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France, the UK, and Germany Comprise Over a Half of the European Date Market

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Archives, Global Trade Daily, News

France, the UK, and Germany Comprise Over a Half of the European Date Market

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IndexBox has just published a new report: ‘EU – Dates – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The EU date market rose slightly to $324M in 2019, increasing by 1.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +4.0% over the period from 2013 to 2019; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2016 with an increase of 19% against the previous year. The level of consumption peaked in 2019 and is likely to see gradual growth in the near future.

Consumption by Country

The countries with the highest volumes of date consumption in 2019 were France (27K tonnes), the UK (21K tonnes), and Germany (15K tonnes), with a combined 53% share of total consumption. Italy, Spain, Belgium, Poland, the Netherlands, Denmark, Sweden, and Austria lagged somewhat behind, together comprising a further 37%.

From 2013 to 2019, the biggest increases were in Poland, while date consumption for the other leaders experienced more modest paces of growth.

In value terms, France ($62M), the UK ($60M), and Germany ($44M) were the countries with the highest levels of market value in 2019, with a combined 51% share of the total market. These countries were followed by Spain, Italy, the Netherlands, Belgium, Denmark, Austria, Sweden, and Poland, which together accounted for a further 40%.

The countries with the highest levels of date per capita consumption in 2019 were Denmark (655 kg per 1000 persons), France (412 kg per 1000 persons) and Belgium (367 kg per 1000 persons).

Imports in the EU

In 2019, approx. 161K tonnes of dates were imported in the European Union; with an increase of 8.7% compared with 2018. The total import volume increased at an average annual rate of +5.5% from 2013 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. In value terms, date imports reached $444M (IndexBox estimates) in 2019. Over the period under review, imports reached the peak figure in 2019 and are likely to continue growing in the near future.

Imports by Country

In 2019, France (43K tonnes), distantly followed by Germany (24K tonnes), the UK (22K tonnes), Italy (13K tonnes), the Netherlands (12K tonnes), and Spain (11K tonnes) represented the main importers of dates, together achieving 78% of total imports. Belgium (7.1K tonnes), Denmark (4.5K tonnes), Poland (4.1K tonnes), Sweden (3.4K tonnes), and Austria (2.7K tonnes) held a minor share of total imports.

From 2013 to 2019, the most notable rate of growth in terms of purchases, amongst the main importing countries, was attained by Poland, while imports for the other leaders experienced more modest paces of growth.

In value terms, the largest date importing markets in the European Union were France ($96M), Germany ($71M) and the UK ($64M), together accounting for 52% of total imports. These countries were followed by the Netherlands, Italy, Spain, Belgium, Denmark, Austria, Sweden and Poland, which together accounted for a further 40%.

Import Prices by Country

The date import price in the European Union stood at $2,753 per tonne in 2019, dropping by -5.9% against the previous year. Over the last six-year period, it increased at an average annual rate of +1.3%. The most prominent rate of growth was recorded in 2018 an increase of 8.4% year-to-year. As a result, import price attained the peak level of $2,925 per tonne, and then declined in the following year.

There were significant differences in the average prices amongst the major importing countries. In 2019, the country with the highest price was the Netherlands ($3,962 per tonne), while Poland ($2,014 per tonne) was amongst the lowest.

From 2013 to 2019, the most notable rate of growth in terms of prices was attained by the Netherlands, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

frozen fruit
Archives, EU Trade, Global Trade Daily

Frozen Fruit and Nut Market in the EU Grew Slightly to $2.4B

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IndexBox has just published a new report: ‘EU – Frozen Fruit And Nuts – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

The revenue of the frozen fruit and nuts market in the European Union amounted to $2.4B in 2018, growing by 1.5% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +1.5% from 2007 to 2018; the trend pattern remained consistent, with only minor fluctuations being recorded throughout the analyzed period. Over the period under review, the frozen fruit and nuts market attained its maximum level in 2018 and is likely to see steady growth in the near future.

Consumption By Country

The country with the largest volume of frozen fruit and nuts consumption was Germany (369K tonnes), comprising approx. 25% of total volume. Moreover, frozen fruit and nuts consumption in Germany exceeded the figures recorded by the second-largest consumer, France (184K tonnes), twofold. The third position in this ranking was occupied by Italy (149K tonnes), with a 10% share.

In Germany, frozen fruit and nuts consumption expanded at an average annual rate of +2.2% over the period from 2007-2018. The remaining consuming countries recorded the following average annual rates of consumption growth: France (+1.8% per year) and Italy (-5.0% per year).

In value terms, Germany ($632M), France ($389M) and Italy ($272M) constituted the countries with the highest levels of market value in 2018, with a combined 54% share of the total market. These countries were followed by Poland, the UK, Belgium, the Netherlands, Sweden, Austria, Spain, Hungary and Romania, which together accounted for a further 37%.

The countries with the highest levels of frozen fruit and nuts per capita consumption in 2018 were Belgium (6,286 kg per 1000 persons), Austria (5,257 kg per 1000 persons) and Germany (4,509 kg per 1000 persons).

Market Forecast 2019-2025 in the EU

Driven by increasing demand for frozen fruit and nuts in the European Union, the market is expected to continue an upward consumption trend over the next seven-year period. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +1.2% for the period from 2018 to 2025, which is projected to bring the market volume to 1.6M tonnes by the end of 2025.

Production in the EU

In 2018, approx. 951K tonnes of frozen fruit and nuts were produced in the European Union; shrinking by -5.9% against the previous year. Overall, frozen fruit and nuts production continues to indicate a relatively flat trend pattern. Over the period under review, frozen fruit and nuts production attained its maximum volume at 1.1M tonnes in 2016; however, from 2017 to 2018, production stood at a somewhat lower figure.

Production By Country

Poland (351K tonnes) remains the largest frozen fruit and nuts producing country in the European Union, comprising approx. 37% of total volume. It was followed by Spain (127K tonnes) and Italy (122K tonnes), with the combined share of 26%.

From 2007 to 2018, the average annual rate of growth in terms of volume in Poland stood at +1.5%. The remaining producing countries recorded the following average annual rates of production growth: Spain (-1.2% per year) and Italy (-5.8% per year).

Exports in the EU

In 2018, the exports of frozen fruit and nuts in the European Union stood at 885K tonnes, rising by 2.6% against the previous year. The total export volume increased at an average annual rate of +2.3% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded over the period under review. In value terms, frozen fruit and nuts exports totaled $1.7B (IndexBox estimates) in 2018.

