World Grain - May 2021 - 20

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THE NETHERLANDS
Country is 'gateway for ingredients
for food and feed in Europe'
by Chris Lyddon

The Netherlands is the second biggest exporter of food in the
world behind the United States. The small northwestern European nation does have a highly dynamic food and agriculture sector, but the real reason for its success is a strategic location surrounded by some of the world's most economically
successful countries, with major ports and well-developed
road, rail and water transport systems to move goods inland.
A long history of trading prowess adds to its advantages.
The Dutch farm ministry, as of Jan. 21, 2021, put total
agricultural exports at €95.6 billion ($116.2 billion), a rise
of 1% on 2019, mainly because of increased re-exports of
agricultural products of foreign origin.
Minister Carola Schouten noted that Dutch farmers " have
not had the easiest year " because of the COVID-19 pandemic, as well as the effect of the UK's exit from the EU.
The biggest export customer is Germany, which takes 26%
of the Netherlands agricultural exports. Neighboring Germany, Belgium, the UK and France together account for 54%
of the total. The ministry explained that without a rise in exports to Germany and China in 2020 there would
have been an overall fall. By sector, the
biggest exports are flowers (€9.5 billion/$11.4 billion), meat (€8.7 billion/$10.5 billion), dairy and
eggs (€8.3 billion/$10 billion), vegetables (€7.1 billion/$8.6 billion) and fruit
(€7 billion/$8.4 billion).
The ministry explained
that the €95.6 billion total is made up of €65.3
billion/$78.7 billion in
products produced in the
Netherlands and €27.3
billion/$32.3 billion in reexported products that have
gone through little or no processing in the country.
The European grains sector
20

KEY FACTS
Capital: Amsterdam; note - The Hague is the seat
of government
Population: 17,337,403 (July 2021 est.)
Religions: Roman Catholic 23.6%, Protestant 14.9%
(includes Dutch Reformed 6.4%, Protestant Church
of The Netherlands 5.6%, Calvinist 2.9%), Muslim
5.1%, other 5.6% (includes Hindu, Buddhist, Jewish), none 50.7% (2017 est.).
Location: Western Europe, bordering the North
Sea, between Belgium and Germany.
Government: Parliamentary constitutional monarchy; part of the Kingdom of the Netherlands. Chief
of state: King Willem-Alexander (since April 30,
2013); head of government: Currently vacant; Prime
Minister Mark Rutte resigned on Jan. 15, 2021.
Economy: The Netherlands, the sixth-largest economy in the European Union, plays an important role
as a European transportation hub, with a consistently high trade surplus, stable industrial relations,
and low unemployment. Industry focuses on 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 food processing and
underpins the country's status as the world's second largest agricultural exporter. The Netherlands
is part of the euro zone, and as such, its monetary
policy is controlled by the European Central Bank.
The Dutch financial sector is highly concentrated,
with four commercial banks possessing over 80% of
banking assets and is four times the size of Dutch
GDP. In 2008, during the financial crisis, the government budget deficit hit 5.3% of GDP. Following
a protracted recession from 2009 to 2013, during
which unemployment doubled to 7.4% and household consumption contracted for four consecutive
years, economic growth began inching forward.
Since 2010, Prime Minister Mark Rutte's government has implemented significant austerity measures to improve public finances and has instituted
broad structural reforms in key policy areas, including the labor market, the housing sector, the energy market, and the pension system. In 2017, the
government budget returned to a surplus of 0.7%
of GDP, with economic growth of 3.2%, and GDP
per capita finally surpassed pre-crisis levels. The
fiscal policy announced by the new government in
the 2018-21 coalition plans for increases in government consumption and public investment, fueling
domestic demand and household consumption
and investment.
GDP per capita: $56,935 (2019 est.); inflation: 2.6%
(2019 est.); unemployment: 3.41% (2019 est.).
Currency: Euro (EUR): 0.83 euro equals 1 US dollar
(April 22, 2021).
Exports: $857.574 billion (2019 est.): refined petroleum, packaged medicines, broadcasting equipment, photography equipment, computers (2019).
Imports: $755.65 billion (2019 est.): crude petroleum, refined petroleum, broadcasting equipment,
computers, cars (2019).
Agriculture: 1.6% (2017 est.) of GDP and 1.2% of
the labor force.
Internet: Code: .nl; 16,243,928 users.
Source: CIA World Factbook

May 2021 / World Grain / World-Grain.com

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