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The UAE Foreign Direct Investment (FDI) Law

uae

The UAE Foreign Direct Investment (FDI) Law

For a great many years, global businesses have viewed the United Arab Emirates as an attractive global investment market. With a strong presence of high-net-worth consumers and a geographically strategic location from which to distribute throughout the Middle East and North Africa, the UAE is rife with opportunity.

Yet, many international corporations could not own companies outright in the UAE and were restricted to a maximum ownership of 49%. Ownership laws, however, are now being revisited to diversify the country’s economy beyond the energy sector, which has been the source of UAE wealth for decades. But precisely the degree to which economic liberalization is taking place is very much based on one’s perspective.

Background

The United Arab Emirates (UAE), a federation of seven Emirates (member states), has served as a global centre for trade for centuries. However, most global businesses had often expressed discomfort with the country’s investment laws which, despite allowing 100 percent foreign ownership of businesses in the country’s Free Trade Zones (FTZs), stipulated that at least 51 percent of a company established  within the UAE, and outside a Free Trade Zone, must be owned by UAE citizens, or companies wholly owned by UAE citizens.

In addition, agency and distributor laws require that only a local commercial agent could sell products in the UAE market; and only UAE citizens or companies wholly owned by UAE citizens could register with the Ministry of Economy as commercial agents. Regulations also prevent the termination, or non-renewal, of a commercial agency contract unless the principal has a material reason to justify the termination or non-renewal; and the principal must often approach a court to terminate a contract.

Legislating Economic Diversification

The most recent Trade Policy Statement issued by the UAE through the World Trade Organization’s Trade Policy Review mechanism in 2016 stated the country aims to drive towards economic diversification by being less reliant on the oil sector and to increase its attractiveness to foreign investment.

The UAE enacted Federal Law No. 19, the Foreign Direct Investment Law (FDI Law) in November 2018. To promote and develop the investment environment and attract foreign direct investment in line with the developmental policies of the country, the Law established a framework for the country’s Cabinet to mandate which sectors and activities of the economy would be eligible for 100 percent foreign ownership. However, a list of eligible economic sectors and activities was not published by the UAE Cabinet until July 2019.

The list comprised of 122 economic activities across 13 sectors that would be eligible for up to 100 percent foreign ownership. The decision simultaneously conveyed that each emirate (member state of the UAE) could determine the percentage of foreign ownership under each activity suggesting that foreign ownership levels could vary from emirate to emirate. It was also clarified that oil & gas production and exploration sectors, air transport, and security and military sectors would be excluded from the purview of the FDI Law.

A Method of Recourse

It is also of interest that news reports indicate that for activities that are not included in the list of activities/sectors eligible for 100 percent foreign ownership, companies could approach the government for permission for a higher level of ownership; and that approvals may be granted on a case-by-case basis. The sectors that would allow 100 percent foreign ownership include:

-Space

-Renewable Energy

-Agriculture

Manufacturing

-Road Transport & Storage

-Hospitality and Food Services

-Information and Communication Services

-Professional, Scientific and Technical activities

-Administration and Support Services

-Education

-Healthcare

-Art & Entertainment; and

-Construction

For those businesses that do qualify under the FDI law, their products will be treated as being of UAE origin and therefore, eligible for such treatment under international agreements to which the UAE is a party. This is a privilege that is not available to goods manufactured by foreign-owned companies based in UAE Free Trade Zones. In addition, they can transfer abroad operating profits and proceeds from sale of investment or other assets.

Measuring Success

The Emirate of Dubai has reported that it has attracted US $12.7 billion in foreign direct investment (FDI) in the first half of 2019 thereby ranking the emirate third globally in FDI capital flows into Greenfield Projects. Also, in October 2019, Dubai assumed the presidency of the World Association of Investment Promotion Agencies (WAIPA), a global entity that works for the smooth flow of cross-border investments.

Although it is still too early to gauge the impact of the FDI Law and other developments, the consensus is that the UAE has taken steps to accelerate foreign direct investment into the country. It remains to be seen whether further steps such as changes to the agency and distributor laws, and changes to regulations related to the termination of agency contracts will be implemented to enhance the attractiveness of the UAE to foreign investors.

___________________________________________________________

JC Pachakkil is a senior consultant in Global Trade Management at trade services firm Livingston International.

colouring

Germany’s Market for Vegetable or Animal Colouring Matter Rose 13% to Reach $91M in 2018

IndexBox has just published a new report: ‘Germany – Colouring Matter Of Vegetable Or Animal Origin – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

The revenue of the market for colouring matter of vegetable or animal origin in Germany amounted to $91M in 2018, going up by 13% 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 +2.8% from 2008 to 2018; however, the trend pattern remained relatively stable, with only minor fluctuations being recorded over the period under review. The growth pace was the most rapid in 2012 with an increase of 19% year-to-year. Over the period under review, the market for vegetable or animal colouring matter reached its peak figure level in 2018 and is likely to see steady growth in the near future.

Production in Germany

In 2018, the production of colouring matter of vegetable or animal origin in Germany stood at 9.7K tonnes, increasing by 37% against the previous year. Over the period under review, production of colouring matter of vegetable or animal origin continues to indicate a resilient increase. The pace of growth appeared the most rapid in 2012 when production volume increased by 48% year-to-year. Production of colouring matter of vegetable or animal origin peaked in 2018 and is expected to retain its growth in the immediate term.

In value terms, production of colouring matter of vegetable or animal origin amounted to $65M in 2018 estimated in export prices. In general, production of colouring matter of vegetable or animal origin continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2014 when production volume increased by 12% year-to-year. In that year, production of colouring matter of vegetable or animal origin reached its peak level of $74M. From 2015 to 2018, production of colouring matter of vegetable or animal origin growth remained at a somewhat lower figure.