Exports by Country

Poland represented the key exporter of frozen fruit and nuts exported in the European Union, with the volume of exports recording 349K tonnes, which was near 39% of total exports in 2018. The Netherlands (117K tonnes) held a 13% share (based on tonnes) of total exports, which put it in second place, followed by Belgium (9.3%), Spain (5.9%) and Germany (5.8%). Italy (34K tonnes), Greece (32K tonnes), France (18K tonnes), Bulgaria (17K tonnes), Austria (17K tonnes), Portugal (15K tonnes) and Lithuania (15K tonnes) occupied a little share of total exports.

From 2007 to 2018, average annual rates of growth with regard to frozen fruit and nuts exports from Poland stood at +2.2%. At the same time, Portugal (+10.7%), France (+7.4%), Bulgaria (+5.0%), the Netherlands (+4.3%), Germany (+3.5%), Italy (+3.3%), Lithuania (+2.0%), Spain (+1.7%) and Greece (+1.4%) displayed positive paces of growth.

Moreover, Portugal emerged as the fastest-growing exporter exported in the European Union, with a CAGR of +10.7% from 2007-2018. Belgium experienced a relatively flat trend pattern. By contrast, Austria (-3.6%) illustrated a downward trend over the same period.

In value terms, Poland ($563M) remains the largest frozen fruit and nuts supplier in the European Union, comprising 33% of total frozen fruit and nuts exports. The second position in the ranking was occupied by the Netherlands ($229M), with a 13% share of total exports. It was followed by Belgium, with a 11% share.

Export Prices by Country

In 2018, the frozen fruit and nuts export price in the European Union amounted to $1,931 per tonne, surging by 5.8% against the previous year. Overall, the frozen fruit and nuts export price continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2011 an increase of 27% year-to-year. The level of export price peaked at $2,304 per tonne in 2008; however, from 2009 to 2018, export prices stood at a somewhat lower figure.

Prices varied noticeably by the country of origin; the country with the highest price was Lithuania ($3,052 per tonne), while Greece ($1,450 per tonne) was amongst the lowest.

Imports in the EU

In 2018, approx. 1.4M tonnes of frozen fruit and nuts were imported in the European Union; surging by 2.5% against the previous year. The total import volume increased at an average annual rate of +2.8% over the period from 2007 to 2018. The volume of imports peaked in 2018 and is expected to retain its growth in the near future. In value terms, frozen fruit and nuts imports amounted to $2.6B (IndexBox estimates) in 2018.

Imports by Country

Germany represented the largest importer of frozen fruit and nuts imported in the European Union, with the volume of imports finishing at 396K tonnes, which was approx. 28% of total imports in 2018. It was distantly followed by France (183K tonnes), the Netherlands (154K tonnes), Belgium (136K tonnes), Poland (93K tonnes), the UK (89K tonnes) and Austria (63K tonnes), together committing a 52% share of total imports.

In value terms, the largest frozen fruit and nuts importing markets in the European Union were Germany ($671M), France ($386M) and the Netherlands ($257M), together comprising 50% of total imports. Belgium, the UK, Poland and Austria lagged somewhat behind, together accounting for a further 28%.

Import Prices by Country

In 2018, the frozen fruit and nuts import price in the European Union amounted to $1,903 per tonne, jumping by 5.4% against the previous year. Overall, the frozen fruit and nuts import price continues to indicate a relatively flat trend pattern.

Average prices varied somewhat amongst the major importing countries. In 2018, major importing countries recorded the following prices: in the UK ($2,256 per tonne) and France ($2,102 per tonne), while the Netherlands ($1,664 per tonne) and Germany ($1,696 per tonne) were amongst the lowest.

Source: IndexBox AI Platform

essential oil
Archives, EU Trade, Global Trade Daily

Essential Oil Market Size Estimated To Reach $16,172.2 Million By 2026

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According to a new report published by Polaris Market Research the essential oil market is anticipated to reach USD $16,172.2 million by 2026. In 2017, the orange essential oil segment dominated the global market, in terms of revenue. Europe is expected to be the leading contributor to the global market revenue during the forecast period.

A significant increase in disposable income, changing lifestyles, and initiatives by market players to promote healthy lifestyles drive the growth of this market. Other driving factors include increasing incidences of stress and anxiety, growing inclination towards the use of natural and organic products, and increasing awareness regarding physical and mental health. The use of essential oils in various applications such as food and beverages, healthcare, pharmaceutical, cosmetics, and aromatherapy further propel market growth. Increasing demand in developing nations is expected to provide numerous growth opportunities to market players during the forecast period.

There has been a shift towards e-commerce and consumers are increasingly purchasing essential oils through online platforms. The variety of choices available coupled with ease of purchase offered by online platforms encourages consumers to buy essential oils online, supplementing the growth of the market.

Improvement in lifestyle due to the rise in income level, especially in the developing countries of Asia-Pacific fuels the demand for essential oils market. Factors such as increase in per capita income and changes in consumer behavior towards physical and mental health are expected to accelerate the adoption of essential oils in the coming years.

Europe generated the highest revenue in the market in 2017, and is expected to lead the global market throughout the forecast period. The high geriatric population in the region coupled with high disposable income drives market growth. The high demand of essential oils in food & beverages and cosmetic products support the market growth in the region. Asia-Pacific is expected to grow at the highest CAGR during the forecast period owing to increasing disposable incomes in developing countries of this region, rising awareness about benefits of essential oils, and rising demand of essential oils from healthcare sector in this region.

The different types of essential oils in the market include lemon, lime, orange, corn mint, eucalyptus, peppermint, citronella, clove leaf, and others. In 2017, the orange essential oil segment accounted for the highest market share. The increasing demand for orange essential oil is owing to properties such as anti-inflammatory, antidepressant, and antispasmodic. Use of orange essential oil has a calming effect on mind and body, and is used in various cosmetics products. It is also used in various foods and beverages to enhance flavor.

The well-known companies profiled in the report include Dōterra International LLC., Rocky Mountain Oils, LLC, Naturals Together, Robertet SA, Now Health Group, Inc., Biolandes SAS, Falcon Essential Oils, Ungerer Limited, The Lebermuth Company, Flavex Naturextrakte GmbH, Farotti Srl, and E. I. Du Pont De Nemours and Company among others. These companies launch new products and collaborate with other market leaders to innovate and launch new products to meet the increasing needs and requirements of consumers.

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For More Information About Essential oil market Please Click The Link Below @  https://www.polarismarketresearch.com/industry-analysis/essential-oil-market/request-for-sample

 

brexit
Archives, EU Trade, Global Trade Daily

What’s Your Brexit Security Strategy?

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Boris Johnson’s new Conservative majority is set to plow forward with leaving the EU on January 31st, 2020, however, what exactly does this mean for Britain’s logistics industry? K9patrol has put together this infographic highlighting concerns and possible issues with the logistics industry post-Brexit.

