Agriculture earns 1 billion from British sales

With Brexit on the horizon, export earnings to the United Kingdom (UK) are increasing. In 2017, the agricultural and horticultural sector earned €1 billion from sales to the UK, according to figures from Statistics Netherlands. This makes agricultural export the fifth most lucrative pillar.

Trade with the UK netted the Netherlands €22,7 billion last year, which is equal to 3,1% of gross domestic product. This makes the UK the second most important trading partner after Germany. The export of goods (home-made) represents the largest share of export earnings. However, compared to 2016, a decrease of more than 2% is visible to €10,33 billion.

Re-export earnings increased slightly to €2,88 billion; this also applies to service exports (€9,46 billion). Trade with the UK also generated 2017 full-time jobs in 218.000.

Agricultural exports pick up
De agricultural export belongs to the 5 economic pillars that earn €1 billion (or more) from trade with the UK. Compared to 2015, earnings increased; in that year, trade with the British yielded €944 million. The increased earnings in 2017 do not correspond with the noises from the field. Exporters 'complain' about difficult(er) sales opportunities, because of, among other things, the devaluation of the British pound.

The export value of agricultural-related goods increased by almost €2017 million to €43 billion in 5,88. The export of fruit and vegetables is the largest group in this; the export value crossed the €2 billion mark for the first time. Meat exports also recovered somewhat, after a decline in 2016. Sales increased by €11 million to €1,37 billion. However, this is still below the level of the years between 2012 and 2015. When meat exports invariably exceeded €1,4 billion.

Dairy exports are increasing
What is also striking is that the butter export (milk fat) has almost doubled to €73,4 million. The export of dairy products (including eggs) was in any case on the rise and increased by more than €60 million to €441 million.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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