Exports from Germany

In 2018, approx. 4.3K tonnes of colouring matter of vegetable or animal origin were exported from Germany; picking up by 2.3% against the previous year. The total export volume increased at an average annual rate of +3.2% over the period from 2008 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations over the period under review. The pace of growth was the most pronounced in 2010 when exports increased by 18% against the previous year. Exports peaked in 2018 and are expected to retain its growth in the immediate term.

In value terms, exports of colouring matter of vegetable or animal origin totaled $91M (IndexBox estimates) in 2018. The total export value increased at an average annual rate of +3.1% from 2008 to 2018; the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The most prominent rate of growth was recorded in 2010 when exports increased by 43% year-to-year. Exports peaked at $109M in 2011; however, from 2012 to 2018, exports failed to regain their momentum.

Exports by Country

Ukraine (414 tonnes), the Netherlands (371 tonnes) and France (318 tonnes) were the main destinations of exports of colouring matter of vegetable or animal origin from Germany, with a combined 26% share of total exports.

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

In value terms, the largest markets for vegetable or animal colouring matter exported from Germany were the Netherlands ($8.6M), the UK ($8.4M) and France ($6.4M), with a combined 26% share of total exports. Hungary, Italy, Spain, Poland, Belgium, Israel, Turkey, Ukraine and Austria lagged somewhat behind, together comprising a further 39%.

Hungary experienced the highest growth rate of exports, among the main countries of destination over the last decade, while the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2018, the average export price for colouring matter of vegetable or animal origin amounted to $21,162 per tonne, growing by 7.1% against the previous year. Over the period under review, the export price for colouring matter of vegetable or animal origin, however, continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2011 an increase of 30% y-o-y. In that year, the average export prices for colouring matter of vegetable or animal origin attained their peak level of $30,856 per tonne. From 2012 to 2018, the growth in terms of the average export prices for colouring matter of vegetable or animal origin failed to regain its momentum.

There were significant differences in the average prices for the major foreign markets. In 2018, the country with the highest price was Hungary ($32,531 per tonne), while the average price for exports to Ukraine ($7,105 per tonne) was amongst the lowest.

From 2008 to 2018, the most notable rate of growth in terms of prices was recorded for supplies to Hungary, while the prices for the other major destinations experienced more modest paces of growth.

Imports into Germany

Imports of colouring matter of vegetable or animal origin into Germany totaled 5.5K tonnes in 2018, jumping by 7% against the previous year. The total import volume increased at an average annual rate of +4.0% from 2008 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2010 when imports increased by 17% against the previous year. Imports peaked in 2018 and are likely to continue its growth in the near future.

In value terms, imports of colouring matter of vegetable or animal origin stood at $107M (IndexBox estimates) in 2018. In general, the total imports indicated resilient 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, imports of colouring matter of vegetable or animal origin increased by +18.5% against 2015 indices. The most prominent rate of growth was recorded in 2010 when imports increased by 25% year-to-year. Imports peaked in 2018 and are likely to see steady growth in the near future.

Imports by Country

The Netherlands (1.3K tonnes), China (678 tonnes) and Italy (548 tonnes) were the main suppliers of imports of colouring matter of vegetable or animal origin to Germany, together comprising 46% of total imports. These countries were followed by the U.S., India, Peru, Ecuador, Denmark, Spain, Belgium, the UK and France, which together accounted for a further 44%.

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

In value terms, the largest vegetable or animal colouring matter suppliers to Germany were China ($20M), the Netherlands ($19M) and Peru ($8.5M), together accounting for 44% of total imports.

In terms of the main suppliers, China 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

In 2018, the average import price for colouring matter of vegetable or animal origin amounted to $19,424 per tonne, reducing by -5.2% against the previous year. Over the period from 2008 to 2018, it increased at an average annual rate of +2.5%. The pace of growth was the most pronounced in 2011 when the average import price increased by 35% year-to-year. Over the period under review, the average import prices for colouring matter of vegetable or animal origin reached their peak figure at $25,499 per tonne in 2012; however, from 2013 to 2018, import prices remained at a lower figure.

Prices varied noticeably by the country of origin; the country with the highest price was France ($30,870 per tonne), while the price for Ecuador ($4,082 per tonne) was amongst the lowest.

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

Source: IndexBox AI Platform

Footwear Treatments Market in the EU Recovers Robustly

IndexBox has just published a new report: ‘EU – Polishes And Creams For Footwear Or Leather – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

The revenue of the footwear treatments market in the European Union amounted to $126M in 2018, picking up by 4.9% 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 last two years, it grew tangibly, recovering from a consistent deduction observed from 2014-2016. The level of footwear treatments consumption peaked at $193M in 2013; however, from 2014 to 2018, consumption yet failed to regain its momentum.

Consumption By Country in the EU

The countries with the highest volumes of footwear treatments consumption in 2018 were Italy (5K tonnes), Spain (3.6K tonnes) and Germany (3.2K tonnes), together comprising 45% of total consumption. France, Poland, the UK, the Netherlands, Romania, Belgium, Austria, Bulgaria and Hungary lagged somewhat behind, together comprising a further 42%.

From 2007 to 2018, the most notable rate of growth in terms of footwear treatments consumption, amongst the main consuming countries, was attained by France, while the other leaders experienced more modest paces of growth.

The countries with the highest levels of footwear treatments per capita consumption in 2018 were Italy (84 kg per 1000 persons), Bulgaria (82 kg per 1000 persons) and Spain (78 kg per 1000 persons).

From 2007 to 2018, the most notable rate of growth in terms of footwear treatments per capita consumption, amongst the main consuming countries, was attained by France, while the other leaders experienced more modest paces of growth.

Production in the EU

In 2018, the production of polishes and creams for footwear or leather in the European Union totaled 32K tonnes, increasing by 4.4% against the previous year. In general, footwear treatments production, however, continues to indicate a relatively flat trend pattern. In value terms, footwear treatments production totaled $129M in 2018 estimated in export prices.