As we’ve seen so far, there still appears to be uncertainty ahead regarding Brexit, and this could impact logistics especially. With further disruption and delays, new regulations and potential diplomatic breakdown between the UK, the Republic of Ireland and the EU, there does seem to be some very real threats posed to this particular industry. Cargo security, in particular, will be a major concern for many businesses within logistics because of goods that would otherwise be in transit may have a possibility of being sold on or delayed for long periods of time in foreign countries. The EU receives around 50% of our exports, so with this, e should take this possible risk very seriously.

We hope this infographic lays out potential future issues that this may bring, and with this better understand the key political decisions that might affect them and their business.

Any arguments made by the evidence in the infographic is incidental and do not reflect our political opinions as a business.

 

 

 

 

What’s Your Brexit Security Strategy?
Infographic: K9 Patrol

 

 

european
Archives, Global Trade Daily, Special Reports

European Greenhouse: What Climate Change and Green Politics Mean for Business in Europe

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France, Germany and the Netherlands broke 40-year temperature records this year. Traditional wine areas, such as Bordeaux, have had to accept new grape types into the area for the first time in 80 years to combat the devastating impact of new weather patterns. In Germany and other central European countries, large swaths of forest died off this summer due to climate conditions. 

This summer of extreme weather follows on the heels of a dramatic gain in Green party popularity during and after the spring European parliament elections. What does this mean for companies that do business in the European Union? How will markets and regulations change in the near future as a result of rising concern over climate change across the Atlantic?  

European voters (and consumers) and highly concerned about climate change, with many of them naming climate change as the greatest threat to world security. Equally important, there are substantially fewer people in European Union member states who doubt the impact that climate change is having on the world compared to countries such as the United States. 

In a recent poll, thirteen percent of U.S. respondents expressed doubt over the existence of climate change or that it was due to human influence. This American response was the highest level of skepticism in the developed world; double that of Germany or France, and much higher than other countries such as Spain, where polls have shown as little as 2% of the population voicing any doubt as to the reality and danger of climate change.

Why Europe having fewer skeptics matters

Extreme weather in the summer is not a new issue in Europe. The heat wave of 2003 was estimated to have killed as many as 30,000 people in Europe due to the lack of air conditioning and infrastructure to care for those vulnerable to heat strokes, such as the elderly. The heat wave that broke records across the EU this summer was even hotter. These weather changes, hand-in-hand with the sudden surge in Green party success in EU and national elections, underscore that there is both pressing concern over climate change and a willingness to prioritize it among voters. 

Without climate deniers across the political aisle to delay or weaken environmentally-oriented legislation, it is likely that the business environment will soon be dramatically changed as the EU and member state governments adjust policies and regulations to combat climate change and protect their populations from future extreme weather.

Why the ‘American solution’ won’t work and building styles won’t change

The U.S. has extreme heat on a constant basis in places like Arizona and Texas, but the classical solution – to air condition every building – will not work in Europe because energy costs are twice the U.S. average and likely to rise quickly as governments are forced to switch to more expensive (in the short-term) renewable sources. The EU’s renewable energy directive was modified in 2018 to establish a 32% renewable energy target for 2030, which will likely keep energy prices high as more investments are needed to help develop renewable sources such as solar, wave and wind energy ‘farms’.  

Logical efforts to change building materials and styles to improve the ambient temperatures for residents are near impossible to implement in established cities in Europe. Traditional building styles that are intended to save on heating costs by trapping air inside often exacerbate heat waves since these buildings cannot effectively cool. New materials and building styles in the suburbs offer energy-efficient solutions to newer areas, but traditional architectural areas in downtown Prague, Rome and Paris are poorly positioned to embrace these options. It is inevitable that air conditioning use will increase (currently only 5% of European buildings are equipped with air conditioning, compared to 90% in the U.S.) but based on electricity costs and emission reduction goals in the EU, it is only a partial answer to the extreme weather problem.  Europe must find its own solution, and this search for alternatives will open up new opportunities for innovative companies.

What business opportunities appear as Europe combats climate change?

How will consumer habits change in the face of public concern over emissions and fears over ever-worsening extreme weather? What new business opportunities can we expect to see in Europe as Green-leaning governments and climate-conscious voters bring wholesale changes to the regulatory structure of the European Union in an attempt to combat climate change? Three areas of interest jump out: new government and venture capital funding for innovation, sharply increased transportation costs which will change logistics patterns and purchasing habits, and dramatic shifts to the land use and building traditions which should open up opportunities to U.S. companies.

Innovation will be valued and funded as never before

According to the Global Innovation Index for this year, seven of the top ten most innovative nations are located in Europe, and yet the U.S. (number three on the Index) outspent Europe on research and development by 20%. That is not to say that Europe is not investing in climate change innovation. On the contrary, in 2018, the European Investment Bank committed over 16 billion Euros to combating climate change, a number which has increased each year for a decade. Over $23 billion (US) was invested in innovative new European companies through venture capitalism last year alone.  These numbers will shoot up in the years to come as governments scramble to support new solutions to extreme weather challenges and climate change. 

The EU has already announced plans to focus on battery innovation and production, and will legislate an increasing use of renewables; supporting wind, wave and solar power projects to reduce oil, gas and coal use. Cleantech and Greentech projects are surging in clusters such as Cambridge, Copenhagen and Rotterdam. But there is a need for even more venture capital, and a growing recognition that governments will have to step in and add to research and start-up funding, as well as help scale up successful companies to compete regionally and globally.

A dramatic increase in transportation costs will shift production and consumer habits

Much like in the U.S., many European companies have a tendency to source materials and production overseas to lower costs. Unlike the U.S., they have generally been able to avoid the impact of the U.S.-China trade war. However, this breather is short-lived, as the EU seems to recognize the cost of transportation to society in the way of pollution and congestion and is likely going to be forced to ramp up emissions taxes in the near future, which will impact both the external and internal movement of goods. This, in turn, will force companies to recalibrate their logistics and likely move production closer to the point of sale. 

Companies will find that supporting local production becomes more reasonable as transportation costs go up, and EU member states with lower labor costs (under 10 euros an hour) such as Latvia, Lithuania, Romania, and Bulgaria should begin to see production facilities become more competitive compared to Asia as shipping costs increase in the face of emission taxes. Companies that were previously exporting goods into Europe will find that shifting production to Europe in support of EU clients is going to become substantially more cost-friendly (with the added advantage of avoiding import tariffs, should the global trade war broaden).

