Transformation of the organic food market in Poland using concentration and dispersion

Abstract

Purpose: This paper aims to isolate transformations that have been taking place on the Polish organic food market through the lens of cluster development with the intention to indicate the dynamics of organic food clusters – their concentration and dispersion. Design/Methodology/Approach: The employed methodology is centred around location quotient as a measure of concentration which allows to pinpoint clusters. The narrative in the paper follows the development of structures as the Polish organic food market undergoes various transitions. Findings: Organic farmland and organic operators in Poland are not evenly distributed regionally. The conducted study allowed the identification of development patterns of their regional concentration at NUTS-2 level. Throughout the analysed period certain regions have become specialised in organic farming and organic food processing. Practical Implications: As organic producers and organic food processors undergo a process of geographic concentration and are located in proximity with each other the clusters that are formed should translate into an increase of the competitive advantage of the supply-side of the Polish organic food market. Given the necessity to compete not only among each other but with conventional farmers and food processors as well as distributors, organic producers and organic food processors should make use of the proximity advantage and cooperate with the aim of strengthening their position on the market. Originality/Value: The authors undertook a study that goes beyond static analysis of the organic food market in Poland.