The Polish competition authority, UOKiK, has conducted a study on the characteristics, relationships, and competition levels in the malt market for beer production in Poland. The report identifies a significant issue regarding the insufficient quantity and quality of grains needed for malt production.

Poland ranks as one of the leading beer producers in the European Union, contributing over 10% of the EU's beer production. UOKiK's investigation included 16 selected breweries, including the largest beer producers, as well as hop producers, intermediaries, and malt houses, focusing on the years 2019-2022.

The findings resulted in two reports: one on the national beer and hop market published last year and the current report on the malt market, which includes recommendations for legal and systemic changes. UOKiK President Tomasz Chróstny emphasized the importance of understanding the relationships between agricultural producers and intermediaries in the malt supply chain.

The report reveals that while breweries claim a competitive market for malt, UOKiK's observations suggest potential legal violations in contracts between producers and suppliers of unmalted grains, particularly concerning pricing methodologies and payment terms.

Grains, especially malting barley, are essential for beer production. However, the number of farms growing barley has significantly decreased, leading to a shortage of malting barley in Poland. Consequently, domestic malt houses have been sourcing grains from both local and foreign suppliers.

In 2022, four foreign-owned malt houses accounted for approximately 99% of Poland's malt production. Despite this, nearly half of the malt used by breweries was imported, indicating that domestic production is insufficient to meet demand.

UOKiK's recommendations highlight the need for improved collaboration between malt houses and local farmers to enhance barley cultivation and production quality. Properly drafted contracts can help mitigate misunderstandings and foster long-term cooperation, while also ensuring compliance with competition laws.

The full report and recommendations are available on UOKiK's website.