Economics and Agricultural Markets in Belgium

With Brussels as its capital, Belgium hosts the headquarters of both the European Union and the North Atlantic Treaty Organization (NATO). The country is a small nation in Northwestern Europe with a total territory of more than 30.000 square kilometers, which is about the same size as the state of Maryland. Belgium has a total population of over 11 million citizens and has a northern coastline along the North Atlantic Ocean. Furthermore, Belgium is a founding member of the EU and utilizes the Euro as its national currency. With an annual gross domestic product (GDP) of approximately US$500 billion, Belgium’s economy is divided into 1% agriculture, 22% manufacturing, and 77% services. However, the agriculture industry utilizes some 44% of the national territory, while another 22% is forested. Similarly, the Belgian agricultural industry employs 1% of the national labor force, while manufacturing employs about 19% and services employ another 80%.

In terms of natural resources and geography, Belgium is a flat country with some rolling hills and is rich in construction materials, silica sand, carbonates, and arable land. Likewise, within the manufacturing industry, Belgium produces engineering materials, base metal goods, motor vehicles, transportation equipment, scientific instruments, processed food and beverages, chemicals, textiles, glass, and petroleum. Within the agricultural industry, Belgium’s main products are sugar beets, fresh vegetables, fruits, grain, tobacco, beef, veal, pork, and milk. This article explores the status of agricultural markets in Belgium.

Economics and Agricultural Markets in Belgium

As in the rest of the EU, the Belgian agricultural industry is heavily subsidized and protected under the Community’s Common Agricultural Policy (CAP). Furthermore, the CAP and the European Parliament regulate and legislate EU-wide in matters regarding agricultural best practice standards as well as the very limited use of genetically modified crops. Throughout recent years, the Belgian agricultural industry has boasted approximately 37.000 farming operations occupying some 1.3 million hectares of land. Given that Belgium is divided into two main regions, Flanders to the north and Wallonia to the South, agricultural practices are slightly different throughout the country. Normally, farms in Wallonia are double the size as Flemish farms. Similarly, Walloon farms tend to specialize in crops such as grains, sugar beets, and potatoes, while farms in Flanders work mostly with horticultural crops and animal production. Throughout recent years, the total value of Belgium’s agricultural production has been of approximately €8 billion. Though a small part of the national GDP, agriculture accounts for more than 10% of Belgium’s total exports, the majority of which is processed in Flanders.

In terms of trade, all of Belgium’s key partners are fellow EU member states, mainly the Netherlands, Germany, and France. Overall, Belgium is a net exporter of agricultural goods. For instance, the country produces over 150% of the beef and poultry that its domestic market consumes. Likewise, Belgium produces a staggering 260% of its domestic pork consumption and also exports a net total of some €200 million worth of dairy products annually.

(Read more about the Benefits of Perennial versus Annual Crops)