model of trading in agricultural commodities has been bringing both buyers and sellers measurable benefits for years.
"As the Warsaw Stock Exchange Group, we have very ambitious plans for the development of AEM. In addition to the already functioning cash market with physical delivery, we want to add a derivatives market in the future. This will allow market participants to secure transaction prices and increase the competitiveness of the agricultural sector in Poland," explains WSE Management Board member Izabela Olszewska.
Buyers on the AEM have the opportunity to purchase large, uniform-quality lots of grain produced in the EU and stored in warehouses authorized by POLPX, of which there are currently 51 operating across the country. Every Wednesday a uniform rate is determined separately for each warehouse for the grain deposited therein. The basic unit traded on the exchange is 25 tons of grain.
"We are also committed to ensuring that farmers can sell their products well and safely. The Agricultural Exchange Market at the Polish Power Exchange guarantees the receipt of goods, payment for agricultural products and is a reliable instrument on the market" - says Ryszard Bartosik, Secretary of State at the Ministry of Agriculture and Rural Development.
On average, Poland produces as much as 30 million tonnes of cereals every year, including over 10 million tonnes of wheat.
"We should appreciate Poland's potential when it comes to agricultural production in the Community and export opportunities which also go beyond the continent, to the so-called third countries from North Africa or the Middle East. There must be tools in place to take advantage of this. As a result of such demand, the Agricultural Exchange Market was created, which is a modern tool based on global trends", emphasizes Mateusz Balcerowicz, Director of the Innovation Department of the National Agricultural Support Centre.
Source: Poland Daily 24, PAP MediaRoom