Production By Country in the EU

The countries with the highest volumes of footwear treatments production in 2018 were Italy (6.7K tonnes), Spain (5.7K tonnes) and Germany (4.3K tonnes), with a combined 53% share of total production. These countries were followed by Poland, France, Austria and the Netherlands, which together accounted for a further 32%.

From 2007 to 2018, the most notable rate of growth in terms of footwear treatments production, amongst the main producing countries, was attained by Austria, while the other leaders experienced more modest paces of growth.

Exports in the EU

In 2018, approx. 27K tonnes of polishes and creams for footwear or leather were exported in the European Union; approximately reflecting the previous year. In general, footwear treatments exports continue to indicate a mild descent. The pace of growth appeared the most rapid in 2010 when exports increased by 13% against the previous year. Over the period under review, footwear treatments exports reached their peak figure at 30K tonnes in 2007; however, from 2008 to 2018, exports remained at a lower figure. In value terms, footwear treatments exports amounted to $204M (IndexBox estimates) in 2018.

Exports by Country

In 2018, Germany (6.1K tonnes), distantly followed by Poland (3,497 tonnes), Spain (2,947 tonnes), Italy (2,583 tonnes), the Netherlands (2,562 tonnes), the UK (1,924 tonnes), France (1,639 tonnes) and Austria (1,460 tonnes) were the largest exporters of polishes and creams for footwear or leather, together mixing up 85% of total exports.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by the Netherlands, while the other leaders experienced more modest paces of growth.

Imports in the EU

The imports amounted to 21K tonnes in 2018, approximately reflecting the previous year. In general, footwear treatments imports, however, continue to indicate a measured curtailment. The pace of growth was the most pronounced in 2010 when imports increased by 12% y-o-y. Over the period under review, footwear treatments imports attained their maximum at 26K tonnes in 2007; however, from 2008 to 2018, imports failed to regain their momentum. In value terms, footwear treatments imports totaled $137M (IndexBox estimates) in 2018.

Imports by Country

In 2018, Germany (5K tonnes), distantly followed by Poland (2,206 tonnes), the UK (2,131 tonnes), the Netherlands (2,092 tonnes) and France (1,779 tonnes) represented the major importers of polishes and creams for footwear or leather, together achieving 62% of total imports. Belgium (934 tonnes), Italy (892 tonnes), Spain (843 tonnes), Romania (696 tonnes), Denmark (652 tonnes), Portugal (542 tonnes) and Sweden (459 tonnes) followed a long way behind the leaders.

From 2007 to 2018, average annual rates of growth with regard to footwear treatments imports into Germany stood at +1.7%. At the same time, the Netherlands (+6.2%) displayed positive paces of growth. Moreover, the Netherlands emerged as the fastest-growing importer in the European Union, with a CAGR of +6.2% from 2007-2018. Denmark, Portugal, Belgium and Italy experienced a relatively flat trend pattern. By contrast, Sweden (-1.5%), France (-2.5%), the UK (-2.7%), Spain (-3.0%), Poland (-3.3%) and Romania (-6.3%) illustrated a downward trend over the same period. From 2007 to 2018, the share of the Netherlands and Germany increased by +4.8% and +3.9% percentage points, while Spain (-1.6 p.p.), France (-2.7 p.p.), Romania (-3.5 p.p.), the UK (-3.5 p.p.) and Poland (-4.7 p.p.) saw their share reduced. The shares of the other countries remained relatively stable throughout the analyzed period.

Source: IndexBox AI Platform

herring

The Growth of Canned Herring Market in the EU Loses Momentum

IndexBox has just published a new report: ‘EU – Herrings (Prepared Or Preserved) – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

The revenue of the herring market in the European Union amounted to $1.5B in 2018, remaining relatively stable 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). From 2016-2017, the market grew rapidly, recovering from a noticeable slump observed in 2015. In 2018, however, the market growth lost its momentum, and the market volume stays within its relatively flat long-term trend pattern.

Consumption By Country in the EU

The countries with the highest volumes of canned herring consumption in 2018 were Germany (81K tonnes), Poland (80K tonnes) and the UK (68K tonnes), with a combined 55% share of total consumption. These countries were followed by Italy, Spain, the Netherlands and Hungary, which together accounted for a further 31%.

From 2007 to 2018, the most notable rate of growth in terms of herring consumption, amongst the main consuming countries, was attained by the Netherlands, while the other leaders experienced more modest paces of growth.

In value terms, the largest herring markets in the European Union were Germany ($420M), Poland ($222M) and the UK ($212M), together accounting for 58% of the total market.

The countries with the highest levels of herring per capita consumption in 2018 were Poland (2,1 kg per person), Italy (1,1 kg per person) and Hungary (1,0 kg per person).

Production in the EU

In 2018, approx. 423K tonnes of herrings (prepared or preserved) were produced in the European Union; approximately equating the previous year. In general, herring production, however, continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2017 when production volume increased by 2.9% against the previous year. In value terms, herring production totaled $1.9B in 2018 estimated in export prices.

Production By Country in the EU

The countries with the highest volumes of herring production in 2018 were Poland (109K tonnes), Italy (66K tonnes) and the UK (65K tonnes), with a combined 57% share of total production. These countries were followed by Germany, Spain, Denmark and Lithuania, which together accounted for a further 32%.

From 2007 to 2018, the most notable rate of growth in terms of herring production, amongst the main producing countries, was attained by Lithuania, while the other leaders experienced more modest paces of growth.

Exports in the EU

In 2018, the exports of herrings (prepared or preserved) in the European Union totaled 121K tonnes, increasing by 6.9% against the previous year. Over the period under review, herring exports, however, continue to indicate a mild reduction. The pace of growth appeared the most rapid in 2011 with an increase of 13% year-to-year. In value terms, herring exports stood at $399M (IndexBox estimates) in 2018.

