{"id":13658,"date":"2009-07-14T17:27:55","date_gmt":"2009-07-14T15:27:55","guid":{"rendered":"https:\/\/wp.amber.com.pl\/sytuacja-polskiego-bursztynnictwa-na-rynku-w-roku-2007\/"},"modified":"2025-11-09T19:41:06","modified_gmt":"2025-11-09T18:41:06","slug":"the-situation-of-polish-amber-mining-and-trade-on-the-market-in-2007","status":"publish","type":"bursztyn","link":"https:\/\/amber.com.pl\/en\/bursztyn\/sytuacja-polskiego-bursztynnictwa-na-rynku-w-roku-2007\/","title":{"rendered":"Market situation of the Polish amber industry in 2007"},"content":{"rendered":"

Basic economic factors<\/strong><\/p>\n\n\n\n

Dominican amber, made famous by a Spielberg film, although full of charm and teeming with intriguing traces of past life, is mined in negligible quantities and is also subject to strict export bans from its native country. Its relative, Mexican amber from the state of Chiapas, has never transcended its magical role in the local community and is rare in natural history collections. Fossilised resins once mined in significant quantities from Burma and Japan appear only in trace amounts and solely in local markets. Amber from Sarawak, obtained in large quantities incidentally during brown coal mining, has so far failed to gain market approval due to its unappealing appearance. Thus, succinite reigns supreme, although its extraction is decreasing, with a significant portion of it being illegal. I present estimated figures on the decline in extraction in the tables below:<\/p>\n\n\n\n

Amber (succinite) extraction and collection in tonnes \u2013 comparison of 2000 and 2006<\/strong><\/p>\n\n\n\n

\nPoland <\/strong>\n<\/td>\nRussia<\/strong>\n<\/td>\nUkraine<\/strong>\n<\/td>\nLithuania<\/strong>\n<\/td>\nOther<\/strong>\n<\/td>\nSum<\/strong>\n<\/td><\/tr>
2000<\/strong><\/td><\/tr>
legal<\/td>\n7\n<\/td>\n442\n<\/td>\n0,4\n<\/td>\n1,6\n<\/td>\n1\n<\/td>\n452\n<\/td><\/tr>
illegal<\/td>\n12\n<\/td>\n25\n<\/td>\n20\n<\/td>\n1\n<\/td>\n\u2013\n<\/td>\n58\n<\/td><\/tr>
Together<\/td>\n19\n<\/td>\n467\n<\/td>\n20,4\n<\/td>\n2,6\n<\/td>\n1\n<\/td>\n510\n<\/td><\/tr>
<\/td><\/tr>
2006<\/strong><\/td><\/tr>
legal<\/td>\n5\n<\/td>\n132\n<\/td>\n3\n<\/td>\n1\n<\/td>\n1\n<\/td>\n142\n<\/td><\/tr>
illegal<\/td>\n12\n<\/td>\n18\n<\/td>\n27\n<\/td>\n1\n<\/td>\n\u2013\n<\/td>\n58\n<\/td><\/tr>
Together<\/td>\n17\n<\/td>\n150\n<\/td>\n30\n<\/td>\n2\n<\/td>\n1\n<\/td>\n200\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Extraction of useful fossil resins in 2006<\/strong>\n\n\n\n\n\n\n\n\n\n\n
Fossil resin name<\/strong><\/td>\nmining site<\/strong><\/td>\nextraction in tonnes<\/strong><\/td>\n<\/tr>\n
amber (Baltic amber)<\/strong><\/td>\nCentral Europe<\/td>\n200<\/td>\n<\/tr>\n
Dominican amber<\/strong><\/td>\nSpanish \u2013 Caribbean<\/td>\n1,2<\/td>\n<\/tr>\n
Mexican amber<\/strong><\/td>\nMexico \u2013 Chiapas<\/td>\n0,3<\/td>\n<\/tr>\n
Birchwood<\/strong><\/td>\nBurma and neighbours<\/td>\ntrace amounts<\/td>\n<\/tr>\n
Symmetry<\/strong><\/td>\nSicily and Liguria<\/td>\ntrace amounts<\/td>\n<\/tr>\n
Japanese amber<\/strong><\/td>\nKudzi \u2013 w. Honsiu<\/td>\n0,5<\/td>\n<\/tr>\n
Together<\/strong><\/td><\/p>\n\n\n

202<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/p>\n\n\n\n

Amber from Sarawak not used in jewellery has not been included in the table<\/p>\n\n\n\n

