• The Food Platform pilot, implemented by the National Agricultural Support Centre (KOWR) and the GPW Group (GPW, TGE, IRGiT) in co-operation with the Ministry of Agriculture and Rural Development, closes on 31 August 2020
• 1250 tonnes of wheat were sold during the pilot, and 34 authorised warehouses and three brokers joined the Agricultural and Food Commodities Market
• Exchange fees charged to agricultural market participants are waived until the end of the pilot. The GPW Group has decided to extend the waiver until the end of September 2020

In connection with the upcoming closing of the Food Platform pilot, the project steering committee met to summarise the implementation. The meeting brought together Secretary of State at the Ministry of State Assets Artur Soboń, Undersecretary of State at the Ministry of Agriculture and Rural Development Ryszard Kamiński, the National Agricultural Support Centre Deputy General Director Wojciech Kędzia, and Member of the Management Board of the Warsaw Stock Exchange Izabela Olszewska.

“The spring drought was a big challenge but May rains came at the last moment. Estimates of this year’s cereal harvest look optimistic. I hope that the successful conclusion of the pilot will encourage more farmers to sell grains on the exchange, which provides guarantees of trade and offers better prices without the mark-up charged by many intermediaries. This is how to simplify and civilise the entire food chain and ensure equitable distribution of profits among all stakeholders. The success of the pilot is an additional incentive for further development of the exchange agricultural market and the range of offered products,” said Minister of Agriculture and Rural Development Jan Krzysztof Ardanowski.

Following the completion of the pilot, the Agricultural Food and Commodities Market (RTRS) will be operated on a commercial basis as of 1 September 2020 by the Polish Power Exchange (TGE), a subsidiary of the Warsaw Stock Exchange. To promote the agricultural market and encourage active participation in the market after the harvest, the GPW Group has decided to waive exchange fees on the agricultural market until the end of September.

“I am proud that the Warsaw Stock Exchange follows in the footsteps of other developed exchange operators and enters into new sectors and modernises them. The expansion of the GPW Group’s product offer to include the agricultural market is a key step in further development of agriculture in Poland. We are a major cereal producer in the EU. The success of our project is warranted by intersectoral co-operation of businesses, the  public administration, and research centres,” said Secretary of State at the Ministry of State Assets Artur Soboń.

During the pilot, two commodities were introduced to trading on RTRS: wheat as of the beginning of March, and rye as of the end of July. Both those commodities are traded in two systems: the single-price system and the auction system. During authorisation, each warehouse decides which category of commodities to store: wheat and/or rye.

“I am most grateful to all those involved in the development of the Food Platform for their effective and efficient co-operation. It is fair to say that we have left the management of the project in good hands. GPW’s advanced competences and operational excellence ensure development and accomplishment of the goals of the Food Platform with continued support of KOWR,” said Wojciech Kędzia, Deputy General Director of the National Agricultural Support Centre (KOWR).

Since the launch of RTRS, 1250 tonnes of wheat have been sold in total at one auction and two trading sessions in the single-price system. Thirty-four authorised warehouses have been registered and three brokers have been admitted in the exchange agricultural market over those six months.

“The Food Platform is a pioneering innovative project which engages all market stakeholders. While the coronavirus pandemic has affected our business plans during the pilot to some extent, we expect to achieve our objectives and attract even more RTRS participants in the coming months. We will also introduce new products into trading and offer trade in agricultural and food commodity forwards,” said GPW Management Board Member Izabela Olszewska.

The Ministry of Agriculture and Rural Development has delegated its executive agency KOWR as the co-ordinator of the Food Platform project. KOWR is the leader of a consortium comprised of the Institute of Agricultural and Food Economics (IERiGŻ) and Institute of Biotechnology of the Agricultural and Food Industry (IBPRS). The project is funded by the National Centre for Research and Development (NCRD) under the GOSPOSTRATEG Programme.

The Food Platform relies on the Polish Power Exchange (TGE), Commodity Clearing House (IRGiT), and Authorised Warehouses. TGE ensures transparent trade in agricultural commodities, the clearing house ensures safety of financial clearing, and the Authorised Warehouses ensure high quality of stored commodities.