10% growth in 2017
Agricultural exports to Russia by 1 billion euros
Dutch agricultural exports to Russia rose by 2017% in 10, accounting for more than €1 billion in export value. After 4 years, the export sector has recovered from the blow that was dealt when Russia imposed sanctions in 2014.
After the United States (US) and China, Russia has become the third largest agricultural export market outside the European Union (EU). That is what the Ministry of Agriculture, Nature and Food Quality (LNV) known based on figures from LEI and WUR. In 2017, the Dutch agricultural sector grew by 10%, bringing the value above €1 billion.
Strong example
Despite the fact that (from an agricultural point of view) Russia would like to stand on its own two feet, Dutch agricultural exports still manage to expand its position. A strong example, given the fact that the government strongly supports and stimulates local agriculture. Exports of starting material and floriculture show the largest increases.
In 2013, the Netherlands exported €1,8 billion worth of agricultural products to Russia. That amount includes the knowledge and technology that is deployed in the country. In August 2014, Russia imposed sanctions on the import of vegetables, fruit, dairy, meat and fish from Western countries. As a result, the export value halved to €940 million in 2015.
Dairy and meat
Dairy and pork exports, among others, have been hit hard. In 2013, the first product group was worth €250 million and the export of pork was €4 million 78 years ago. This has now fallen to an export value of almost €0.
The largest growers are the export of genetic animal and plant material (+25%), animal feed ingredients, machines and crop protection products. Live cattle exports have also been good. Exports of breeding heifers increased by 40% to a value of €44 million. Live poultry exports also increased by more than 25%.
Feed ingredients mainly consist of minerals and vitamins: premixes and prestarters. Of this, the export volume increased by 20% in 2017, worth €70 million. This also includes the transit of animal feed products from the port of Rotterdam. This re-export is also clearly noticeable in, for example, post-exotic fruit.
43
procent
Agricultural engineering
Another strong growth is the export of technology. In addition to agricultural machinery, this concerns storage and cooling facilities and technology for greenhouse horticulture. In 2017, this product group accounted for €192 million (+43%). The export of crop protection products increased by almost half. That of fertilizers by 12%. However, the cash volume is smaller than the other groups, at €5,5 and €1,2 million respectively.
More growth expected
The Russians also benefit from agro trade. They exported 2017% more products to the Netherlands in 4,5. The total export is therefore good for € 420 million. This mainly concerns animal feed raw materials (grains) and fish products.
The Ministry of LNV expects exports to increase in 2018. However, due to an increase in political tensions and a reduction in financial support, Russian investors may also be hesitant.
Niels van der Boom
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.