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Grain and Flour Market in UK, Netherlands and Belgium

09 February 201616 min reading
According to the 2015 UK Flour Milling Industry report of NABIM, the industry has been growing in the recent years. The reason is the increasing number of mills which have been established recently. British milling industry which is growing by this means has now 30 companies operating 50 mills. Wheat flour production of Netherlands is concentrated in a handful of milling companies operating fewer than 10 mills. It is stated that the top three milling companies account for more than 70% of Dutch milling capacity. Also, it is estimated that there are 100-150 mills in Belgium where milling is a developed industry. h_74_ulke England or The Great Britain which is located on the northwest of Europe and is called as England in Turkey consists of England, Wales, Scotland and Northern Ireland. United Kingdom is a constitutional monarchy with a parliamentary system of governance and has a population of 64.5 million as to the estimates for 2014. Having a temperate climate, all the lands and regions, except for the mountainside of Northern Scotland, Wales and some areas of England, are suitable for agriculture and raising livestock. Being one of the smallest countries in European Union, the Netherlands borders the North Sea to the northwest and is located between Germany and Belgium. More than half of the land of The Netherlands which has a flat geography is below sea level. The Netherlands which has an impressive reputation for its agricultural production has a humid and rainy weather; rainfall continues all the year round. By February, 2015, the Netherlands has a population of 16.9 million. Belgium is located next to France and Netherlands in northwest and the North Sea. The country borders the Netherlands to the North, Germany and Luxemburg to the East and France in West and South. 20 percent of the country is covered by forests; 28 percent is covered by arable lands; 29 percent is covered by agricultural lands; 19 percent is covered by residential areas. Having a population of 11.3 million, Belgium is one of the most densely populated countries in Europe right after the Netherlands. GENERAL ECONOMIC OUTLOOK In terms of economy, UK is the third in EU after Germany and France, seventh in the world. Nearly two third of GDP is caused by private consumption. The share of manufacturing industry in GDP is decreasing annually in England as in many developed countries. On the other hand, the importance of services has increased and it formed nearly ¾ of England’s GDP. Services industry forms 78.9% of the country’s GDP by 2014. The economy of Netherlands is a mixed market economy that private and public sectors play significant roles equally. The economy has a strong international movement. The Netherlands is well known for its high level financial and vocational services; it stands out as one of the richest countries with highest welfare level. According to the listing of IMF, the Netherlands is the 17th largest economy in the world. The main driving powers of the economy are transportation/logistics, chemical industry, trade and services. Industrial activities in the country mainly focus on food processing, chemicals, oil processing and electrical machinery. Being one of the founding members of European Union, Belgium is one of the most developed market economies. When the share of export and import amount in GNP considered, it is one of the leading open economies among EU countries, except for Luxemburg and Ireland. Its foreign trade depends mainly on processing of imported raw materials or semi-manufactured products and exporting them. Despite the considerable share of industry, the services industry forms 78 percent of GDP. The share of agriculture in economy is also less than 1 percent. THE PLACE AND IMPORTANCE OF AGRICULTURE Agriculture industry of England is capable of meeting two third of the total food demand in the country because of high fertility and favorable climate conditions. England both has a wide product range and long production season thanks to its mild climate and balanced rainfall throughout the year. Nearly 70 hectare farms in England are counted as highly large as to the EU standards. Despite its high fertility rates, agriculture industry in England has a serious crisis due to decreasing prices and rising exchange rates. This caused the income of agricultural population to decrease. In addition there was a serious food crisis in the country due to the foot-and-mouth and mad calf diseases appeared in 2011. These diseases caused the agricultural production practices in the country to be reconsidered; consumers’ worries about food and fertilizer usage increased; and this caused organic food to be demanded more. Therefore, agricultural lands for organic production and the number of farmers in these areas increased significantly. The Netherlands is a small country in terms of its lands, dense population and per capita land. Per capita land is 0.2 hectare. The technologies used in agriculture made the country the second significant agricultural products exporter in Europe. Most of the agricultural businesses are small and around 20 hectare. However modern technics are used. The country ranks third after USA and France in terms of the value of agricultural products export ($55 billion) and exports 60 percent of agricultural production. 