Land use and building codes are going to shift dramatically

A recent international climate change report supported what European farmers already have experienced: drought and extreme heat are forcing a rethink as to what is produced in Europe and how.  Climate change activists and consumer groups are also dragging EU trade agreements into the spotlight as countries like Brazil are accused of dramatically harming the global environment through wasteful agricultural practices – in part to increase beef sales to Europe. Increasing focus on how land is used and food produced in Europe will open up opportunities for innovative producers and new products (such as meat alternatives) in the European market. At the same time, European builders of new developments are being forced by regulations and consumer sentiment to use more environmentally-friendly materials and styles. 

The U.S. Green Building Council’s LEED certification has become a benchmark in Europe as well, and U.S. companies with know-how in this area of construction and building design can find robust new markets and development and construction partners throughout the EU who will be challenged by new regulations and public scrutiny to ‘green’ up their building projects.

Environmental challenges mean new opportunities for savvy companies

Changes in consumer demands and regulations imposed from the EU to the local level will open doors for companies that can bring in new, efficient and effective products. Governments attempting to be responsive to extreme weather challenges without taxing their voting population too directly (which is what sparked the ‘Yellow Vest’ protests in France) will demand more energy-efficient products and processes from businesses. Innovative companies, ready to expand and take on new challenges, will find it relatively quick and painless to register in the European market to take advantage of the possibilities that are manifesting due to environmental and consumer changes.   

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Kirk Samson is the owner of Samson Atlantic LLC, a Chicago-based international business consulting company which offers market research, political risk assessment, and international negotiations assistance.  Mr. Samson is a former U.S. diplomat and international law advisor who lived and worked in ten different countries.

potatoes
Archives, Global Trade Daily, Imports/Exports

UK’s Dependence on Imports of Frozen Potatoes Increases Markedly

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IndexBox has just published a new report: ‘United Kingdom – Frozen Potatoes – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The revenue of the frozen potato market in the UK amounted to $1.5B in 2018, declining by -2.1% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). Over the period under review, frozen potato consumption, however, continues to indicate a relatively flat trend pattern. Over the period under review, the frozen potato market reached its maximum level at $1.7B in 2014; however, from 2015 to 2018, consumption stood at a somewhat lower figure.

Production in the UK

In 2018, approx. 458K tonnes of frozen potatoes were produced in the UK; approximately mirroring the previous year. Overall, frozen potato production continues to indicate a moderate contraction. The pace of growth appeared the most rapid in 2012 when production volume increased by 6.1% against the previous year. In that year, frozen potato production attained its peak volume of 657K tonnes. From 2013 to 2018, frozen potato production growth failed to regain its momentum. In value terms, frozen potato production amounted to $651M in 2018 estimated in export prices.

Imports into the UK

In 2018, the amount of frozen potatoes imported into the UK totaled 663K tonnes which remained relatively stable against the previous year. The total import volume increased at an average annual rate of +4.2% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, frozen potato imports reached their maximum in 2018 and are likely to see steady growth in the near future. In value terms, frozen potato imports amounted to $641M (IndexBox estimates) in 2018.

Imports by Country

The Netherlands (370K tonnes) and Belgium (268K tonnes) constitute the main suppliers of frozen potato imports to the UK, with a combined 96% share of total imports.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main suppliers, was attained by Belgium.

In value terms, the Netherlands ($359M) and Belgium ($255M) appeared to be the largest frozen potato suppliers to the UK, together comprising 96% of total imports.

Import Prices by Country

The average frozen potato import price stood at $967 per tonne in 2018, picking up by 5.6% against the previous year. Overall, the frozen potato import price, however, continues to indicate a relatively flat trend pattern. Over the period under review, the average import prices for frozen potatoes attained their peak figure at $1,094 per tonne in 2014; however, from 2015 to 2018, import prices remained at a lower figure.

Average prices varied noticeably amongst the major supplying countries. In 2018, the country with the highest price was the Netherlands ($969 per tonne), while the price for Belgium stood at $954 per tonne. From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Belgium.

Source: IndexBox AI Platform

olives
Archives, EU Trade, Global Trade Daily

Spanish Olives in the Pits Over U.S.-EU Trade Tensions

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You’d be hard pressed to find a recipe that doesn’t start with a couple tablespoons of olive oil. Whether you’re roasting pumpkin seeds or dressing a salad, a bottle of EVOO is a must in most kitchen pantries.

Olive oil is a critical ingredient in the Mediterranean diet, known as one of the healthiest diets in history (it’s even been dubbed an “intangible cultural heritage” by UNESCO). Its popularity has been building in the United States since the 1990s and has skyrocketed in recent years. Americans now consume 90 million gallons of “liquid gold” each year. But since we produce just five percent of the amount we consume each year, Americans are dependent on imports from other countries, mainly Spain and Italy, to keep us well stocked.

Ripe olives are a critical ingredient for olive oil. They’ve also been ripe with trade tension over the past two years. Spanish black olives, green olives and olive oil have all been embroiled in two recent trade disputes between the United States and the European Union (EU), resulting in higher tariffs and increased prices of Spanish olives and olive oils for U.S. consumers.

Americans consume 90 million gallons of olive oil annually

The art of olive oil

Autumn marks the start of olive harvesting season across the globe. Olives grow on trees in subtropical climates, turning from green to purple and ultimately black by the end of fall.

To make olive oil, fresh olives are picked or shaken from trees in fields and then rushed to the mill, where they are cleaned and ground into a paste. The paste is stirred with water to release oil droplets, and then spun in a centrifuge which separates the oil from the water, leaving fresh olive oil behind. It takes up to 11 pounds of olives to produce just one liter of olive oil.

The art of olive oil production was perfected by the Romans. Oil from Hispania (modern-day Spain) was the most prized in the Roman Empire. Spain has continued the tradition and is the world’s largest producer of olives and olive oil today. It produces nearly 1.3 million tons of olive oil a year, with 80 percent produced in its southern Andalusia region.

Ground and spun

United States consumption of olive oil has increased 257 percent since the 1990s. In addition to reading about olive oil in your cookbook, you may have also read about it in news headlines recently, due to an ongoing dispute at the World Trade Organization (WTO) involving airplanes.

US consumption of olive oil since 1990

This September the United States won the largest WTO arbitration award ever over illegal EU subsidies to its aircraft industry. The WTO approved the United States to levy up to $7.5 billion a year in retaliatory tariffs on EU products until they remove the subsidies.

Following the WTO ruling, the U.S. Trade Representative (USTR) announced that the U.S. will implement tariffs of 10 percent on civilian aircraft and 25 percent tariffs on a long list of EU products like butter, cheeses and whiskies starting October 18. The list also included green olives and olive oil from France, Germany, Spain and the United Kingdom. Other major European olive oil producers, Italy and Greece, were not included.

