Competition makes markets stronger – not weaker

Competition in the biomass market should not be feared – it should be welcomed with openness. Baltpool, the biomass exchange, is addressing recent concerns in Poland that biomass imports could threaten local producers. As similar discussions have emerged, it’s worth asking: should competition be avoided – or embraced with open arms? Based on Baltpool long-term experience, healthy competition strengthens ecosystems, boosts efficiency, and drives sector-wide resilience.

In Poland, new proposals to shift attention away from biomass toward alternative sources have initiated a wave of discussions. The main issue of debate is the statement that there simply isn’t enough wood to meet the market needs and allowing import would weaken domestic industry.

Baltpool has been aware of these fears – we are familiar with them. “These arguments mirror what we faced in Lithuania a few years ago,” says Ramunas Waszkiewicz, Market lead Poland at Baltpool. “At that time, there were uncertainties related to the long-term presence of cheap biomass from Belarus on the market, which local producers perceived as a threat to domestic production. However, that did not happen.”

Instead, the biomass market in Lithuania adapted to the situation. Local suppliers improved their operations. The introduction of the biomass import ban from Belarus in 2022 caused significant concern about potential shortages – which ultimately did not occur. The market responded flexibly, and stable competition ensured a balance between supply and demand.

“A diverse supply base is not a threat – it’s a buffer against shocks, and it also acts as a form of protection against market volatility,” says Ramunas Waszkiewicz. “If one source dries up, others step in. That’s how resilience is built.”

The key is openness. When multiple players compete fairly through a transparent platform, equal conditions are created for both small and large participants. Pricing reflects actual market value, and negotiation power no longer depends on scale or behind-the-scenes connections. Smaller suppliers gain access to major buyers and participate in auctions according to their capabilities.

“We saw that openness actually strengthened our market,” says Ramunas W. “It didn’t squeeze out local producers. It helped them evolve.”

Baltpool encourages Polish stakeholders to take a long-term view. Restricting competition may feel like protection, but it can backfire by raising prices, limiting companies’ potential to grow and improve their operational efficiency, and slowing market growth. Instead, the focus should be on building an open, trusted system where all players – local or international – compete on equal terms.

“Ultimately, competition leads to better services, more favorable prices, and a more efficient system – and these are not just theoretical assumptions,” concludes Ramunas Waszkiewicz. “We regularly analyze market data, which clearly confirms that competition is not a threat, but a mechanism that supports market development.”