Exports by Country

Poland was the main exporter of herrings (prepared or preserved) in the European Union, with the volume of exports accounting for 52K tonnes, which was approx. 43% of total exports in 2018. Denmark (27K tonnes) ranks second in terms of the total exports with a 22% share, followed by Germany (20%) and Lithuania (5.2%). The following exporters – Sweden (4,143 tonnes) and the Netherlands (3,077 tonnes) – each accounted for a 6% share of total exports.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by Germany, while the other leaders experienced more modest paces of growth.

In value terms, Poland ($165M) remains the largest herring supplier in the European Union, comprising 41% of total herring exports. The second position in the ranking was occupied by Denmark ($82M), with a 21% share of total exports. It was followed by Germany, with a 19% share.

Export Prices by Country

The herring export price in the European Union stood at $3,295 per tonne in 2018, reducing by -1.5% against the previous year. Over the period from 2007 to 2018, it increased at an average annual rate of +1.5%.

Prices varied noticeably by the country of origin; the country with the highest price was the Netherlands ($6,046 per tonne), while Denmark ($3,072 per tonne) was amongst the lowest.

From 2007 to 2018, 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.

Imports in the EU

The imports stood at 115K tonnes in 2018, increasing by 3.9% against the previous year. Overall, herring imports, however, continue to indicate a slight contraction. The growth pace was the most rapid in 2008 with an increase of 4.1% against the previous year. In that year, herring imports reached their peak of 137K tonnes. From 2009 to 2018, the growth of herring imports remained at a somewhat lower figure. In value terms, herring imports totaled $327M (IndexBox estimates) in 2018.

Imports by Country

Germany was the key importer of herrings (prepared or preserved) in the European Union, with the volume of imports finishing at 45K tonnes, which was approx. 39% of total imports in 2018. Poland (23K tonnes) occupied the second position in the ranking, distantly followed by the Netherlands (7,378 tonnes), Sweden (5,846 tonnes) and Denmark (5,698 tonnes). All these countries together occupied approx. 36% share of total imports. The UK (3,262 tonnes), Finland (3,251 tonnes), Austria (3,246 tonnes), Romania (2,774 tonnes), the Czech Republic (2,359 tonnes), France (2,216 tonnes) and Estonia (2,026 tonnes) took a relatively small share of total imports.

Imports into Germany decreased at an average annual rate of -2.3% from 2007 to 2018. At the same time, the Netherlands (+13.8%), Romania (+12.9%) and the UK (+3.2%) displayed positive paces of growth. Moreover, the Netherlands emerged as the fastest-growing importer in the European Union, with a CAGR of +13.8% from 2007-2018. Poland and France experienced a relatively flat trend pattern. By contrast, the Czech Republic (-2.1%), Denmark (-2.3%), Austria (-2.6%), Estonia (-4.8%), Sweden (-5.0%) and Finland (-5.4%) illustrated a downward trend over the same period. From 2007 to 2018, the share of the Netherlands, Romania and Poland increased by +4.9%, +1.8% and +1.6% percentage points, while Finland (-2.4 p.p.), Sweden (-3.8 p.p.) and Germany (-11.3 p.p.) saw their share reduced. The shares of the other countries remained relatively stable throughout the analyzed period.

Import Prices by Country

The herring import price in the European Union stood at $2,840 per tonne in 2018, waning by -4.4% against the previous year. In general, the herring import price, however, continues to indicate a relatively flat trend pattern.

Prices varied noticeably by the country of destination; the country with the highest price was Austria ($4,240 per tonne), while Sweden ($1,781 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Finland, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

equine leather

Italy’s Exports of Bovine Leather into China Continues to Decline

IndexBox has just published a new report: ‘Italy – Leather Of Bovine And Equine Animals – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

The revenue of the bovine and equine leather market in Italy amounted to $1.8B in 2018, therefore, remained relatively stable 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). In general, bovine and equine leather consumption continues to indicate a mild descent. The most prominent rate of growth was recorded in 2013 with an increase of 43% against the previous year. Bovine and equine leather consumption peaked at $2.4B in 2014; however, from 2015 to 2018, consumption stood at a somewhat lower figure.

Production in Italy

In 2018, the amount of leather of bovine and equine animals produced in Italy totaled 428K tonnes, falling by -7.4% against the previous year. Over the period under review, bovine and equine leather production continues to indicate a mild contraction. The most prominent rate of growth was recorded in 2013 with an increase of 21% against the previous year. Bovine and equine leather production peaked at 522K tonnes in 2007; however, from 2008 to 2018, production stood at a somewhat lower figure.

In value terms, bovine and equine leather production amounted to $1.7B in 2018 estimated in export prices. Over the period under review, bovine and equine leather production continues to indicate a slight deduction. The growth pace was the most rapid in 2013 when production volume increased by 44% year-to-year. Bovine and equine leather production peaked at $1.9B in 2007; however, from 2008 to 2018, production stood at a somewhat lower figure.

Exports from Italy

In 2018, the amount of leather of bovine and equine animals exported from Italy amounted to 283K tonnes, waning by -2.7% against the previous year. Overall, bovine and equine leather exports continue to indicate a significant deduction. The most prominent rate of growth was recorded in 2010 when exports increased by 13% year-to-year. Exports peaked at 410K tonnes in 2007; however, from 2008 to 2018, exports remained at a lower figure.

In value terms, bovine and equine leather exports stood at $3.5B (IndexBox estimates) in 2018. In general, bovine and equine leather exports continue to indicate a mild decline. The most prominent rate of growth was recorded in 2010 with an increase of 19% year-to-year. Exports peaked at $4.2B in 2014; however, from 2015 to 2018, exports stood at a somewhat lower figure.

Exports by Country

China (92K tonnes) was the main destination for bovine and equine leather exports from Italy, accounting for a 32% share of total exports. Moreover, bovine and equine leather exports to China exceeded the volume sent to the second major destination, Viet Nam (36K tonnes), threefold. Spain (18K tonnes) ranked third in terms of total exports with a 6.2% share.

