Agri-food trade sustains growth in spite of the Covid-19 crisis and Brexit
EU agri-food exports continued to perform strongly in China and the Middle East and North Africa. Picture: Getty Images
Despite the economic crisis sparked by Covid-19 and uncertainties related to Brexit, EU-27 agri-food trade continued to grow in the first six months of 2020.
Between January and June, the value of EU27 agri-food exports totalled €90.2 billion (a rise of almost 3% compared to the same period in 2019), while the value of imports increased to €62.7bn (a rise of nearly 2.5%). Therefore the EU had an agri-food trade surplus of €27.4bn during this period, an increase of 3% compared to the corresponding months of 2019.
The monthly values of EU-27 exports picked up in June after a fall in May, and monthly value of EU imports continued to further decrease, following a downward trend since March this year.
EU agri-food exports continued to perform strongly in China and the Middle East and North Africa (MENA) region. Exports to China grew by €2.23bn compared to the same period last year, driven largely by sales of pig meat (whose export value increased by €1.74bn during this period), as well as wheat, offal meat, and infant food.
In the MENA region, the value of EU agri-food exports grew most notably in Saudi Arabia (by €484m), Algeria (€385m), and Morocco (€313m). This growth was driven by strong demand for EU barley and wheat.
In relation to EU27 trade with the United Kingdom, the value of EU27 exports to the UK fell by €521m in the first half of 2020, with wine, poultry meat, fruit and vegetable preparations, and butter the main product categories affected. Significant falls were also recorded in EU export values to the USA (a drop of €440m, led by spirits and liqueurs, wine, and fruit juices), Hong Kong (down by €245m), and Singapore (a decline of €219m).
Brexit also had a major impact on the value of imports from the UK, which fell by €863m. The product categories most affected were spirits and liqueurs, pasta and pastry, and chocolate and confectionery. Reductions were also recorded in the value of EU agri-food imports from the USA (a drop of €304m, mainly due to a fall in the EU’s intake of US soya beans), Ukraine (down €328m), and India (down by €241m).
More positive trading developments were recorded in relation to imports from Indonesia, Canada, and Malaysia. The increase in import values from Indonesia (€574m) and Malaysia (€326m) were driven by palm oil, while high imports of rapeseeds and soya beans led to a growth of €535m in import values from Canada. There were further increases in the value of imports from Brazil (up by €496m, boosted by soya bean imports) and Turkey (a rise of €364m, driven by citrus fruits, as well as fruit and vegetable preparations).
In terms of product categories, the strongest growths in export values were recorded for wheat (€1.7bn) and pig meat (€1.59bn), as well as coarse grains (up by €427m) and pet food (up €316m). The export of alcoholic drinks from the EU suffered during the first half of 2020, with significant falls recorded in the export values of wine (down €1.08bn) and spirits and liqueurs (down €945m). Other product categories that struggled during this period were raw hides and skins (falling by €516m) and cotton (dropping €275m).
The import values of several products grew, including fresh and dried tropical fruit (up €768m), oilseeds other than soybeans (a growth of €489m, mainly rapeseed and sunflower seeds) and palm and palm kernel oil (€478m). Declines, however, were recorded in the import of coarse grains (€664 million), spirits and liqueurs (€295m) and oil-cakes (€262m).
