Erik van Vugt has been working in Poland for more than half of his life. In 1998, he and his partners founded FreshWorld. Today, the Bronisze-based company provides direct sourcing of fruit and vegetables for Polish retail customers from markets such as China, South Africa, and Latin America. With its own transport and repackaging department, FreshWorld offers customers comprehensive services akin to those of a traditional provider. It's time for an interview on the opportunities and challenges in Poland.
"When I moved here, it regularly dropped to -25°C. These days, that no longer happens. This week, it's extremely cold at -10°C," Erik says. Temperature shifts aren't the only changes he's witnessed. "The Polish economy has developed rapidly. In 2023, the minimum wage increased by 15%, again by 15% in 2024, and by another 8% this year. Within four years, we'll surpass the minimum wage of an average Spaniard, and within eight years, we'll be on par with the UK."
Attracting Polish employees is no longer easy for FreshWorld. "We work with many people from Ukraine, Georgia, and Uzbekistan, and through employment agencies, we also hire workers from the Philippines," Erik explains. The days when Poland served as a labor source for Dutch employment agencies are over. "Poles who have worked in the Netherlands for 15 years are happy to keep returning, but recruiting younger workers is now nearly impossible."
In FreshWorld's early days, much of their produce came through Dutch importers, but those times have passed. "There's no longer room for an importer in both Poland and the Netherlands. Our supermarket clients now expect us to establish direct programs with suppliers in South Africa, China, and Latin America. Our competition increasingly comes from Dutch importers who serve Polish customers directly. We still buy from several regular suppliers in the Netherlands, though. Our advantage is that we know the Dutch market well, and especially when there's a surplus of produce in the Netherlands, we serve as a valuable outlet by moving significant volumes," Erik explains.
"The Polish retail market is expanding rapidly, with local supermarket chains like Dino and Biedronka growing, alongside international giants such as Lidl, Carrefour, Kaufland, and Intermarché setting their sights on Poland. While affordability used to dominate consumer demand, there's now a noticeable shift toward higher-quality, more expensive products. For example, imported grapes were once unaffordable for the average Polish consumer, but today, especially in major cities, they're widely available."
Rise of convenience
"Avocados have become a significant product for us. We now have six ripening chambers in our packing center for ready-to-eat mangoes and avocados. Convenience is also becoming a bigger focus in Polish retail, with major players introducing products like bags of pre-cut lettuce with sauces, similar to what's seen in the Netherlands. This consumption pattern will continue evolving— as people become wealthier, they seek more convenience and are willing to pay for premium products," Erik observes. Organic products, however, still lag behind in Poland. "There is demand for organic produce, but it remains a challenging market segment with slower turnover and lower prices. We're not particularly strong in that area."
"For us, 30% of turnover comes from citrus, another 30% from vegetables, and the rest from (exotic) fruits such as melons, avocados, mangoes, and other specialties. We've moved away from offering a full assortment, as customers now prefer working with specialists. For instance, we don't deal in potatoes or leafy greens," Erik explains. "Our focus is primarily on imports, but we also export soft fruits and apples."
"Products like apples, tomatoes, and berries are cultivated professionally in Poland. Poland has even become Europe's largest apple producer. For a long time, Poland's competitive edge was low picking costs due to its status as a low-wage country. However, as wages rise, that advantage is fading, making apples more competitive in quality. Older varieties like Idared are disappearing from the market, replaced by higher-quality varieties like Gala, which fetch good prices in export markets," Erik says. "Until about 10 years ago, Russia was a major buyer of Polish apples. I believe that once the war ends—and eventually, exhaustion will take over—trade relations will resume. Business is business, after all, even though sentiment toward Russia in Poland is far more negative than in the Netherlands."
Ukrainian berries
"Polish blueberries are also a major supermarket item here. During the summer, 500-gram packs sell for 2-3 euros, making them popular shelf staples. However, harvesting challenges increased last summer. We also sold a significant amount of Ukrainian berries to Polish retailers last year. As incomes rise, fewer people are willing to pick berries, which means robotization and automation will inevitably become more prominent in Poland as well."
"Some still think the Netherlands has a monopoly on innovation. While many innovations do originate from the Netherlands, other countries aren't standing still either. I once hosted a group of Dutch tomato growers who were amazed by the modern greenhouses here. EU funding has been used—sometimes misused—but also invested wisely, leading to the development of highly professional cultivation companies that need no lessons from anyone."
No own cultivation
Erik has no ambition to venture into Polish cultivation. "I know very few success stories of traders becoming growers and vice versa. Some take that step to offer supermarkets direct access to growers, but I'm not a grower. In my view, cultivation isn't a side job—it requires full dedication, from morning to night."
For FreshWorld, Erik sees a bright future. "We celebrated our 25th anniversary last year, and I'm happy with where the company is heading. Starting a fruit and vegetable business in the Netherlands is relatively easy since you can outsource cold storage and repacking. In Poland, however, the infrastructure is on a different level. There are several serious trading companies here, and we're proud to be among them. Even after more than 25 years, we're still growing." Returning to the Netherlands is out of the question for Erik. "I still visit regularly, but my business and family are here. My future is in Poland!"
For more information:
Erik van Vugt
Fresh World International Sp. z o.o.
Tel: +48 22 33 76 224/225
erik@freshworld.com.pl
www.freshworld.com.pl