As can be seen from the figures, almost all usable amber comes from the Russian Federation (Kaliningrad Oblast) and Ukraine. Specifically, in 2000 the figure was 95.5%, and in 2006 it was 90%. Russian production from the mines on the Sambia River, which ten years ago was approaching the 1,000-tonne mark per year, is falling sharply. Three years ago it stood at 230 tonnes, two years ago at 178 tonnes, and last year at just 132 tonnes. Supplies to our processing plants are being sustained by illegal mining in Russia and Ukraine, the output of which reaches Poland either directly from Ukraine or, more often than not, via Lithuania from Russia.<\/p>\n\n\n\n

Collection from Polish beaches, recovery from the sea, finds in post-glacial accumulation zones (including on overburden heaps at lignite mines) and the yield from concessions for washing amber from beneath the Vistula Delta sediments (11 concessions, which are utilised to a very limited extent) cover less than 10% of the Polish processing industry\u2019s requirements.<\/p>\n\n\n\n

Little is likely to change regarding the share of domestic, Polish raw material due to the allocation of a dozen or so small plots of municipal land in Gda\u0144sk for amber dredging \u2013 the ordinance concerning this matter was signed by the Mayor of Gda\u0144sk, Pawe\u0142 Adamowicz, on 7 July 2007. This area was already legally prospected in 1972 and then secretly for many subsequent years. Therefore, it is difficult to expect sensational results. However, the commencement of legal exploitation of amber deposits in the Vistula delta, and specifically in the area of the largest cluster of amber product manufacturers, has very significant symbolic importance and will be an advantage in weakening the monopolistic position of Russian mines in Sambia. Polish and Lithuanian amber product manufacturers, which dominate the market, are therefore, and will remain in the coming years, dependent on importing raw material from Russia and Ukraine. Meanwhile, extraction in these countries continues to decline, even though the deposits are vast and geologically well-documented. Obstacles include legal complexities in accessing deposits, stricter environmental protection regulations, and, above all, difficulties in organising the extraction process in a way that prevents the theft of extracted material. This last factor causes losses in mining operations, even under the best natural conditions (rich and shallow deposits).<\/p>\n\n\n\n

Polish companies coped well with the amber shortage by switching to the production of silver jewellery featuring increasingly modest amounts of amber. As recently as ten years ago, the proportion by weight of amber in the total mass of products fluctuated between 13 and 18%. In 2007, this fell to around 10%. In terms of volume and appearance, this results in an equal proportion of metal and amber, as silver has a specific gravity ten times greater than that of amber. Fortunately, there is no shortage of silver; the supply market offers an ever-increasing selection of semi-finished products with varied properties. A positive development is the recent stabilisation of silver prices, as silver accounts for a significantly larger share of production costs than amber stones.<\/p>\n\n\n\n

Over the last 7 years, expenditure on silver \u2013 calculated as a percentage of the selling price of mass-produced goods \u2013 has risen from 30 to 36%. Despite savings on the weight of amber stones, their cost has also risen from 5 to 9% of the selling price. Overall, therefore, we are seeing an increase in the cost of basic materials of 10% within the structure of the selling price. However, this did not lead to a decline in profitability but rather to an increase, as the selling prices of finished products rose even further during this period \u2013 by approx. 20%.<\/p>\n\n\n\n

For larger companies, the introduction of a flat-rate income tax of 19% was of great significance, as it made it possible to increase net profit by up to a dozen or so per cent. As a result, investment in new production facilities, equipment and retail outlets picked up.<\/p>\n\n\n\n

Poland's integration into the EU's common market has significantly increased sales to our neighbours, streamlined documentation procedures, and reduced transport costs. For social reasons, the decline in employment in the amber industry is a concerning phenomenon, particularly caused by the collapse of small, family-run businesses focused on traditional amber necklace assortments. This does not lead to a decrease in the volume of products supplied, as they are replaced by jewellery. As a result, we are achieving a clear increase in labour productivity, and rising wages in larger companies do not threaten the competitiveness of the Polish export offer.<\/p>\n\n\n\n

Polish dominance on the international amber market<\/strong>
None of the countries specifically classify the production and trade of amber products in their statistics. This is due to their small share in global trade. The export sales of amber products, less than 400 million USD, is a small, even negligible amount compared to the global merchandise trade of 13 trillion USD (excluding weapons) in 2006. Amber accounts for merely 0.3 cents out of every thousand dollars. However, from the perspective of the interests of a significant production community, concentrated mainly around the Baltic Sea (Pomerania, Kaliningrad Oblast of the Russian Federation, Lithuania), it is worth attempting to estimate the scale of these economic phenomena, even whilst being aware of the risk of errors and inaccuracies.<\/p>\n\n\n\n