From 2007 to 2018, the average annual rate of growth in terms of volume to China amounted to -1.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: Viet Nam (+15.7% per year) and Spain (-3.0% per year).

In value terms, the largest markets for bovine and equine leather exported from Italy were Romania ($284M), China, Hong Kong SAR ($265M) and the U.S. ($247M), with a combined 23% share of total exports. These countries were followed by Viet Nam, China, Spain, Poland, France, Germany, Portugal, India and Austria, which together accounted for a further 41%.

In terms of the main countries of destination, Viet Nam experienced the highest growth rate of exports, over the last eleven years, while the other leaders experienced more modest paces of growth.

Export Prices by Country

The average bovine and equine leather export price stood at $12,383 per tonne in 2018, growing by 5% against the previous year. Over the period from 2007 to 2018, it increased at an average annual rate of +1.9%. The most prominent rate of growth was recorded in 2012 an increase of 21% year-to-year. The export price peaked at $14,278 per tonne in 2014; however, from 2015 to 2018, export prices remained at a lower figure.

Prices varied noticeably by the country of destination; the country with the highest price was the U.S. ($33,326 per tonne), while the average price for exports to China ($2,238 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was recorded for supplies to Romania, while the prices for the other major destinations experienced more modest paces of growth.

Imports into Italy

In 2018, approx. 318K tonnes of leather of bovine and equine animals were imported into Italy; remaining constant against the previous year. Over the period under review, bovine and equine leather imports continue to indicate a temperate decrease. The pace of growth was the most pronounced in 2010 when imports increased by 19% y-o-y. Over the period under review, bovine and equine leather imports attained their maximum at 441K tonnes in 2007; however, from 2008 to 2018, imports remained at a lower figure.

In value terms, bovine and equine leather imports amounted to $1.7B (IndexBox estimates) in 2018. Over the period under review, bovine and equine leather imports continue to indicate a moderate reduction. The most prominent rate of growth was recorded in 2010 with an increase of 50% y-o-y. Imports peaked at $2.4B in 2014; however, from 2015 to 2018, imports remained at a lower figure.

Imports by Country

In 2018, Brazil (90K tonnes) constituted the largest bovine and equine leather supplier to Italy, with a 28% share of total imports. Moreover, bovine and equine leather imports from Brazil exceeded the figures recorded by the second-largest supplier, the U.S. (38K tonnes), twofold. Paraguay (20K tonnes) ranked third in terms of total imports with a 6.2% share.

From 2007 to 2018, the average annual rate of growth in terms of volume from Brazil stood at -1.6%. The remaining supplying countries recorded the following average annual rates of imports growth: the U.S. (+0.4% per year) and Paraguay (+15.7% per year).

In value terms, Brazil ($319M), the U.S. ($209M) and Russia ($130M) constituted the largest bovine and equine leather suppliers to Italy, with a combined 40% share of total imports. These countries were followed by New Zealand, the UK, Paraguay, Ukraine, South Africa, Australia, Kenya, Bolivia and Venezuela, which together accounted for a further 18%.

Paraguay experienced the highest growth rate of imports, among the main suppliers over the last eleven years, while the other leaders experienced more modest paces of growth.

Import Prices by Country

The average bovine and equine leather import price stood at $5,216 per tonne in 2018, declining by -1.8% against the previous year. In general, the bovine and equine leather import price, however, continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2010 an increase of 27% against the previous year. The import price peaked at $5,755 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 supplying countries. In 2018, the country with the highest price was Russia ($10,205 per tonne), while the price for Venezuela ($1,538 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Russia, while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox AI Platform

potatoes

UK’s Dependence on Imports of Frozen Potatoes Increases Markedly

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

EU Mixed Fruit and Vegetable Juice Market – France Is the Largest and Fastest-Growing Consumer

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

The revenue of the mixed juices market in the European Union amounted to $3B in 2018, flattening at 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). In general, mixed juices consumption continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2011 with an increase of 11% against the previous year. The level of mixed juices consumption peaked at $3.2B in 2008; however, from 2009 to 2018, consumption stood at a somewhat lower figure.

Consumption By Country in the EU

The countries with the highest volumes of mixed juices consumption in 2018 were Germany (539K tonnes), France (496K tonnes) and the UK (413K tonnes), together comprising 63% of total consumption.

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

In value terms, France ($670M), the UK ($648M) and Germany ($578M) were the countries with the highest levels of market value in 2018, with a combined 64% share of the total market.

The countries with the highest levels of mixed juices per capita consumption in 2018 were France (7,591 kg per 1000 persons), Germany (6,555 kg per 1000 persons) and the UK (6,188 kg per 1000 persons).

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

Production in the EU

In 2018, the amount of mixtures of fruit and vegetable juices produced in the European Union amounted to 2.2M tonnes, reducing by -7.6% against the previous year. In general, mixed juices production continues to indicate a mild deduction. The growth pace was the most rapid in 2016 when production volume increased by 6% y-o-y. Over the period under review, mixed juices production reached its peak figure volume at 2.5M tonnes in 2008; however, from 2009 to 2018, production stood at a somewhat lower figure.

In value terms, mixed juices production totaled $2.5B in 2018 estimated in export prices. In general, mixed juices production continues to indicate a temperate downturn. The pace of growth was the most pronounced in 2011 with an increase of 14% against the previous year. Over the period under review, mixed juices production attained its peak figure level at $3.1B in 2008; however, from 2009 to 2018, production failed to regain its momentum.

Production By Country in the EU

The countries with the highest volumes of mixed juices production in 2018 were Germany (631K tonnes), the Netherlands (349K tonnes) and France (245K tonnes), together accounting for 55% of total production.