This 25 percent tariff is a double whammy for Spanish olive producers, who were hit with U.S. duties on ripe black olive exports last year.

In the pit of the olive dispute

In August 2018, the U.S. Department of Commerce imposed duties of up to 27 percent on Spanish black olive exports as part of an antidumping and countervailing duty case initiated by Californian olive growers.

California growers argued that Spanish black olives were being dumped in the United States market at lower prices than the domestic market in Spain, and that subsidies under the European Common Agriculture Policy (CAP) were allowing Spanish producers to benefit from an unfair advantage. After an investigation, the Department of Commerce and U.S. International Trade Commission agreed with the California growers’ assertions and placed duties on Spanish imports.

In January 2019, the EU took the case to the WTO arguing that the EU’s CAP program is in line with WTO rules and thus the United State may not apply countervailing duties on Spanish olive imports. The EU sees the case as having “far-reaching consequences” since the case effectively challenges the EU’s agricultural model. WTO members have agreed to the EU’s request for a dispute panel to review the U.S. tariffs.

In the meantime, Spanish producers are already feeling the pain. In 2017, before the tariffs were imposed, the United States imported an estimated $67.6 million worth of ripe olives from Spain. In the first two months after the U.S. imposed tariffs, exports fell by 72 percent, according to the Spanish Association of Olive Exporters.

The overall impact of the tariffs is estimated at 350 and 700 million euros over the next five to 10 years, according to a March 2018 European Parliament report. The tariffs could even “potentially lead to the end of Spanish ripe olive exports,” the report says.

To make matters worse for Spanish olive producers, olive oil prices have dropped significantly over the last two years. Reuters reported that tens of thousands of olive producers from southern Spain marched to Madrid in October in protest of low prices and U.S. tariffs.

Where is the olive branch?

Throughout history olive branches have been used to symbolize peace. However, in recent years olives have become a source of argument between the United States and the European Union, and have also been caught in the crosshairs of other trade disputes.

Olives are just one item on a long list of trade issues between the United States and the European Union. The two shelved Transatlantic Trade and Investment Partnership (TTIP) talks in 2016. They restarted bilateral talks in July 2018, where they agreed to work toward zero tariffs, but have since stalled over U.S. demands to include agriculture in the discussions, which the EU has not agreed.

Unfortunately for Spanish olive producers looking for relief from U.S. tariffs, a deal soon does not look likely. And olive oil, unlike wine, does not get better with age.

________________________________________________________________

Lauren Kyger

 

Lauren Kyger is Associate Editor for TradeVistas. Prior to joining TradeVistas, she was a Research Associate at the Hinrich Foundation focused on international trade issues. She is a Hinrich Foundation Global Trade Leader Scholar alumna, earning her Master’s degree in Global Business Journalism from Tsinghua University in Beijing. She received her Bachelor’s degree from the Walter Cronkite School of Journalism and Mass Communication at Arizona State University.

This article originally appeared on TradeVistas.org. Republished with permission.
soya
Archives, EU Trade, Global Trade Daily

European Soya Sauce Market to Keep Growing Modestly in the Near Future

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IndexBox has just published a new report: ‘EU – Soya Sauce – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

In 2018, the revenue of the EU’s soya sauce market reached $704M in 2018. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

Consumption By Country in the EU

The countries with the highest volumes of soya sauce consumption in 2018 were Germany (28K tonnes), France (20K tonnes) and the UK (19K tonnes), with a combined 44% share of total consumption. The Netherlands, Spain, Poland, Romania, Belgium, Greece, Italy, Portugal and Ireland lagged somewhat behind, together accounting for a further 41%.

From 2008 to 2018, the most notable rate of growth in terms of soya sauce consumption, amongst the main consuming countries, was attained by Italy, while the other leaders experienced more modest paces of growth.

In value terms, France ($400M) led the market, alone. The second position in the ranking was occupied by Spain ($82M). It was followed by Germany.

The countries with the highest levels of soya sauce per capita consumption in 2018 were the Netherlands (928 kg per 1000 persons), Ireland (698 kg per 1000 persons) and Belgium (432 kg per 1000 persons).

From 2008 to 2018, the most notable rate of growth in terms of soya sauce per capita consumption, amongst the main consuming countries, was attained by Italy, while the other leaders experienced more modest paces of growth.

Market Forecast 2019-2025 in the EU

Driven by increasing demand for soya sauce in the European Union, the market is expected to continue an upward consumption trend over the next seven-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +2.0% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 173K tonnes by the end of 2025.

Production in the EU

In 2018, approx. 99K tonnes of soya sauce were produced in the European Union; standing approx. at the previous year. The total output indicated a buoyant expansion from 2008 to 2018: its volume increased at an average annual rate of +4.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, soya sauce production increased by +38.6% against 2014 indices. The most prominent rate of growth was recorded in 2015 when production volume increased by 22% year-to-year. Over the period under review, soya sauce production reached its maximum volume at 99K tonnes in 2017, leveling off in the following year.

In value terms, soya sauce production totaled $261M in 2018 estimated in export prices. The total output indicated perceptible growth from 2008 to 2018: its value increased at an average annual rate of +4.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, soya sauce production increased by +36.0% against 2014 indices. The growth pace was the most rapid in 2017 when production volume increased by 30% y-o-y. The level of soya sauce production peaked in 2018 and is likely to see steady growth in the immediate term.

Exports in the EU

In 2018, the amount of soya sauce exported in the European Union amounted to 73K tonnes, picking up by 9% against the previous year. Over the period under review, soya sauce exports continue to indicate strong growth. The most prominent rate of growth was recorded in 2010 with an increase of 64% y-o-y. Over the period under review, soya sauce exports attained their maximum in 2018 and are expected to retain its growth in the immediate term.

In value terms, soya sauce exports totaled $167M (IndexBox estimates) in 2018. The total exports indicated a resilient expansion from 2008 to 2018: its value increased at an average annual rate of +7.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, soya sauce exports increased by +34.4% against 2015 indices. The growth pace was the most rapid in 2010 when exports increased by 70% year-to-year. Over the period under review, soya sauce exports reached their maximum at $190M in 2014; however, from 2015 to 2018, exports stood at a somewhat lower figure.

Exports by Country

The Netherlands prevails in soya sauce exports structure, recording 53K tonnes, which was near 72% of total exports in 2018. The UK (7,195 tonnes) took the second position in the ranking, followed by Germany (3,587 tonnes). All these countries together occupied approx. 15% share of total exports. Poland (2,406 tonnes), Belgium (2,013 tonnes) and Sweden (1,528 tonnes) followed a long way behind the leaders.

