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Dutch food sector only grows outside the EU

21 January 2020 - Anne Jan Doorn - 1 reaction

The Dutch food sector can grow by meeting the demand for good quality food from Asia and Africa. Demand within the European Union is reaching its limits, ABN Amro says in a forecast. In short, the trend is: the further away, the higher the growth. 

Dutch companies active in the food processing industry, such as vegetable processors and slaughterhouses, achieved a turnover growth of 2019% in 0,7 as a whole. ABN Amro expects that growth to increase to 2020% in 3, partly due to price increases and increasing demand from abroad.

The growth in the past year was mainly due to the increase in foreign demand. Foreign sales increased by 3%, while domestic sales decreased by 1,9%. The trend of 'the further away, the higher the growth' is illustrated by China and Germany. The value of exports to China grew by 26%, while the value of exports to Germany increased by 5%.

More exports outside the EU
Of course, this also includes the increased pork export to China a role. But it is also a trend that meat exports outside the EU are growing faster than within the EU. Growth in vegetable exports does come from the countries around us. The value of vegetable exports to EU countries increased by 11% last year, while that for exports outside the EU was only 2%.

According to ABN Amro, there are many opportunities for entrepreneurs in the fruit and vegetable sector who export within Europe, especially if they focus on convenience products. Because the vegetable consumption of many Europeans is too low and governments are making great efforts to improve this.

Opportunities in convenience products
Despite this, people's diets are difficult to change. That is why there are opportunities for companies that make it easy for consumers. For example, products such as sliced ​​vegetables and fresh packages, which make it easy for the consumer, are very popular. The number of fresh packages sold even increased by 2019% in 40.

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Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.
Comments
1 reaction
hans 21 January 2020
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/financieel/artikel/10885468/nederlandse-foodsector-groent-enkel-buiten-de-eu]The Dutch food sector only grows outside the EU[/url]
Growth (especially in percentages) is always relative.

1% market loss in tons in the Netherlands can just mean 10% growth in tons in a market outside the EU to keep the turnover in tons the same.

But that same 1% loss in the Netherlands can mean that you miss out on 5% income, while that 10% growth outside the EU only gives you 1% more income.

So net equal turnover, but less earned.
That is, if you do not immediately pass on those less revenues to the producer and simply squeeze them further.
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