From 2008 to 2018, the most notable rate of growth in terms of mixed juices production, amongst the main producing countries, was attained by France, while the other leaders experienced more modest paces of growth.

Exports in the EU

In 2018, the mixed juices exports in the European Union stood at 960K tonnes, picking up by 7.6% against the previous year. The total exports indicated a strong increase from 2008 to 2018: its volume increased at an average annual rate of +4.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, mixed juices exports increased by +72.2% against 2015 indices. The most prominent rate of growth was recorded in 2017 with an increase of 33% against the previous year. Over the period under review, mixed juices exports reached their peak figure in 2018 and are likely to continue its growth in the near future.

In value terms, mixed juices exports stood at $1.2B (IndexBox estimates) in 2018. The total exports indicated conspicuous growth from 2008 to 2018: its value increased at an average annual rate of +4.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, mixed juices exports increased by +86.4% against 2015 indices. The most prominent rate of growth was recorded in 2017 with an increase of 30% against the previous year. The level of exports peaked in 2018 and are expected to retain its growth in the near future.

Exports by Country

The Netherlands (334K tonnes) and Germany (243K tonnes) represented the main exporters of mixtures of fruit and vegetable juices in 2018, amounting to approx. 35% and 25% of total exports, respectively. It was distantly followed by Spain (110K tonnes), Belgium (67K tonnes) and the UK (58K tonnes), together making up a 24% share of total exports. France (38K tonnes) and Poland (24K tonnes) followed a long way behind the leaders.

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

In value terms, the Netherlands ($420M), Germany ($262M) and Spain ($136M) were the countries with the highest levels of exports in 2018, together accounting for 69% of total exports. These countries were followed by the UK, Belgium, France and Poland, which together accounted for a further 21%.

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

Export Prices by Country

The mixed juices export price in the European Union stood at $1,233 per tonne in 2018, surging by 12% against the previous year. Overall, the mixed juices export price, however, continues to indicate a mild descent. The most prominent rate of growth was recorded in 2011 when the export price increased by 14% y-o-y. Over the period under review, the export prices for mixtures of fruit and vegetable juices reached their maximum at $1,436 per tonne in 2008; however, from 2009 to 2018, export prices remained at a lower figure.

Average prices varied somewhat amongst the major exporting countries. In 2018, major exporting countries recorded the following prices: in the UK ($1,568 per tonne) and France ($1,284 per tonne), while Germany ($1,076 per tonne) and Poland ($1,103 per tonne) were amongst the lowest.

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

Imports in the EU

In 2018, the amount of mixtures of fruit and vegetable juices imported in the European Union stood at 1.1M tonnes, surging by 9.8% against the previous year. The total imports indicated a resilient increase from 2008 to 2018: its volume increased at an average annual rate of +6.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, mixed juices imports increased by +86.8% against 2012 indices. The most prominent rate of growth was recorded in 2017 with an increase of 46% 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, mixed juices imports totaled $1.1B (IndexBox estimates) in 2018. The total imports indicated a strong expansion from 2008 to 2018: its value increased at an average annual rate of +6.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, mixed juices imports increased by +60.7% against 2015 indices. The most prominent rate of growth was recorded in 2017 with an increase of 44% year-to-year. The level of imports peaked in 2018 and are likely to continue its growth in the near future.

Imports by Country

The UK (292K tonnes) and France (289K tonnes) represented roughly 55% of total imports of mixtures of fruit and vegetable juices in 2018. Germany (151K tonnes) ranks next in terms of the total imports with a 14% share, followed by the Netherlands (5.5%) and Belgium (4.9%). Sweden (30K tonnes), Austria (24K tonnes), Denmark (21K tonnes), Portugal (19K tonnes), Spain (17K tonnes) and Poland (16K 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 the UK, while the other leaders experienced more modest paces of growth.

In value terms, the largest mixed juices importing markets in the European Union were France ($277M), the UK ($252M) and Germany ($202M), with a combined 65% share of total imports.

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

Import Prices by Country

In 2018, the mixed juices import price in the European Union amounted to $1,071 per tonne, remaining stable against the previous year. In general, the mixed juices import price, however, continues to indicate a moderate reduction. The most prominent rate of growth was recorded in 2011 when the import price increased by 9.3% year-to-year. The level of import price peaked at $1,365 per tonne in 2008; however, from 2009 to 2018, import prices failed to regain their momentum.

There were significant differences in the average prices amongst the major importing countries. In 2018, the country with the highest price was Poland ($1,575 per tonne), while Portugal ($715 per tonne) was amongst the lowest.

From 2008 to 2018, the most notable rate of growth in terms of prices was attained by Denmark, while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox AI Platform

solutions

How Customized Shipping Solutions Benefit Your Supply Chain

Gone are the days when the one-size-fits-all approach to logistics is good enough to meet the exacting standards of every shipment. In fact, maybe those days were never really here.

Though they may seem like a good bargain, many of the out-of-the-box logistics services of today lack the flexibility to accommodate specialized loads like artwork, delicate medical equipment, and other sensitive or rush items. Seemingly innocuous errors with such shipments can cost thousands of dollars, or possibly more. 

SPECIALISTS IN FREIGHT FORWARD THINKING 

Today’s shippers and shipments demand more from their 3PL provider, but unfortunately, some providers still cannot rise to the challenge. Thankfully, there’s a solution for supply chains looking for individualized services. Nimble, more personalized 3PL’s operate with the specific goal of handling sensitive cargo. The Magnate Worldwide family of companies – comprised of TrumpCard and Masterpiece International – serves supply chains with a variety of customizable solutions for businesses big and small. They offer a boutique approach to logistics not possible with larger, more generic providers. 

