7 Countries That Dominate the Global Food Export Market

Food is one of the most essential commodities in the world, and the global food export market is worth billions of dollars every year. Some countries have a competitive advantage in producing and exporting certain types of food, while others rely on imports to meet their domestic demand. In this article, we will look at the top seven countries that dominate the global food export market, based on the data from 2020.

1. United States

The US is the world’s largest food exporter, accounting for 10% of the total value of food exports in 2020. The US exported $124 billion worth of food products, mainly soybeans, wheat, corn, meat, dairy, fruits and nuts. The US has a large and diverse agricultural sector, supported by advanced technology, infrastructure and subsidies. The main destinations for US food exports are Canada, Mexico, China, Japan and Germany.

2. Netherlands

The Netherlands is the second-largest food exporter in the world, with a 6% share of the global market. The Netherlands exported $79 billion worth of food products in 2020, mainly vegetables, flowers, dairy, meat and processed foods. The Netherlands has a highly efficient and innovative agricultural sector, with a strong focus on quality, sustainability and logistics. The main destinations for Dutch food exports are Germany, Belgium, France, the UK and Italy.

3. Brazil

Brazil is the third-largest food exporter in the world, with a 6% share of the global market. Brazil exported $73 billion worth of food products in 2020, mainly soybeans, sugar, coffee, meat and poultry. Brazil has a vast and fertile land area, with favorable climatic conditions and abundant natural resources. The main destinations for Brazilian food exports are China, the EU, the US and Japan.

4. China

China is the fourth-largest food exporter in the world, with a 5% share of the global market. China exported $64 billion worth of food products in 2020, mainly rice, vegetables, fruits, fish and seafood. China has a large and diverse agricultural sector, with a huge domestic market and growing demand for high-quality and safe food products. The main destinations for Chinese food exports are Hong Kong, Japan, South Korea and the US.

5. Germany

Germany is the fifth-largest food exporter in the world, with a 5% share of the global market. Germany exported $63 billion worth of food products in 2020, mainly dairy products, meat products, bakery products and beverages. Germany has a modern and competitive agricultural sector, with a high level of quality standards and consumer preferences. The main destinations for German food exports are France, the Netherlands, Italy, Poland and the UK.

6. France

France is the sixth-largest food exporter in the world, with a 4% share of the global market. France exported $49 billion worth of food products in 2020, mainly wine, cheese, cereals, meat products and processed foods. France has a rich and diverse agricultural heritage, with a strong reputation for excellence and tradition. The main destinations for French food exports are Germany, Belgium, Italy, Spain and the UK.

7. Canada

Canada is the seventh-largest food exporter in the world, with a 4% share of the global market. Canada exported $47 billion worth of food products in 2020, mainly wheat, canola, pulses, meat and seafood. Canada has a vast and diverse agricultural sector, with a high level of productivity and innovation. The main destinations for Canadian food exports are the US, China, Japan, Mexico and Indonesia.

These seven countries together accounted for 40% of the total value of food exports in 2020, showing their dominance and influence in the global food trade. However, the food export market is also dynamic and competitive, and other countries may emerge or challenge the existing leaders in the future.

The Global Food Export Industry: Trends and Challenges

The global food export industry is a vital sector that contributes to food security, economic growth, and international trade. According to the Food and Agriculture Organization (FAO), the value of world agricultural products exports (excluding fish) reached USD 1.2 trillion in 2020, an increase of 3.5 percent from 2019. However, the industry also faces many challenges such as climate change, trade disputes, pandemics, and inflation. In this blog post, we will look at some of the trends and challenges of the global food export industry, focusing on the top food exporting countries and their main products.

The Top Food Exporting Countries in the World

The United States of America was the largest exporter of food (excluding fish) in 2020 with USD 124 billion (10 percent of the total), followed by the Netherlands (USD 79 billion, or 6 percent) and Brazil (USD 73 billion, or 6 percent). The top three food exporting countries accounted for 22 percent of the global food exports in 2020. The main food products exported by the US were soybeans, wheat, and corn; by the Netherlands were vegetables, dairy products, and meat; and by Brazil were soybeans, sugar, and meat.

The other countries in the top ten list of food exporters were China (USD 68 billion), Germany (USD 65 billion), France (USD 56 billion), Canada (USD 49 billion), Spain (USD 38 billion), Belgium (USD 36 billion), and Italy (USD 35 billion). These countries exported a variety of food products such as rice, milk, sugar beets, potatoes, barley, fresh vegetables, cheese, wine, chocolate, and pasta. The top ten food exporting countries represented 54 percent of the global food exports in 2020.

The Growth Rate and Volatility of Food Exports

The global food export industry has experienced periods of growth and decline in the past two decades. According to the FAO, the value of world agricultural products exports (excluding fish) grew at an average annual rate of 5.8 percent from 2000 to 2010 but slowed down to 1.9 percent from 2010 to 2020. The growth rate was affected by various factors such as supply and demand conditions, exchange rate fluctuations, trade policies, weather events, and geopolitical tensions.

The global food export industry also faced high volatility in prices and volumes due to supply shocks and demand shocks. For example, the COVID-19 pandemic disrupted the global food supply chains and trade flows in 2020, causing shortages, surpluses, price spikes, and price drops in different markets. The Russia-Ukraine conflict in 2014 affected the wheat exports from both countries. The droughts in Brazil in 2014 and 2015 reduced the soybean and sugar production and exports. The trade war between the US and China since 2018 imposed tariffs on various agricultural products such as soybeans, corn, pork, and wine.

The Future Outlook of the Global Food Export Industry

The global food export industry is expected to face more challenges and opportunities in the future as the world population grows, the climate changes, and the consumer preferences evolve. According to the FAO, the world population is projected to reach 9.7 billion by 2050, which will increase the demand for food by 50 percent. The climate change is expected to affect the agricultural production and trade patterns by altering the temperature, precipitation, pests, diseases, and extreme events. The consumer preferences are expected to shift towards more healthy, diverse, convenient, and sustainable food products.

To cope with these challenges and opportunities, the global food export industry will need to adopt more innovative technologies such as biotechnology, digital agriculture, precision farming, blockchain, artificial intelligence, and e-commerce. These technologies can help improve the productivity, quality, safety, traceability, and competitiveness of food exports. Moreover, the global food export industry will need to enhance its resilience and adaptability by diversifying its markets, products, and sources; strengthening its infrastructure and logistics; reducing its environmental footprint; and promoting its social responsibility.

References:

http://www.nationalaglawcenter.org/wp-content/uploads/assets/crs/RL33499.pdf

http://www.carlisle.army.mil/usawc/parameters/1991/1991%20doughty%20and%20raugh.pdf