World Grain - December 2012 - 26

COUNTRYFOCUS

Focus on the Netherlands
Although not a big grain producer, the country is a major player in grain trading
by Chris Lyddon

Key Facts
Capital: Amsterdam Population: 16,730,632 (July 2012 est.) Religions: Roman Catholic 30%, Protestant 20% (Dutch Reformed 11%, Calvinist 6%, other Protestant 3%), Muslim 5.8%, other 2.2%, none 42% (2006). Location: Western Europe, bordering the North Sea, between Belgium and Germany. Government: Constitutional monarchy. Chief of state: Queen Beatrix (since April 30, 1980); head of government: Prime Minister Mark Rutte (since Oct. 14, 2010). Economy: The Dutch economy is the fifth largest in the euro-zone and is noted for its stable industrial relations, moderate unemployment and inflation, a sizable trade surplus, and an important role as a European transportation hub. Industrial activity is predominantly in food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs only 2% of the labor force but provides large surpluses for the food processing industry and for exports. The Netherlands, along with 11 of its E.U. partners, began circulating the euro currency on Jan. 1, 2002. After 26 years of uninterrupted economic growth, the Dutch economy, which is highly dependent on an international financial sector and international trade, contracted by 3.5% in 2009 as a result of the global financial crisis. The Dutch financial sector suffered in part because of the high exposure of some Dutch banks to U.S. mortgage-backed securities. In 2008, the government nationalized two banks and injected billions of dollars of capital into other financial institutions, to prevent further deterioration of a crucial sector. The government also sought to boost the domestic economy by accelerating infrastructure programs, offering corporate tax breaks for employers to retain workers, and expanding export credit facilities. The stimulus programs and bank bailouts, however, resulted in a government budget deficit of 5.3% of GDP in 2010 that contrasted sharply with a surplus of 0.7% in 2008. The government of Prime Minister Mark Rutte began implementing fiscal consolidation measures in early 2011, mainly reductions in expenditures, which resulted in an improved budget deficit of 3.8% of GDP. GDP per capita: $42,000 (2011 est.); inflation: 2.3% (2011 est.); unemployment: 4.4% (2011 est.). Currency: Euro (EUR): 0.7799 euros equal 1 U.S. dollar (Nov. 21, 2012). Exports: $550.2 billion (2011 est.): machinery and equipment, chemicals, fuels; foodstuffs. Imports: $492.1 billion (2011 est.): machinery and transport equipment, chemicals, fuels, foodstuffs, clothing. Major crops/agricultural products: Grains, potatoes, sugar beets, fruits, vegetables; livestock. Agriculture: 2.7% of GDP and 2% of the labor force. Internet: Code: .nl; 13.699 million (2012) hosts and 14.872 million (2009) users.
Source: CIA World Factbook

U. K.

Although its fresh ﬂower industry is legendary, the Netherlands is a relatively small agricultural producer. It is, however, of vital importance in grain trading because of the huge signiﬁcance of its ports, notably Rotterdam, and its traditional focus on trading in all commodities. “Because of the country’s strategic location on the North Sea and the Rhine, trade, exports and distribution are ingrained in the Dutch character,” the USDA attaché wrote in a report on the country’s agricultural economy and policy published last year. “The Port of Rotterdam is among the most important sea ports in the world. Amsterdam Schiphol Airport occupies a similar position in Europe. Their geographic location and function as international hubs in Europe are major advantages.” The European grain trade organization, COCERAL, puts total soft wheat production in the Netherlands in 2012 at 1.343 million tonnes on 158,000 hectares. Production the year before was 1.36 million tonnes on 160,000 hectares. Barley production is put at 229,000 tonnes, up from 208,000 in 2011, with a rise in yield per hectare to 64.5 tonnes from 59.4 on an unchanged area of 35,000 hectDENMARK N NMARK K ares. The Netherlands produced, according to COCERAL, 304,000 tonnes of maize, up NETHERLANDS from 293,000 in 2011, with yield down at 117 tonnes a hectare from 122, while area rose to GERMANY 26,000 hectares from 24,000 the year before. BE BELGIUM BE M “Mean population density is 487 inhabitants LUX. per square kilometer, making the Netherlands FRANCE one of the most densely populated countries in the world,” the attaché report said. LIECH. LIECH The country has a topography that is unique. “Th N “The Netherlands is a low-lying country, with about 27% of its area and 60% of its population located below sea level,” the report said. “Signiﬁcant areas have been gained through land reclamation and preserved through an elaborate system of polders and dikes. The majority of the country is very ﬂat, with the exception of foothills of the Ardennes in the far southeast and several low-hill ranges in the central parts created by ice-age glaciers.” It put the area of the Netherlands at a total of over 3.7 mil-

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