Founded in 1995, TrumpCard specializes in domestic air and ground expedited shipments that are handling-sensitive and time-definite in nature – from medical equipment to aerospace parts to entertainment industry equipment. “We focus on domestic shipments routed by air and ground that have special handling requirements or rapid deadlines,” said Chris Zingrebe, President of TrumpCard, “The industries we serve typically have sensitive cargo that may require elevated service levels, such as White Glove or next day delivery.” TrumpCard offers a premier white-glove service for special deliveries into sensitive environments like hospitals or data centers. The company’s expertise in this type of mission-critical shipment has made them masters of proactive communication and efficiency when it comes to handling sensitive shipments and time-definite services. 

Founded in 1989, Masterpiece International specializes in logistics, freight forwarding, and customs brokerage of fine art for museums, galleries, and art fairs as well as offering services to private clients, and the entertainment and events industry. “Masterpiece has a rich history in providing premier logistics services to the fine art industry,” said Thomas Gilgen, President of Masterpiece, “…we’ve taken that and expanded across many other industries with specialized requirements.” Over the years, Masterpiece has developed an International Logistics Solutions Division which focuses on shipments for technology, life sciences, energy, marine, aerospace, retail, trade show, and household goods industries. Due to the highly specialized nature of their shipments, Masterpiece International has developed expertise in handling sensitive shipments and provides that high level of service across all cargo, whether they’re shipping priceless works of art, mission-critical aerospace equipment, concert, and event cargo, or temperature-controlled life sciences materials.

MINIMIZING RISK, MAKING DEADLINES, AND ADDING VALUE 

No matter what the cargo is, shippers are inherently taking a risk when transporting goods. Unfortunately, that risk only increases as the value of the cargo increases. Not only are you risking merchandise becoming lost or damaged, even the risk of delay can throw off an entire supply chain. The key to eliminating risk and guaranteeing a successful delivery is working with a 3PL partner that you trust to get your shipment where it needs to go, when it needs to be there. But nobody has a crystal ball, so how do you know you can trust your 3PL? It pays to do your homework. 

In logistics, time is money, especially when one delay can cost thousands of dollars and set off a domino effect of even more problems. That’s why it pays to select a provider that has the expertise to get your shipment where it needs to go on time, every time. When selecting a 3PL, a provider’s on-time rate is an excellent indicator of what you can expect for your own merchandise deliveries. TrumpCard, for example, boasts an impressive 99% on-time rate, in addition to a 24/7 team managing shipments. TrumpCard’s state-of-the-art tracking software ensures that all shipments are accounted for at all times, so there is no room for delay or loss, and you can always keep tabs on your merchandise no matter where it is in the supply chain. 

One optional service a business may want to consider is additional security measures for the supply chain. Though not necessary for all shipments, when shipping valuable or sensitive material, additional security services can offer peace of mind by minimizing security risks and blind spots. At Masterpiece International, teams specialize in minimizing risks when planning, routing and executing and have access to an in-house security and supervision team for protection of high-value goods. That team, the Masterpiece Security Group, is a licensed security organization with tarmac access at many major U.S. airports, their own dedicated vehicles, and a partner network of highly vetted agents and carriers. 

Ultimately, when it comes to selecting a logistics provider, added values like built-in security and customizable solutions only matter if your 3PL has the visibility and customer service skills to back them up. Both TrumpCard and Masterpiece believe that visibility and customer service are key from the moment they take possession of your merchandise to its final delivery at the end-user. Both companies offer online track and trace, shipment imaging, and supervision all designed to keep tabs on your merchandise and give you peace of mind. At Magnate, customer service is more than just a pleasantry, it means that experienced agents are problem solving, customizing solutions, and providing timely and important information to the client with a personalized touch that suits the individual needs of your business. 

In the end, a combination of many factors create value, not just a big name or a low price. Customizable solutions with additional features like an excellent on-time rate, added security, transparency, and expertise in sensitive and high-value shipments are all part of what adds value to a specialized supply chain. TrumpCard and Masterpiece International have been trusted to handle sensitive, mission-critical, and high-value shipments for over 50 years of combined service – continuously getting the job done right for your business. 

community

3 Ways To Build A Community That Leads To Business Success

In the business world, making new connections and interacting with people — commonly known as networking — is essential in achieving and sustaining success.
But Ngan Nguyen (www.nganhnguyen.com), an intelligent leadership coach and author of Self-Defined Success: You Have Everything It Takes, says taking the next step beyond networking is where some people stumble. She calls that next step “community-building” and it can only happen with consistent relationship-building.
“Networking means little if strong relationships aren’t built for the long haul, sustained, and other connections don’t spawn from those relationships,” Nguyen says. “Being open and available for when opportunities come is what positions us to move forward. But you really can’t do so if you haven’t done enough relationship-building in order to build the community you need around you.
“Weaving a wide net of connection is the essence of community-building, which provides a solid foundation of true support to help you keep moving forward in business. It’s taught to a degree in networking, but building a community requires much more than honing that perfectly scripted pitch, going to countless networking events, talking to as many people as you can and handing out your card. What is required is the ability to build, foster, and hold relationships.”
Nguyen offers these ways to build relationships and a community of support around you:
Believe in the value of you. “Inwardly and outwardly, be clear about who you are and what you offer as a person,” Nguyen says. “Fully believe in the value of you, before your product. When you embody the confidence of your message, clients will clearly see your value and be more likely to buy.”
Seek to give, not to pitch. “Giving to others genuinely creates goodwill, and as you show you care for others, you build a rapport and they naturally are drawn to you,” Nguyen says. “Scrap the elevator pitch. Be real and someone people want to know. People will refer people they like, people who had an impact on them with their kindness. It’s much more effective than the salesperson at a networking event circling the room and handing out cards.”
Be in the right place, right time. Nguyen says one needs to trust their intuition to find the right networking places where long-term relationships can spawn. “You hone your intuition so it guides you to the right place, where you can be in the perfect opportunity that will skyrocket your success,” Nguyen says. “People do business with people they know, like, and trust. To find an environment that fosters this, seek out events that are more likely to attract a culture of giving and fun so it is more likely to build friendships. Then, business can happen naturally and organically.”
“The miracles and best things in our lives are often influenced by other people,” Nguyen says. “To build influence and a community of people who support you and constantly send you referrals requires relationships that keep growing, and much of that depends on what you put into it and how sincere you are.”
__________________________________________________________________
Ngan Nguyen (www.nganhnguyen.com) is the author of Self-Defined Success: You Have Everything It Takes, and the founder/CEO of Cintamani Group, an executive coaching and consulting firm. Nguyen coaches on leadership and empowers entrepreneurs as an intuitive strategist. She is partnering with Secret Knock and WeWork to bring a major networking event to Boston on Dec. 11 for entrepreneurs and business leaders.
With over a decade of business strategy experience as an advisor to Fortune 100 companies, Nguyen is also a certified master-level intelligent leadership executive coach with John Mattone and was an analyst for McKinsey & Company. Nguyen graduated with a double honors degree in biochemistry-biophysics and bioengineering from Oregon State University and completed a research fellowship at MIT in nanotechnology.
pesticide