60 percent of total area is reserved for agricultural production. Regarding the “Priority Ecologic Structure” policy which is implemented by the government, the agricultural lands of 150 thousand hectare is planning to be “natural area” until 2018. Agricultural production, forestry, hunting and fishery forms only 1 percent of GDP in Belgium. Only 0.6% percent of active population works in agricultural industry. Totally 57 percent of the country consists of agricultural lands. Primary agricultural products are sugar beet, linen, grains and potatoes. The country’s agricultural policies are determined on EU level. GRAIN PRODUCTION IN ENGLAND Wheat comes first among the grain products in England. According to the data of United Nations Food and Agriculture Organization (FAO), wheat production amount of England is between 13 and 17 million tons between 2005/06 and 2014/15 seasons. The highest production amount was reached at 17.2 million tons in 2008/09 season; this amount decreased in the following seasons and was recorded as 15.2 million tons in 2011/12 season. Wheat production amount which decreased to 13.2 million tons in 2012/13 season reduced again to 11.9 million tons in 2013/14 season. It increased to 16.6 million tons with a rise of 4.7 million tons in 2014/15 season. Another prominent product in England’s agricultural production is barley. Barley production amount between 2005/06 and 2014/15 seasons is between 5 and 7 million tons. Exceeding 6 million tons in 2008/09 and 2009/10 seasons, barley production decreased again below 6 million tons in the next season. The highest barley production amount was reached at 7 million tons in 2013/14 season. England produced 6.9 million tons wheat in 2014/15 season. Oats comes right after barley in England’s grain production. Oats production which was recorded as 532 thousand tons in 2005/06 season exceeded over 700 thousand tons between 2006/07 and 2009/10 seasons. Oats production which was realized as around 600 thousand tons in the following three seasons reached the highest level with 964 thousand tons. Oats production amount was 828 thousand tons in 2014/15 season. It is seen that England’s rye production was realized around 31-42 thousand between 2005/06 and 2013/14 season; this amount seemed to reach at 70 thousand tons in 2014/15 season. GRAIN PRODUCTION IN THE NETHERLANDS Wheat comes first among the grain products in the Netherlands as in England. Wheat production amount between 2005/ and 2014/15 seasons is around 1 million tons. The highest production amount was reached at 1.402 million tons in 2009/10 season; this amount was recorded as 1.302 million tons in 2012/13 season, 1.335 million tons in 2013/14 season and 1.304 million tons in 2014/15 season. Another prominent product in the Netherlands’ agricultural production is corn. The highest corn production amount between 2005/06 and 2014/15 seasons was reached at 253 thousand tons in 2005/06 season. The lowest amount was reached at 173 thousand tons in 2014/15 season. Another significant grain product is barley. Producing 307 thousand tons in 2005/06 season, the Netherlands reduced this amount gradually. Barley production was recorded as 208 thousand tons in 2013/14 season and 196 thousand tons in 2014/15 season although it exceeded over 300 thousand tons again. GRAIN PRODUCTION IN BELGIUM The most produced grain product is wheat in Belgium as in many countries. Wheat production amount of Belgium in 2005/06 and 2014/15 seasons is between 1.5 and 1.9 million tons. Recorded as 1.8 million tons in 2010/11 season, wheat production reduced to 1.6 million tons in 2011/12 season; however it reached to 1.8 million tons in 2012/13 and 2013/14 seasons. 