From 2008 to 2018, average annual rates of growth with regard to soya sauce exports from the Netherlands stood at +9.4%. At the same time, Sweden (+24.0%), the UK (+13.8%), Germany (+4.7%) and Belgium (+3.8%) displayed positive paces of growth. Moreover, Sweden emerged as the fastest-growing exporter in the European Union, with a CAGR of +24.0% from 2008-2018. By contrast, Poland (-4.2%) illustrated a downward trend over the same period. While the share of the Netherlands (+43 p.p.), the UK (+7.1 p.p.), Sweden (+1.8 p.p.) and Germany (+1.8 p.p.) increased significantly in terms of the total exports from 2008-2018, the share of Poland (-1.7 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the Netherlands ($118M) remains the largest soya sauce supplier in the European Union, comprising 71% of total soya sauce exports. The second position in the ranking was occupied by the UK ($12M), with a 7.4% share of total exports. It was followed by Germany, with a 6.5% share.

In the Netherlands, soya sauce exports increased at an average annual rate of +6.0% over the period from 2008-2018. In the other countries, the average annual rates were as follows: the UK (+9.0% per year) and Germany (+3.5% per year).

Export Prices by Country

The soya sauce export price in the European Union stood at $2,273 per tonne in 2018, surging by 4.2% against the previous year. Overall, the soya sauce export price, however, continues to indicate a measured curtailment. The most prominent rate of growth was recorded in 2017 when the export price increased by 5.2% year-to-year. The level of export price peaked at $2,978 per tonne in 2011; however, from 2012 to 2018, export prices stood at a somewhat lower figure.

Prices varied noticeably by the country of origin; the country with the highest price was Belgium ($4,635 per tonne), while Poland ($1,237 per tonne) was amongst the lowest.

From 2008 to 2018, the most notable rate of growth in terms of prices was attained by Belgium, while the other leaders experienced a decline in the export price figures.

Imports in the EU

The imports stood at 125K tonnes in 2018, surging by 9.7% against the previous year. The total imports indicated a buoyant expansion from 2008 to 2018: its volume increased at an average annual rate of +7.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, soya sauce imports increased by +110.9% against 2008 indices. The pace of growth appeared the most rapid in 2013 when imports increased by 17% against the previous year. The volume of imports peaked in 2018 and are expected to retain its growth in the immediate term.

In value terms, soya sauce imports stood at $240M (IndexBox estimates) in 2018. The total imports indicated a prominent increase from 2008 to 2018: its value increased at an average annual rate of +7.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, soya sauce imports increased by +33.9% against 2015 indices. The pace of growth appeared the most rapid in 2013 when imports increased by 21% year-to-year. The level of imports peaked in 2018 and are expected to retain its growth in the near future.

Imports by Country

In 2018, the Netherlands (22K tonnes), the UK (20K tonnes), France (19K tonnes) and Germany (18K tonnes) represented the largest importers of soya sauce in the European Union, constituting 63% of total import. Spain (8,777 tonnes) took a 7% share (based on tonnes) of total imports, which put it in second place, followed by Belgium (5.1%). Italy (5,011 tonnes), Sweden (3,955 tonnes), Poland (3,450 tonnes), Ireland (3,432 tonnes), Finland (2,640 tonnes) and Austria (2,487 tonnes) followed a long way behind the leaders.

From 2008 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Finland, while the other leaders experienced more modest paces of growth.

In value terms, France ($38M), Germany ($37M) and the Netherlands ($36M) appeared to be the countries with the highest levels of imports in 2018, together comprising 46% of total imports. These countries were followed by the UK, Spain, Italy, Belgium, Sweden, Ireland, Poland, Austria and Finland, which together accounted for a further 46%.

Among the main importing countries, Italy experienced the highest growth rate of imports, over the last decade, while the other leaders experienced more modest paces of growth.

Import Prices by Country

The soya sauce import price in the European Union stood at $1,919 per tonne in 2018, increasing by 1.7% against the previous year. In general, the soya sauce import price continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2011 when the import price increased by 5.2% year-to-year. Over the period under review, the import prices for soya sauce reached their maximum at $2,073 per tonne in 2013; however, from 2014 to 2018, import prices stood at a somewhat lower figure.

Prices varied noticeably by the country of destination; the country with the highest price was Italy ($2,588 per tonne), while the Netherlands ($1,606 per tonne) was amongst the lowest.

From 2008 to 2018, the most notable rate of growth in terms of prices was attained by Sweden, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

trade
Archives, Global Trade Daily, International Trade

Peeling Away Trade Protections for Bananas

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Simple in appearance, pleasantly sweet, nutritious, and nearly universal in appeal, that Cavendish bunch of bananas on your counter comes off as pretty unassuming. In reality, it has been through jungle wars and trade wars and now sits on the precipice of extinction. More than half of the bananas traded globally are the Cavendish variety. But with two diseases threatening the world’s largest Cavendish plantations, growing to love more varieties could help save trade in bananas.

Still an Important Cash Crop

Grown in more than 150 countries, bananas are the eighth most important food crop in the world – fourth most important in developing countries. Bananas are among the most traded fruit in the world, generating revenues of more than $8 billion a year for the top banana exporters including Ecuador, the Philippines, Costa Rica, Colombia and Guatemala. However, most are produced for local or national consumption.

For example, the Food and Agriculture Organization estimates that between 70 and 80 percent of bananas in Africa are produced by smallholder farmers. Around 114 million tons are produced globally beyond what isn’t too small to be counted, yet only 19 million tons were shipped globally. That said, for the top five exporters, bananas are a major contributor to the total value of their agricultural exports. India and China are among the biggest producers but their output mainly serves the large domestic markets.

global bananas trade

Peeling Away Trade Protections

The Banana Wars, centered on the European Union’s (EU) banana trade regime, spanned 20 years as the longest running series of disputes in the multilateral trading system to date (although the Boeing-Airbus dispute may be on track to take that title). As one of the most significant episodes in trade law, the Banana Wars are deserving of more attention, but here are some abridged highlights.

Europe’s banana regime began as an umbrella for complex arrangements at the individual EU Member State level that were designed to offer exclusive or preferential access to former colonies in Africa, Caribbean and the Pacific (ACP), and at the same time shield EU producers from competition.

Under the EU’s original regime, ACP countries received a zero-tariff rate while imports from other countries were taxed at 20 percent. However, each Member State was allowed to “derogate” and maintain special protective provisions for imports from their overseas departments. For example, France set aside two-thirds of its market for Guadeloupe and Martinique and the remaining third for the ACP Franc Zone states of Cameroon and Cote d’Ivoire. The Spanish market was reserved for shipments from the Canary Islands. Greece banned imports to protect its own production in Crete. Only Germany opened to free trade.

