The European Union’s agri-food trade surplus has been on the rise, reaching €33.7 billion in the first half of 2024. This surplus indicates a strong position for the EU in the global market, showcasing the strength of its agricultural sector. Despite some fluctuations in export and import figures, the overall trend remains positive for the EU’s agri-food trade.
EU agri-food exports in June 2024 amounted to €18.9 billion, although this was a slight decrease from the previous month and lower compared to June 2023. However, cumulative exports for the first half of 2024 showed a modest increase of 1% compared to the same period in 2023. This steady performance reflects the resilience of the EU’s agricultural exports despite market challenges.
One of the standout increases in exports was seen in trade with the US, which saw a significant rise of €1 billion (+8%) in the first half of 2024. This boost in exports was primarily driven by higher prices of olive and olive oil products. Additionally, exports to Brazil also increased by €209 million (+18%) during the same period, indicating a positive growth trajectory in EU trade relationships with key partners.
However, not all export markets experienced growth, as exports to China declined by €689 million (-9%) in the first half of 2024 compared to the same period in 2023. This decline can be attributed to reduced exports of key products like pigmeat, dairy products, and cereal preparations to the Chinese market. Despite this setback, the EU remains competitive in other sectors, such as olives and olive oil, which saw a substantial increase of €1.4 billion (+58%) in exports due to higher prices.
In terms of export volumes, cereals witnessed an 8% increase, reaching 25.1 million tonnes in the first half of 2024. This increase, particularly in wheat exports, demonstrates the EU’s ability to maintain a strong position in global markets despite price fluctuations. Conversely, exports of wine and vegetable oils saw declines in both value and volume, reflecting changing market dynamics affecting these product categories.
On the import side, EU agri-food imports amounted to €13 billion in June 2024, marking a 12% decrease from the previous month. Despite this monthly fluctuation, cumulative imports for the first half of 2024 remained stable at €82.7 billion compared to the same period in 2023. Notably, imports from several countries, including Côte d’Ivoire, Nigeria, and Tunisia, saw significant increases, driven by factors such as cocoa prices and olive oil volumes and prices.
Conversely, imports from Australia experienced a substantial decline of €843 million (-46%) due to reduced rapeseed volumes, while imports from Brazil also decreased by €634 million (-7%). These shifts in import figures highlight the dynamic nature of global trade relationships and the need for resilience in the face of changing market conditions.
Imports of coffee, tea, cocoa, and spices saw a significant increase of €2.8 billion (+27%) during the first half of 2024, largely driven by high cocoa prices. On the other hand, imports of oilseeds and protein crops declined by €2.1 billion (-18%), reflecting changing consumption patterns and market dynamics affecting these product categories.
In conclusion, the EU’s agri-food trade landscape in the first half of 2024 showcased both challenges and opportunities for the sector. While some markets experienced declines in exports and imports, others saw significant growth, highlighting the importance of diversification and adaptability in global trade. Moving forward, continued monitoring of market trends and proactive engagement with trading partners will be crucial for the EU to maintain its competitive position in the agri-food sector.
If you found this article informative, why not stay updated with the latest trends and insights in the agricultural industry by subscribing to Cattle Weekly’s Newsletter? Stay ahead of the curve and be part of a thriving community passionate about agriculture!
Remember, the world of agri-food trade is dynamic and ever-changing. By staying informed and engaged, you can position yourself for success in this exciting industry. Share your thoughts or questions in the comments below and join the conversation on the future of agri-food trade in Australia.
