Grain Import

Grain Import, 7 Reasons Why Grain Import is Vital for Europe

7 Reasons Why Grain Import is Vital for Europe’s Food Security

Grain import is the process of bringing grains from other countries to meet the domestic demand. Grain import is vital for Europe’s food security, especially in the wake of climate change, trade disputes and geopolitical tensions. Here are seven reasons why grain import is essential for Europe, along with some details and examples to illustrate each point.


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1. Europe is not self-sufficient in grain production.

According to the European Commission, Europe produced about 286 million tons of grains in 2022 but consumed about 300 million tons. This means that Europe had to import about 14 million tons of grains to cover the gap between supply and demand. This gap is expected to widen in the future, as the European population grows and the demand for grains increases. Moreover, the European grain production is vulnerable to weather shocks, such as droughts, floods and heat waves, which can reduce the yields and quality of the crops.

2. Europe relies on grain imports to diversify its sources and reduce its dependence on a few major exporters.

The main suppliers of grains to Europe are Ukraine, Russia, Canada, Argentina and the United States. However, these countries may face production shocks due to weather events, pests, diseases or political instability. For instance, in 2022, Ukraine was unable to export grain for four months due to a Russian naval blockade of its ports following its invasion of Ukraine. This caused a shortage of grain supply and a spike in prices in Europe. By importing grains from different regions, such as Australia, India, Brazil and Bulgaria, Europe can reduce the risk of supply disruptions and price volatility and ensure a more stable and secure supply of grains.

3. Europe needs grain imports to feed its livestock sector.

Grains are the main feed ingredient for poultry, pigs and cattle in Europe. According to the European Feed Manufacturers’ Federation, Europe consumed about 165 million tons of compound feed in 2022, of which about 60% was based on grains. Therefore, grain imports are crucial to ensure the availability and affordability of animal feed in Europe. Animal feed accounts for about 70% of the total cost of livestock production, so any increase in grain prices can have a significant impact on the profitability and competitiveness of the livestock sector. Moreover, the livestock sector is important for the European economy, as it provides employment, income and food for millions of people.

4. Europe uses grain imports to support its biofuel industry.

Grains are also used to produce biofuels, such as ethanol and biodiesel, which are blended with fossil fuels to reduce greenhouse gas emissions and enhance energy security. According to the European Renewable Ethanol Association, Europe produced about 6 billion liters of ethanol from grains in 2022, which required about 15 million tons of grains. The biofuel industry contributes to the European green transition, as it helps to reduce the dependence on oil imports, create jobs and stimulate innovation. However, the biofuel industry also competes with the food and feed sectors for grain resources, which can create a trade-off between food security and energy security.

5. Europe benefits from grain imports to improve its food quality and diversity.

Grains are not only used for direct human consumption, but also for processing into various food products, such as bread, pasta, biscuits, cakes, snacks and beverages. By importing grains with different characteristics, such as color, flavor, texture and nutritional value, Europe can offer a wider range of food options to its consumers. For example, durum wheat from Canada is used to make high-quality pasta in Italy; rye from Germany is used to make dark bread in Scandinavia; barley from Argentina is used to make malt for beer brewing in Belgium; and rice from India is used to make curry dishes in Britain.

6. Europe depends on grain imports to comply with its trade agreements and commitments.

As a member of the World Trade Organization (WTO), Europe has to respect its tariff rate quotas (TRQs) for grain imports, which allow a certain number of grains to enter the European market at a lower or zero duty. According to the WTO, Europe’s TRQs for grains amounted to about 12 million tons in 2022. These TRQs are part of the trade negotiations between Europe and its trading partners and aim to facilitate market access and promote fair trade. By fulfilling its TRQs obligations, Europe can maintain good trade relations with other countries and avoid trade disputes or sanctions.