Production and export of finished goods in 2006<\/strong><\/p>\n\n\n\n

\nPoland <\/strong>\n<\/td>\nRussia<\/strong>\n<\/td>\nUkraine<\/strong>\n<\/td>\nLithuania<\/strong>\n<\/td>\nOther<\/strong>\n<\/td>\nSum<\/strong>\n<\/td><\/tr>
Total production<\/td>\n360\n<\/td>\n50\n<\/td>\n12\n<\/td>\n100\n<\/td>\n8\n<\/td>\n530\n<\/td><\/tr>
In this export<\/td>\n150\n<\/td>\n5\n<\/td>\n1\n<\/td>\n25\n<\/td>\n4\n<\/td>\n185\n<\/td><\/tr>
intra-EU turnover<\/td>\n160\n<\/td>\n\u2013\n<\/td>\n\u2013\n<\/td>\n50\n<\/td>\n\u2013\n<\/td>\n210\n<\/td><\/tr>
together international export<\/td>\n310\n<\/td>\n5\n<\/td>\n1\n<\/td>\n75\n<\/td>\n4\n<\/td>\n395\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The above table omits the phenomenon of re-exportation, in which Danish and Chinese companies specialise. This issue requires separate recognition.<\/p>\n\n\n\n

Numerical data indicate the dynamics of amber processing in Lithuania and the ability of local companies to quickly acquire recipients, especially within the European Union. The Lithuanian offering is characterised by a significantly higher share of traditional, pure amber products than the Polish one. This suggests a greater ability than in Poland to obtain raw material supplies from the Kaliningrad combine, likely conditioned by years of cooperation during their shared belonging to the Soviet Union.<\/p>\n\n\n\n

Domestic market in Poland<\/strong>
In terms of the number of shops selling amber products, a very diverse jewellery offering, the beginnings of the construction of specialised retail chains (e.g. Boruni Krak\u00f3w, VNS Gda\u0144sk) and the distribution of retail outlets across the country, the Polish retail offering is probably the most comprehensive in Europe. We have both exclusive galleries offering expensive items and unique works of art, as well as more modest shops and stalls, right down to street stands, which somewhat devalue the status of amber.
This allows for significant differentiation of retail trade margins \u2013 from a dozen or so to several hundred per cent of the purchase price. This ensures profitability significantly exceeding the income from capital invested in manufacturing. Trade also has the opportunity to make considerable use of trade credit, granted by suppliers in the form of deferred payment for invoices for deliveries. A sufficient network of wholesalers has not yet been established in all parts of the country, and consequently, manufacturer-to-shop transactions prevail.<\/p>\n\n\n\n

Lithuanian and Russian products are reaching the Polish domestic market, not always through legal channels. For example, unsigned animal figurines, which are sometimes expensive due to their significant weight, should raise concerns. In terms of the supply of impressive decorative amber works of art, Poland clearly lags behind the Russian offerings in St. Petersburg and Moscow \u2013 this is a rather regrettable phenomenon, especially for Gda\u0144sk, famous for its traditions in this very field.<\/p>","protected":false},"excerpt":{"rendered":"

Contrary to earlier predictions of a market offensive of attractive fossil resins from various parts of the world, Baltic amber, or succinite, remains the only type of amber that counts in the global market.<\/p>","protected":false},"featured_media":26918,"parent":0,"menu_order":14,"template":"","meta":{"_acf_changed":false,"slim_seo":{"title":"Sytuacja polskiego bursztynnictwa na rynku w roku 2007 - Amber Portal","description":"Despite earlier predictions of a market offensive by attractive fossil resins from various parts of the world, Baltic amber, also known as succinite, remains the only"}},"tags":[],"lokalizacja":[],"temat":[224],"class_list":["post-13658","bursztyn","type-bursztyn","status-publish","has-post-thumbnail","hentry","temat-raporty-rynku-bursztynu"],"acf":[],"_links":{"self":[{"href":"https:\/\/amber.com.pl\/en\/wp-json\/wp\/v2\/bursztyn\/13658","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amber.com.pl\/en\/wp-json\/wp\/v2\/bursztyn"}],"about":[{"href":"https:\/\/amber.com.pl\/en\/wp-json\/wp\/v2\/types\/bursztyn"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amber.com.pl\/en\/wp-json\/wp\/v2\/media\/26918"}],"wp:attachment":[{"href":"https:\/\/amber.com.pl\/en\/wp-json\/wp\/v2\/media?parent=13658"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amber.com.pl\/en\/wp-json\/wp\/v2\/tags?post=13658"},{"taxonomy":"lokalizacja","embeddable":true,"href":"https:\/\/amber.com.pl\/en\/wp-json\/wp\/v2\/lokalizacja?post=13658"},{"taxonomy":"temat","embeddable":true,"href":"https:\/\/amber.com.pl\/en\/wp-json\/wp\/v2\/temat?post=13658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}