Agriculture in Benelux: The case of Luxembourg

The Grand Duchy of Luxembourg is a small and landlocked country located in northwestern Europe. Luxembourg is a highly developed nation and a founding member of the European Union. Luxembourg has a total territory of almost 2.600 square kilometers, which is somewhat smaller than Rhode Island. Geographically, Luxembourg is dominated by rolling hills and shallow valleys. Similarly, the country has a total population of approximately 583.000 citizens, more than 90% of which live in a major city or urban setting, namely the capital city of Luxembourg. Currently, Luxembourg’s annual gross domestic product (GDP) is of about US$60 billion and its national economy has experienced positive economic growth upwards of 3.0% in recent years. The Luxembourg national economy is divided into 1% agriculture, 11% manufacturing, and 88% services. However, the agriculture industry utilizes some 51% of the national territory, while another 34% is forested. Likewise, Luxembourg’s agricultural industry employs another 1% of the national labor force, while manufacturing employs about 20% and services employ some 79%. Furthermore, it is estimated that over 100.000 foreign workers are employed in Luxembourg and come in everyday from neighboring Germany, France, and Belgium.

In terms of natural resources, Luxembourg has arable land as well as some minerals, such as iron ore. Within manufacturing, the national industry is focused on construction & real estate, metals & steel, information technology & telecommunications, cargo transportation & logistics, chemicals, engineering, tires, and glass. Similarly, a large sector of the Luxembourg economy is devoted to the tourism, financial services, and banking industries. In fact, Luxembourg is known for having one of the most favorable tax legislations in all of the European Union. Meanwhile, the country’s agricultural industry has as main products grapes, barley, oats, potatoes, wheat, fruits, dairy, and livestock. In terms of trade, Luxembourg’s main partners are fellow EU members, notably France, Belgium, Germany, and the Netherlands, as well as China and the United States. Lastly, Luxembourg has used the Euro as its official currency since its creation in 1999. This article explores land distribution and grain markets in Luxembourg.

Agriculture in Benelux: The case of Luxembourg

As a member of the European Union, Luxembourg’s domestic industry is protected under the Common Agricultural Policy (CAP). Likewise, in recent years, the average per capita protein intake of animal origin amongst the Luxembourger population has been of 69 grams daily. Meanwhile, cereals, roots, and tubers supply about 30% of the average food energy intake in the country.

Simultaneously, land distribution and the domestic cereals market in Luxembourg has transformed substantially throughout the last decades. In 2000, permanent pastures and meadows covered 65.000 hectares, while arable land covered another 62.000 hectares and permanent crops accounted for 1.000 hectares. Later, in 2014, permanent pastures and meadows in Luxembourg accounted for almost 67.000 hectares, while arable land represented approximately 63.000 hectares and permanent crops covered another 1.500 hectares. Similarly, in 2000, the country devoted almost 29.000 hectares of land to the production of cereals and produced approximately 153.000 metric tons annually. Meanwhile, in 2014, Luxembourg devoted more than 28.000 hectares of land to cereals production and yielded over 168.000 metric tons.

(Read more about Agriculture and Free Trade in the Canadian Economy)