A recent study published by the European Commission that looked at the impact of agri-food imports on agricultural production in the EU, found that such imports were mainly complementary to EU production and resulted in limited replacement.
Carried out by by Ecorys and Wageningen University and Research, the study analysed the period from 2005-2018. It revealed that such agri-food imports were mainly composed of raw and intermediate products, with the share of finished products declining.
Entitled Study on agri-food imports and their role in the EU supply chains it found that the impact of agri-food imports is mainly complementary to EU production.
It also found that the origin of agri-food imports evolved and diversified in that timeframe with the share of imports from European (non-EU) and Southeast Asian countries increasing, and those from South America declining in relative terms.
As well as looking at the impact of agri-food imports on EU agricultural production the study also analysed the economic, social and environmental implications.
How were they complementary?
In answering the question in more detail of how import changes were complementary to EU agri-production, the study outlined that, for many products, import volume increases happen simultaneously with increased production volumes, which may indicate complementarity, rather than competition.
For some products, imports decreased while EU domestic production increased, as is the case for wheat.
For a small subset of products, both imports and production are declining, indicative that EU agriculture and demand is shifting away from these products such as soya meal and tobacco.
The report acknowledged that there were notable structural changes across the agricultural sector during the study period, demonstrated by:
- A decrease in the overall number of farms;
- Major shifts in cropping patterns;
- Increasing concentration;
- Higher yield rates, in a context of a modest decline in the EU’s arable land use.
While agri-food imports are a contributing factor to these structural changes, it is likely that other factors were more important, the report said, such as:
- Shifts in the domestic demand pattern, for biofuels and animal feed, for example;
- Exposure to the single market in the context of EU enlargement.
The report also stated that there was, generally, improved productivity between 2005 and 2018 with average tonnes produced per hectare of utilised agricultural area increasing over this time period – the exceptions are triticale, rape and turnip seed and tobacco.
Other findings
For some products, the reliance of imports suggests potential exposure to some supply-chain risks.
However, a number of policy instruments help to mitigate these risks, including income support under the Common Agricultural Policy (CAP) or tariff-rate quotas under EU trade policy.
Business strategies also mitigate those risks, according to the study, through diversification strategies, upgrading of production standards and branding or value chain restructuring.
The study also concluded that changes in agri-food imports is only one of many contributing factors to structural changes of the EU farming sector, for instance regarding labour outflows and the competitiveness of the EU agri-food sector.
The study was guided by three themes covering 13 study questions, ranging from an overview of agri-food imports, the typologies of agri-food value chains and of the drivers behind these import trends, to questions assessing their impacts.