1.994 million tons production which was realized in 2014/15 season was also the highest production amount of the last 10 seasons. Another prominent product in Belgium’s grain production is corn. The production amount of corn between 2005/06 and 2014/15 seasons is below 900 thousand tons. Realizing the highest corn production of the last 10 years with 859 thousand tons in 2011/12 season, Belgium decreased this to 701 thousand tons in 2012/13 season, increased to 826 thousand tons in 2013/14 season. Corn production continued to decrease in 2014/15 season and was recorded as 662 thousand tons. Another important product in Belgium’s grain production is barley. Barley production which was realized between 300-460 thousand tons in the last 10 years was recorded as 434 thousand tons in 2014/15 season. ın oats production, production amount is low compared to the other grain products. The production amount which did not exceed 34 thousand tons in the last 10 years was recorded as 21 thousand tons in 2014/15 season. GRAIN TRADE IN ENGLAND The prominent product in England’s grain trade is wheat as in production. According to the data of FAO, export amount on wheat basis reached the highest amount of the last 10 years with 3.3 million tons in 2010/11 season. Recorded as 2.2 million in 2011/12 season, wheat export reduced to 1.5 million tons in 2012/13 season and 447 thousand tons in 2013/14 season. Barley follows wheat in terms of exports. The highest amount in barley export was reached with 1 million tons in 2010/11 season. Export amount which decreased to 799 thousand tons in 2011/12 season reached to 589 thousand tons in 2012/13 season. Exported barley amount was 849 thousand tons in 2013/14 season. Rice and corn export of England is highly low. According to the data of FAO, export amount of these two products is between 10 thousand and 50 thousand. Wheat import of England was realized as 1-1.3 million tons between 2005/06 and 2010/11 seasons. Wheat import which decreased to 901 thousand tons in 2011/12 season increased to 1.7 million tons in 2012/13 season and 2.9 million tons in 2013/14 season. Corn follows wheat in England’s grain import. Importing more than 1 million tons of corn between 2005/06 and 2008/09 seasons decreased this amount to around 900 thousand tons in 2009/10, 2010/11 and 2011/12 seasons. Increasing again in 2012/13 season, import amount rose to 1.2 million tons and 2 million tons in 2013/14 season. Another imported product is rice. Importing between 500-600 thousand tons of rice between 2005/06 and 2009/10 seasons, England increased this amount to 614 thousand tons in 2010/11 season and 634 thousand tons in 2012/13 season. The amount of imported rice was 592 thousand tons in 2013/14 season. Barley import remains below 200 thousand tons. Barley import which was 128 thousand tons in 2011/12 season increased to 161 thousand tons in 2012/13 season and 194 thousand tons in 2013/14 season. GRAIN TRADE IN THE NETHERLANDS Wheat is the prominent product in the Netherlands’ grain trade as in production. Wheat export amount of the country showed an increase between 2005/06 and 2009/10 seasons and decreased after 2010/11 season. Wheat export which was 336 thousand tons in 2005/06 season increased to 603 thousand tons in 2007/08 season and reached the highest amount with 888 thousand tons in 2009/10 season. Being realized as around 500 thousand tons in the following seasons, wheat export was recorded as 586 thousand tons in 2013/14 season. Corn follows wheat in terms of exports. Corn export gradually increased between 2010/11 and 2013/14 seasons. Corn export which was 136 thousand tons in 2010/11 season increased to 247 thousand tons in 2011/12 season, 386 thousand tons in 2012/13 season. Recorded corn export amount is 436 thousand tons in 2013/14 season. The highest barley export amount was reached with 471 thousand tons in 2005/06 season between 2005/06 and 2013/14 seasons; the lowest amount was reached with 84 thousand tons in 2012/13 season. Exported barley amount was 264 thousand tons in 2013/14 season. It is seen that rice export did not exceed 200 thousand tons between 2005/06 and 2013/14 seasons. Rice export was realized as around 130 thousand tons in 2011/12, 2012/13 and 2013/14 seasons. Wheat import of the Netherlands was realized as 3-4 million tons in 2005/06 and 2006/07 seasons; this amount increased over 4 million tons in 2007/08, 2008/09 and 2009/10 seasons. Wheat import which increased to 5.2 million tons in 2010/11 season decreased to 4 million tons in the following season. Recorded wheat import was 3.5 million tons in 2013/14 season. Another important product in imports is corn. Corn import was realized as 2.2-3.4 in 2005/06 and 2010/11 seasons. Corn import which increased to 4 million tons in 2012/13 season was recorded as 4.2 million tons in 2013/14 season. Barley import was recorded with 1-2 million tons between 2005/06 and 2013/14 seasons. The highest import amount was reached with 2 million tons in 2010/11 season. Barley import was recorded as 1.7 million tons in 2013/14 season. Rice import of the Netherlands did not exceed 244 thousand tons between 2005/06 and 2013/14 seasons. Rice import was 219 thousand tons in 2013/14 season. GRAIN TRADE OF BELGIUM The