Dutchmen unable to fulfil their farming ambitions in densely populated Holland, Danes fed up with European Union agriculture rules and English firms expanding their agri-businesses have all plunged into the maelstrom of the Polish farming market.

Their arrival flies in the face of the conventional wisdom that Poland's huge and fragmented farming sector, with an average farm size of eight hectares, is inherently unprofitable.

They face daunting challenges. Language barriers, the cultural problems of life in conservative rural areas, low prices for their products, tariffs limiting exports and competition from EU-subsidized imports have deterred all but the bravest.

Those who survive the pitfalls of taking over large former state farms with demoralized staff and a legacy of under-investment say they will be in a prime position once Poland joins the European Union and market conditions improve.

"We can produce a ton of wheat for two-thirds of the cost in Western Europe," says Lawrence Thompson, an agriculture advisor with Farmawealth, an English investment firm that is taking over one of Poland's largest farms.

"If the borders come down then we can compete with anyone and we have the scale to deliver consistently good quality produce," added Thompson. "There are opportunities here and if markets open up Poland will be in a strong position."

Farmawealth will invest some $7.5 million in the Kombinat Rolny Glubczyce over two years to improve grain, dairy and beef production and add a potato crop on its 12,000 hectares of rolling land in southwestern Poland, near the Czech border.

The German food group Suedzucker is about to sign a similar deal for 8,500 hectares in nearby Kietrz. It too is set to benefit from growing demand from supermarkets and wholesalers for reliable bulk deliveries of good quality products.

Out of the West

Many West European farmers who have moved to Poland in the last decade are simply searching for opportunities no longer available in crowded, highly structured Western agriculture.

Unable to afford a Dutch farm, Jan Musch left a job at an agricultural college in northern Holland, sold his house and in late 1998 moved his wife and children to a 800 hectare grain and livestock business near Poznan in central Poland.

Normal agricultural market uncertainties are compounded by a law barring foreigners from buying land, which puts off many investors who want the security of ownership, says Musch.

Non-Poles instead get long-term lease deals of up to 30 years. Most are taking over larger farms on former German land which was kept by the Polish state after World War II.

The majority of Polish farmers own small plots and resist mutual co-operation.

Since 1992 the state land agency has signed more than 600 contracts to lease out some 230,000 hectares to foreigners.

This compares to the 3.5 million hectares of state terrain leased to Poles. The number of foreigners has also been whittled back by a failure rate that has risen to 25 percent as adverse market conditions have taken their toll.

"I know of several English and Irish farmers who came, got burned and left," said Tomasz Zdziebkowski, Farmawealth's operations director in Poland. "You need tight financial controls and careful management or else you're sunk."

With patriotic sentiment firmly against land sales few expect the law to change quickly, despite EU pressure. (Agencies via Xinhua)