Pesticide Imports into the U.S. Expand Rapidly Against Large But Stagnating Domestic Output

IndexBox has just published a new report: ‘U.S. Pesticide And Other Agricultural Chemicals Market. Analysis And Forecast to 2025’. Here is a summary of the report’s key findings.

The revenue of the pesticide and agricultural chemical market in the U.S. amounted to $14B in 2018, waning by -3% 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). Overall, pesticide and agricultural chemical consumption continues to indicate a moderate reduction. The most prominent rate of growth was recorded in 2016 when the market value increased by 5.6% y-o-y. Pesticide and agricultural chemical consumption peaked at $16.2B in 2013; however, from 2014 to 2018, consumption stood at a somewhat lower figure.

The Market For Pesticides And Other Agricultural Chemicals in the U.S. Is Buoyed By Domestic Products

In value terms, pesticide and agricultural chemical production stood at $14B in 2018. The U.S. market is largely supplied by domestic products, therefore the trend patterns of the consumption volumes and production volumes generally reflect each other.

Exports from the U.S.

In 2018, the exports of pesticides and other agricultural chemicals from the U.S. stood at 63K tonnes, jumping by 6.4% against the previous year. Over the period under review, pesticide and agricultural chemical exports, however, continue to indicate a deep downturn. The most prominent rate of growth was recorded in 2014 when exports increased by 17% year-to-year. In that year, pesticide and agricultural chemical exports attained their peak of 102K tonnes. From 2015 to 2018, the growth of pesticide and agricultural chemical exports remained at a somewhat lower figure.

In value terms, pesticide and agricultural chemical exports totaled $1.4B (IndexBox estimates) in 2018. The growth pace was the most rapid in 2018 when exports increased by 36% against the previous year. In that year, pesticide and agricultural chemical exports reached their peak and are likely to continue its growth in the immediate term.

Exports by Country

Brazil (11K tonnes), Canada (9.1K tonnes) and Mexico (6.6K tonnes) were the main destinations of pesticide and agricultural chemical exports from the U.S., with a combined 41% share of total exports. The UK, South Africa, Costa Rica, India, France, Belgium, Colombia, Peru and China lagged somewhat behind, together accounting for a further 33%.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main countries of destination, was attained by the UK (+92.8% per year), while the other leaders experienced more modest paces of growth.

In value terms, Brazil ($393M), Canada ($204M) and Mexico ($149M) were the largest markets for pesticide and agricultural chemical exported from the U.S. worldwide, together accounting for 52% of total exports. These countries were followed by the UK, France, China, India, Colombia, South Africa, Costa Rica, Belgium and Peru, which together accounted for a further 22%.

India recorded the highest growth rate of exports, among the main countries of destination over the last eleven-year period, while the other leaders experienced more modest paces of growth.

Imports into the U.S.

Pesticide and agricultural chemical imports into the U.S. totaled 62K tonnes in 2018, jumping by 15% against the previous year. Overall, the total imports indicated buoyant growth from 2013 to 2018: its volume increased at an average annual rate of +11.2% over the last five years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, pesticide and agricultural chemical imports increased by +88.6% against 2014 indices. The most prominent rate of growth was recorded in 2017 when imports increased by 22% y-o-y. Imports peaked in 2018 and are likely to see steady growth in the immediate term.

In value terms, pesticide and agricultural chemical imports totaled $433M (IndexBox estimates) in 2018. Overall, pesticide and agricultural chemical imports continue to indicate a resilient expansion. The pace of growth was the most pronounced in 2017 with an increase of 81% year-to-year. Over the period under review, pesticide and agricultural chemical imports attained their maximum in 2018 and are likely to continue its growth in the near future.

The share of imports in terms of total consumption increased rapidly over the last two years and reached 6% in 2018. The largest increase refers to supplies from China and Mexico. Despite the tangible growth those figures, however, are still insignificant against the volume of domestic production.

Imports by Country

China (18K tonnes), Mexico (13K tonnes) and France (6.9K tonnes) were the main suppliers of pesticide and agricultural chemical imports to the U.S., together comprising 61% of total imports. These countries were followed by India, Israel, Germany, Italy, Chile and Belgium, which together accounted for a further 29%.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main suppliers, was attained by Israel (+86.9% per year), while the other leaders experienced more modest paces of growth.

In value terms, China ($140M) constituted the largest supplier of pesticide and agricultural chemical to the U.S., comprising 32% of total pesticide and agricultural chemical imports. The second position in the ranking was occupied by Mexico ($55M), with a 13% share of total imports. It was followed by France, with a 9% share.

From 2007 to 2018, the average annual growth rate of value from China amounted to +38.3%. The remaining supplying countries recorded the following average annual rates of imports growth: Mexico (+29.3% per year) and France (+10.9% per year).

Source: IndexBox AI Platform