7. Europe leverages grain imports to foster its international cooperation and development.

By importing grains from developing countries, Europe can support their economic growth, poverty reduction and food security. According to the CBI, Europe imported about 3 million tons of grains from developing countries in 2022, mainly from Kazakhstan, Moldova and Serbia. These countries benefit from preferential access to the European market under various trade schemes, such as the Generalized System of Preferences (GSP), the Everything but Arms (EBA) and the Stabilization and Association Agreements (SAA). By importing grains from these countries, Europe can help them to diversify their exports, increase their foreign exchange earnings, create jobs and improve their living standards.

Grain import is vital for Europe’s food security, as it helps to meet the domestic demand, diversify the sources, feed the livestock sector, support the biofuel industry, improve the food quality and diversity, comply with the trade agreements and commitments, and foster the international cooperation and development. Grain import is expected to remain important for Europe in the future, as the demand for grains may increase due to population growth, income growth and changing consumption patterns.

Grain Import: A Global Perspective

The global demand for grain is influenced by various factors, such as population growth, income levels, dietary preferences, climate change, trade policies, and biofuel production. In this blog post, we will examine some of the trends and statistics of grain import across the world, focusing on three major cereals: wheat, maize, and rice.


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Wheat Import: Egypt Leads the Way

Wheat is one of the most widely consumed cereals in the world, especially in regions such as North Africa, the Middle East, and Central Asia. According to Statista, the top five wheat importing countries in 2021/22 are Egypt (12.26 million metric tons), Indonesia (11.5 million metric tons), China (10 million metric tons), Turkey (8.5 million metric tons), and Bangladesh (7.5 million metric tons). These countries account for about 36% of the total global wheat import, which is estimated at 136.5 million metric tons by the International Grains Council. The main reasons for wheat import are insufficient domestic production, rising consumption, and food security concerns.

Maize Import: China Drives the Demand

Maize (or corn) is another important cereal crop that is used for both human consumption and animal feed. It is also a key ingredient for ethanol production, which has increased the demand for maize in recent years. According to the U.S. Department of Agriculture, the global maize import in 2021/22 is projected at 196.8 million metric tons, an increase of 9% from the previous year. The main driver of this growth is China, which is expected to import 28 million metric tons of maize, mainly from the United States and Ukraine. China’s maize import has surged due to a recovery in its hog sector after the African swine fever outbreak, as well as a lower domestic production due to drought and pests.

Rice Import: Nigeria Tops the List

Rice is a staple food for more than half of the world’s population, especially in Asia and Africa. It is also a highly traded commodity, with about 10% of the global production being exported. According to the Food and Agriculture Organization, the global rice import in 2021 is forecast at 47.4 million metric tons, a slight decrease from the record level of 48.5 million metric tons in 2020. The top five rice importing countries in 2021 are Nigeria (3 million metric tons), China (2.8 million metric tons), Philippines (2.6 million metric tons), Iran (2.3 million metric tons), and Saudi Arabia (1.7 million metric tons). These countries account for about 26% of the total global rice import. The main factors affecting rice import are domestic production shortfalls, population growth, urbanization, and changing consumer preferences.

Grain import is a complex and dynamic phenomenon that reflects the supply and demand conditions of different regions and countries. As the world population continues to grow and diversify, the demand for grain is likely to increase in the future. However, there are also challenges and uncertainties that may affect the global grain trade, such as climate change, trade disputes, price volatility, and food safety issues. Therefore, it is important to monitor and analyze the trends and statistics of grain import to better understand the global food system and its implications for food security and sustainability.

References:

https://ieeexplore.ieee.org/document/7095118

https://time.com/5663621/climate-change-food-supply/

https://climatechange.medill.northwestern.edu/2015/02/10/climate-change-linked-to-global-rise-in-food-prices/

https://www.statista.com/statistics/190435/principle-importing-countries-of-wheat-flour-and-products/
https://www.igc.int/en/grainsupdate/giu21_08.aspx
https://apps.fas.usda.gov/psdonline/circulars/grain.pdf
http://www.fao.org/economic/est/publications/rice-publications/rice-market-monitor-rmm/en/

https://www.world-grain.com/articles/18580-eu-grain-imports-surge-higher-in-2022-23

https://www.cbi.eu/market-information/grains-pulses-oilseeds/what-demand



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