The Single European Act of 1986 mandated an integrated EU market by January 1993, which required that Member States consolidate their programs into a common regime for bananas. As devised, this version still enabled members to discriminate among imports by source, offering better terms to their overseas departments and to imports from ACP countries. Colombia, Costa Rica, Guatemala, Nicaragua and Venezuela (supported by the United States) challenged the regime as inconsistent with the EU’s obligations under the GATT.

The EU’s ability to offer tariff preferences was upheld because it had a waiver in the GATT for its general tariff preference program; but the GATT Panel found the EU’s discrimination through tariff quotas to be inconsistent with its obligations. However, prior to the WTO, a GATT member could simply veto the outcome of a panel decision, enabling the EU effectively to ignore the GATT Panel ruling.
EU banana imports

Second Banana

The EU revised its banana regime in 1993 to include new special distribution licenses under a general quota. Licenses were divvied up among primary importers and importers performing secondary activities such as customs clearance, warehousing and storage; licenses were dependent on historical performance, subject to country allocations, market share and other criteria. After yet another challenge by the five Latin American countries, a GATT Panel found in 1994 that the EU’s licensing system was excessively restrictive and not covered by its waiver.

After 1995, with the WTO’s enforceable dispute settlement system in place and additional obligations to avoid discrimination in trade in services, the EU recognized it would face more challenges to its regime. The large multinational producers involved in shipping, warehousing, ripening, marketing and distribution had an even stronger case to make. The EU negotiated with all of the disgruntled Latin American producers but Guatemala to head off the legal challenge. Having offered additional or expanded quotas, they temporarily pleased some countries but further worsened the discriminatory effect for those countries not a part of the negotiation.

A third complaint against the EU’s banana regime was reviewed in the WTO in 1996, this time with the United States as the lead plaintiff in response to complaints from Chiquita and the Hawaiian Banana Association. A WTO decision in 1997 again concluded that, although the EU’s discriminatory tariffs were covered under its historical waiver, its tariff quota allocations and convoluted import licensing administration violated its WTO obligations. The EU’s next version of its banana regime did little to remedy the discriminatory elements, which led to the imposition of tariffs by the United States and Ecuador in response to the EU’s failure to comply with the WTO ruling. By 2001, the EU made another attempt to transition its system, but not until 2006 would the EU decide to phase in a tariff-only system, dispensing with quotas.

Banana Splits

At the end of 2009, after negotiations with non-ACP producers, the EU agreed to reduce the tariff rate it applies to all WTO members. Tariffs would come down from 176 euros per ton to 114 euros per ton by January 2017 (stipulating it could revert to higher rates if exporting countries exceed a “trigger” amount of imports). It wouldn’t be until 2012, that the EU and 10 Latin American countries finalized signed an agreement in the WTO to codify the revised EU banana tariff schedule (“The Geneva Banana Agreement”), officially closing the longstanding legal disputes.

As a prologue, the EU signed trade agreements with Andean and Central American countries in 2013 and Ecuador in 2017. Ecuador has seen a large bump in global export volume as its agreement with the EU is implemented. By next year, the tariff on bananas from Ecuador to the EU will go down to 75 euros per ton with no quota on the amount eligible for this rate. As the EU continues to edge toward “freer” trade in bananas, the ACP producers will face considerable adjustment.

2009 Geneva Banana Agreement

Going Bananas

Having survived the banana trade wars, the popular Cavendish banana faces a new challenge, one that could actually wipe them out.

“Panama disease TR4” has ravaged thousands of acres of Cavendish plantations throughout Southeast Asia and Australia and is spreading to Africa and the Middle East. It can lie dormant in soil for decades and has proven resistant to fungicides and fumigants. It is only a matter of time before TR4 takes hold in Latin America, which supplies nearly the entire U.S. market. Banana plantations in the Caribbean are threatened by another disease called Black Sigatoka, which has been reducing banana yields by 40 percent every year in affected areas.

Before Cavendish was top banana, a banana called the Gros Michel (Big Mike) dominated the banana trade in the early 1900s until the fungus TR1 took it to the brink of extinction in the mid-1950s. At that time, the Cavendish variety from China was discovered to be resistant to TR1 so it replaced Mike. But bananas don’t have seeds. They breed asexually so they cannot recombine their genes to ward off threats. In other words, the Cavendish is ripe for attack because it cannot evolve – every generation is a clone of the previous.

Try Hanging with a New Bunch

If scientists don’t make a breakthrough, TR4 and TR1 could spell the end for the beloved Cavendish. With over 1,000 different varieties of bananas growing around the world, why not get to know some others that might grow more popular through trade – here are a few to get you started.

For your next dessert, try using Niño, Manzano (“apple bananas”) that have a hint of apple and strawberry flavor, or Goldfinger, a newer variety from Honduras. Intriguingly, there’s also Blue Java, named for its blue skin, which has a creamy, ice cream-like texture and purportedly offers a subtle vanilla flavor.

Cooking bananas include the Macho plantain and other fun-sounding varieties like the Burro which has squared sides and a lemon flavor when ripe, and the Rhino Horn from Africa, which can grow up to two feet long. If consumers demand it, perhaps global trade in bananas will finally branch out.

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Andrea Durkin is the Editor-in-Chief of TradeVistas and Founder of Sparkplug, LLC. Ms. Durkin previously served as a U.S. Government trade negotiator and has proudly taught international trade policy and negotiations for the last fourteen years as an Adjunct Professor at Georgetown University’s Master of Science in Foreign Service program.

This article originally appeared on TradeVistas.org. Republished with permission.

 

dog and cat food
Archives, Global Trade Daily, Imports/Exports

EU Dog And Cat Food Market Is Set to Reach 9.6M Tonnes by 2025

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IndexBox has just published a new report: ‘EU – Dog And Cat Food – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

The revenue of the dog and cat food market in the European Union amounted to $12.1B in 2018, surging by 3.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +1.1% over the period from 2008 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being observed over the period under review. The pace of growth appeared the most rapid in 2013 when the market value increased by 8.1% year-to-year. In that year, the dog and cat food market attained its peak level of $12.6B. From 2014 to 2018, the growth of the dog and cat food market remained at a somewhat lower figure.

Consumption By Country in the EU

The countries with the highest volumes of dog and cat food consumption in 2018 were the UK (1.5M tonnes), France (1.3M tonnes) and Germany (1.3M tonnes), together accounting for 45% of total consumption. Spain, Italy, Poland, the Netherlands, Portugal, Sweden, Belgium, Romania and Hungary lagged somewhat behind, together comprising a further 42%.

From 2008 to 2018, the most notable rate of growth in terms of dog and cat food consumption, amongst the main consuming countries, was attained by Romania, while the other leaders experienced more modest paces of growth.

