Not all farmers have managed to stay afloat during the difficult times of the pandemic. But they are not giving up - they are fighting for their livelihoods, finding salvation in farm restructuring.
As a result of the restrictions introduced and the partial closure of the economy, liquidity problems affected most industries operating on the Polish market. Many companies operate in a system of so-called communicating vessels, which means that the problems of one sector very quickly affect its main suppliers and subcontractors. This was the case, among others, HoReCa industry and farmers.
The result? Businesses that could not count on government support during the pandemic are now turning to companies and law firms specializing in restructuring activitiesAccording to the Central Economic Information Centre, as many as 266 new restructuring proceedings were opened in June 2021, which means a record number procedures – a year ago, around 30-40 proceedings were opened per month. Thus, in the whole of 2021, a total of 1,002 restructuring proceedings were opened in Poland.
Farmers are restructuring the most
According to data from the Central Economic Information Centre, the industry (divided according to the Polish Classification of Activities) with the largest number of restructurings is currently agricultural and cereal cultivation, combined with animal breeding and breeding, and dairy cattle breeding and breeding (192 proceedings). In second place with 55 opened restructuring is in transport sector.
– The reasons for the difficult situation in the agricultural sector can be traced to many factors – some of them are related to the functioning of the market, and some result from problems caused by the coronavirus, such as a drastic decrease in demand for agricultural products resulting from the limitation of catering activities, the disruption of supply chains and price instability, both on the Polish and European markets. In agriculture, the problems were also exacerbated by difficult weather conditions - droughts and heavy rainfall - explains Małgorzata Anisimowicz, qualified restructuring advisor and president PMR Restructuring Management Board.
Małgorzata Anisimowicz – qualified restructuring advisor and President of the Management Board of PMR Restrukturyzacje gave an interview to the farmer.pl website devoted to agricultural topics.
30 July 2021. We invite you to read the full version:Farmers don't want bankruptcy and are fighting for their farms
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