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Milk processing industry in Poland is one of the biggest production potentials in the national food industry. It is a sector of strong globalisation pressure and increasing competition. Since the beginning of the transformation period, milk processing industry has undergone changes of entitative structure. As a result of market transformations, many unprofitable units are liquidated. In cases when further development is predicted, the firms are taken over by stronger companies as a result of restructuring and privatization processes. This study aims at the presentation of the consolidation of companies in the milk market. Thus, the article presents the description of milk industry and the number of as well as income of main companies. Despite consolidation processes, milk processing industry still has the features of a dispersed sector.
Milk processing is an industry heavily influenced by globalisation and the growing competition. There are plenty of unprofitable companies that are liquidated due to the market changes. In some cases, some promising entities might be acquired by stronger companies as a result of restructuring initiatives or privatisation processes. It is extremely difficult for a single company to maintain a market position and develop further by undertaking various challenges. Mergers and Acquisitions (M&A) are therefore inevitable strategy. They seem to be key elements of consolidation process of the companies. On the basis of liquidated companies, new groups of companies are created and they gradually increase their market share. The aim of this study is to present the importance of M&A in the development of organisation. Milk Cooperative 'Mlekpol' in Grajewo has been used as an example of such organization. Takeovers executed by the 'Mlekpol' should be considered as incorporations or acquisitions. They can be perceived as a way to achieve various benefits from newly acquired assets, concentration of production and split of key competences.
Low costs of raw material production in comparison with milk production costs in the EU-25 countries are strengths of the Małopolska dairy sector. Low costs of milk production result primarily from the extensive character of production on a majority of dairy farms, dispersion and outdated technologies, lower hygiene and veterinary standards and low remuneration for work in agriculture forced by high unemployment rate and lack of any other sources of income. Simultaneously the same factors are basic causes of low profitability of milk production and lack of funds for its modernization, thus being the main weaknesses of the Małopolska dairy sector. Small farms prevail among milk producers, which makes the structure of milk suppliers for processing greatly dispersed over the whole region. The dispersion most unfavourably affects raw milk quality and competitiveness of final dairy products.
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