prominent product in Belgium’s grain trade is wheat. Wheat export was realized around 800 thousand tons 2005/06 and 2007/08 seasons; this amount increased to 975 thousand tons in 2008/09 season. Wheat export which decreased to 700 thousand tons in 2009/10 and 2010/11 seasons continued to decrease and was recorded as 577 thousand tons in 2011/12 season. Wheat export was realized as 648 thousand tons in 2012/13 season and 622 thousand tons in 2013/14 season. The most exported product is corn after wheat. The highest export amount was reached with 550 thousand tons in 2008/09 season between 2005/06 and 2013/14 seasons; the lowest export was reached with 151 thousand tons in 2005/06 season. Corn export amount was 308 thousand tons in 2013/14 season. The highest barley export amount was reached with 403 thousand tons between 2005/06 and 2013/14 seasons; the lowest amount was reached with 168 thousand tons in 2011/12 season. Exported barley amount was 342-280 thousand tons between 2012/13 and 2013/14 seasons. Rice export amount was recorded as 200 thousand and 280 thousand tons in 2007/08 and 2013/14 seasons. Rice export amount was 272 thousand tons in 2013/14 season. The prominent product in Belgium’s grain import is wheat. Wheat import was realized as around 3.5 million tons between 2005/06 and 2013/14 seasons. 3.9 thousand tons of wheat was imported in 2012/13 season and this amount decreased to 3.5 million tons in 2013/14 season. Another important product is barley. Barley import was recorded as 1.7 million ton in 2011/12 and 2012/13 seasons. Barley import was 1.8 million tons in 2013/14 season. Corn import amount gradually increased. Remaining below 1 million tons between 2009/10 and 2010/11 seasons, corn import increased to 1.2 million tons in 2011/12 season and 1.7 million tons in 2012/13 season. Corn import amount was recorded as 1.4 million tons in 2013/14 season. Also, the highest rice import amount was reached with 429 thousand tons (2011/12 season) between 2005/06 and 2013/14 seasons. Recorded as 388 thousand tons in 2012/13 season, rice import amount increased to 433 thousand tons in 2013/14 season. FLOUR INDUSTRY IN ENGLAND, NETHERLANDS AND BELGIUM According to the 2015 UK Flour Milling Industry report of NABIM, the industry has been growing in the recent years. The reason is the increasing number of mills which have been established recently. British milling industry which is growing by this means has now 30 companies operating 50 mills. It is stated that of these companies, the four largest ones account for approximately 65% of UK flour production. In addition, as to the data of NABIM, flour production amount in 2013 was 4.998 million tons and this amount presumably reached 5.397 million tons in 2014. While most of the produced flour (47.7 percent) is used for White bread, a serious amount of flour is used for biscuit (9.3 percent) and whole grain bread (6 percent). Wheat flour export of UK exceeded 200 thousand tons by 2011/12 season, reached at 303 thousand tons in 2012/13 season and 296 thousand tons in 2014/15 season. Flour import was also recorded as 60 thousand tons in 2012/13 season and 126 thousand tons in 2014/15 season. According to the report of Agriculture & Horticulture Development Board (AHDB), Wheat flour production of Netherlands is concentrated in a handful of milling companies operating fewer than 10 mills. It is stated that the top three milling companies account for more than 70% of Dutch milling capacity. While it is stated that the majority of the wheat used by these three mills is imported most production occurs in the western regions of the Netherlands. Flour export of the Netherlands decreased below 100 thousand tons by 2011/12 season and was recorded as 50 thousand tons in 2012/13 season and 60 thousand tons in 2013/14 season. Also flour import which exceeded 400 thousand tons in 2010/11 season continued to increase and exceeded 500 thousand tons in 2011/12 and 2012/13 seasons. Recorded flour import amount was 406 thousand tons in 2013/14 season. Belgium is one of the countries where milling industry has developed. Having a deep-rooted history, the milling industry of Belgium has been undergoing a strong structuring. The number of mills decreased today and they turned into complicated mills. It is estimated that there are 100-150 mills in the country. Flour export of Belgium decreased between 2005/06 and 2013/14 seasons. Decreasing below 700 thousand tons in 2009/10 season, flour export reduced below 600 thousand tons and was recorded as 553 thousand tons in 2012/13 season, 508 thousand tons in 2013/14 season. Flour import was also recorded as 196-278 thousand tons in those seasons. Flour import amount was 241 thousand tons in 2013/14 season.
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