In value terms, the largest dog and cat food markets in the European Union were the UK ($2.7B), France ($2.3B) and Germany ($2B), together accounting for 57% of the total market. These countries were followed by Italy, Spain, Sweden, the Netherlands, Poland, Belgium, Hungary, Portugal and Romania, which together accounted for a further 32%.

The countries with the highest levels of dog and cat food per capita consumption in 2018 were Sweden (32 kg per person), Portugal (31 kg per person) and Hungary (25 kg per person).

From 2008 to 2018, the most notable rate of growth in terms of dog and cat food per capita consumption, amongst the main consuming countries, was attained by Romania, while the other leaders experienced more modest paces of growth.

Market Forecast 2019-2025 in the EU

Driven by increasing demand for dog and cat food in the European Union, the market is expected to continue an upward consumption trend over the next seven-year period. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +1.1% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 9.6M tonnes by the end of 2025.

Production in the EU

In 2018, the production of dog and cat food in the European Union stood at 9.8M tonnes, flattening at the previous year. The total output volume increased at an average annual rate of +1.8% from 2008 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2010 with an increase of 4.1% against the previous year. Over the period under review, dog and cat food production attained its peak figure volume at 9.8M tonnes in 2017, leveling off in the following year.

In value terms, dog and cat food production amounted to $13.1B in 2018 estimated in export prices. The total output value increased at an average annual rate of +1.4% from 2008 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being recorded over the period under review. The most prominent rate of growth was recorded in 2013 when production volume increased by 13% against the previous year. In that year, dog and cat food production attained its peak level of $13.6B. From 2014 to 2018, dog and cat food production growth remained at a somewhat lower figure.

Production By Country in the EU

The countries with the highest volumes of dog and cat food production in 2018 were France (1.8M tonnes), Germany (1.4M tonnes) and the UK (1.2M tonnes), with a combined 45% share of total production. Spain, Hungary, the Netherlands, Italy and Poland lagged somewhat behind, together accounting for a further 37%.

From 2008 to 2018, the most notable rate of growth in terms of dog and cat food production, amongst the main producing countries, was attained by Poland, while the other leaders experienced more modest paces of growth.

Exports in the EU

In 2018, the amount of dog and cat food exported in the European Union amounted to 5.5M tonnes, increasing by 2.9% against the previous year. The total export volume increased at an average annual rate of +4.0% over the period from 2008 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2017 when exports increased by 9% against the previous year. The volume of exports peaked in 2018 and are expected to retain its growth in the near future.

In value terms, dog and cat food exports stood at $9.2B (IndexBox estimates) in 2018. The total exports indicated a strong expansion from 2008 to 2018: its value increased at an average annual rate of +4.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, dog and cat food exports increased by +29.5% against 2015 indices. The growth pace was the most rapid in 2013 with an increase of 16% year-to-year. Over the period under review, dog and cat food exports reached their maximum in 2018 and are likely to see steady growth in the immediate term.

Exports by Country

In 2018, Germany (829K tonnes), France (807K tonnes), the Netherlands (572K tonnes), Poland (527K tonnes) and Hungary (517K tonnes) were the main exporters of dog and cat food in the European Union, comprising 59% of total export. It was distantly followed by Spain (323K tonnes), Ireland (309K tonnes), the UK (272K tonnes), the Czech Republic (266K tonnes), Belgium (260K tonnes) and Italy (252K tonnes), together comprising a 31% share of total exports.

From 2008 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by Poland, while the other leaders experienced more modest paces of growth.

In value terms, the largest dog and cat food markets in the European Union were Germany ($1.8B), France ($1.5B) and the Netherlands ($1.1B), together comprising 48% of total exports. Poland, Belgium, Hungary, the UK, the Czech Republic, Italy, Ireland and Spain lagged somewhat behind, together accounting for a further 41%.

Poland recorded the highest rates of growth with regard to exports, in terms of the main exporting countries over the last decade, while the other leaders experienced more modest paces of growth.

Export Prices by Country

The dog and cat food export price in the European Union stood at $1,668 per tonne in 2018, going up by 7.5% against the previous year. Overall, the dog and cat food export price continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2011 an increase of 11% against the previous year. The level of export price peaked at $1,730 per tonne in 2014; however, from 2015 to 2018, export prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2018, the country with the highest price was Germany ($2,124 per tonne), while Spain ($885 per tonne) was amongst the lowest.

From 2008 to 2018, the most notable rate of growth in terms of prices was attained by the Czech Republic, while the other leaders experienced more modest paces of growth.

Imports in the EU

The imports totaled 4.6M tonnes in 2018, surging by 2.7% against the previous year. The total import volume increased at an average annual rate of +2.9% over the period from 2008 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2012 with an increase of 8.1% y-o-y. Over the period under review, dog and cat food imports attained their peak figure in 2018 and are expected to retain its growth in the near future.

In value terms, dog and cat food imports totaled $7.7B (IndexBox estimates) in 2018. The total import value increased at an average annual rate of +3.6% from 2008 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2017 when imports increased by 14% against the previous year. Over the period under review, dog and cat food imports reached their peak figure in 2018 and are likely to see steady growth in the near future.

Imports by Country

The countries with the highest levels of dog and cat food imports in 2018 were Germany (646K tonnes), the UK (528K tonnes), Belgium (392K tonnes), France (374K tonnes), Italy (342K tonnes), Poland (290K tonnes), the Netherlands (288K tonnes), Austria (251K tonnes), Spain (196K tonnes), Romania (186K tonnes) and Portugal (179K tonnes), together resulting at 79% of total import. Greece (109K tonnes) held a little share of total imports.

From 2008 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Romania, while the other leaders experienced more modest paces of growth.

In value terms, Germany ($1.3B), the UK ($878M) and France ($638M) were the countries with the highest levels of imports in 2018, with a combined 36% share of total imports. Italy, Poland, Belgium, the Netherlands, Austria, Spain, Portugal, Romania and Greece lagged somewhat behind, together comprising a further 45%.

Among the main importing countries, Poland experienced the highest rates of growth with regard to imports, over the last decade, while the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2018, the dog and cat food import price in the European Union amounted to $1,654 per tonne, rising by 2.5% against the previous year. Overall, the dog and cat food import price continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2011 when the import price increased by 11% y-o-y. The level of import price peaked at $1,718 per tonne in 2014; however, from 2015 to 2018, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2018, the country with the highest price was Germany ($1,976 per tonne), while Romania ($874 per tonne) was amongst the lowest.

From 2008 to 2018, the most notable rate of growth in terms of prices was attained by Poland, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform