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Most state-owned sugar factories in Poland have been consolidated within the 'Krajowa Spólka Cukrowa S.A.'. The article analyzes the process of its privatization which is the condition for the finalization of the Company's restructuring. The originally-assumed mode of privatization of KSC is not being realized. There is no permanence or continuation of the goals which were earlier laid down (they consisted in the privatization of the Company on the basis of employee and planter stock ownership). The realized reform of the EU sugar market and the uncertainty of its final results discourages further capital investments by plantation owners and employees.
The article deals with the reasons behind present problems of the sugar industry in Poland. Nowadays, the sugar business is faced with numerous problems. Despite the restructuring process the sugar industry is still fragmented. There are still many plants in the sugar industry which use outdated and energy-intensive technologies in production. The author makes an attempt to account for the reasons behind the economic backwardness of the Polish sugar industry. In recent years, the sugar industry in Poland has had to cope with the problems connected with the privatization and restructuring processes. Most urgent problems of the Polish sugar business have their origins in the conditions of the development of sugar industry and result from various processes that took place in the past. An analysis of those conditions is vital for explaining why the sugar industry in Poland is economically backward compared to the sugar industry in Western Europe. Solving of this problem presents a very serious challenge for the branch of industry in question.
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