Agriculture and Potato Markets in Europe

The European Union represents one of the largest political and economic jurisdictions in the world with a total population of more than 500 million citizens. The gross domestic product (GDP) of the EU as a whole is of approximately US$19 trillion and is dominated by the service industry, which accounts for some 70% of the overall economy. Nevertheless, even though the agriculture industry only represents 1.6% of the aggregate EU economies, Europe remains a major producer and exporter of agricultural goods. In fact, agriculture accounts for approximately 5% of the labor force within the EU and its most productive crops include wheat, barley, oilseeds, and grapes. In terms of trade, the most important partners of the EU, for both export and import, are China and the United States.

Still recovering from the global financial crisis of the last several years, the EU economy is yet to achieve stable and sustained growth. Similarly, given all of the sociopolitical events of the past year, the Euro (€) has struggled in the international markets and is currently trading near one to one parity with the US dollar in the Foreign Exchange. This article explores the status of potato markets within the EU.

Agriculture and Potato Markets in Europe

China, India, and Russia are the largest potato producers in the world. However, there are other key suppliers within the international potato markets, such as the EU and the US. The Netherlands, Belgium, France, Germany, and Poland dominate EU potato exports. The estimated total production of these five countries for the year 2016 exceeds 24 million metric tons. Due to favorable weather conditions, potato yields in Poland increased during the past harvest season, while yields in the Netherlands, France, and Belgium decreased slightly. Nevertheless, the surface area of crop cultivation within the major producing countries increased by approximately 5% throughout the last year. During 2015/16, the largest potato producer within the EU will be Germany with some 7.4 million metric tons, followed by France with approximately 5.4 million. For the 2016/17 season, Germany is expected to produce 7.5 million metric tons, France around 5.2 million, Poland some 4.5 million, and Belgium around 3.7 million.

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In terms of international markets outside of the EU, the largest potato exporters are the Netherlands and Belgium. For the 2015/16 season, the Netherlands exported 575.000 metric tons of potatoes, while Belgium exported 505.000. The main export markets for EU potatoes include Saudi Arabia and Brazil, which together account for more than 25% of all potato purchases. Other significant export markets for the EU are Eastern Europe, Chile, and Australia. Given the changing political winds throughout the world, it is possible that during 2017 the trade sanctions imposed by the US and the EU against Russia will be lifted. Such a political move would present an opportunity for potato exporters like Poland and Germany to expand their exports to countries such as Russia, Belarus, Kazakhstan, and the Ukraine.

(Read more about Climate Variations and Potato Production in Japan)