Competitiveness of the EU dairy industry

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Competitiveness of the EU dairy industry

Brazil, Germany and the USA are the most striking countries in the list, with

(very) high imports and also (high) exports. These countries' trade results are

even more striking given the fact that the average import price is higher than

the average export price. Australia and Poland have the same pattern, only the

value of imports is much lower than the value of exports in both countries. From

price relationships Italy has the best dairy trade balance from the value viewpoint:

Italy imports low value dairy products and exports high value products.

From the global viewpoint, in which the EU-15 dairy production is much more

expensive than dairy production elsewhere, specialisation in products with the

highest added value is therefore most effective for a country with a low selfsufficiency.

The relationships between average import and export prices do not

give any indication on profitability however.

The annual growth rates show clearly that the developing countries, such as

Southern America, are gaining world market share. The southern American

countries in particular grew very strongly. This figure also makes clear that the

increase in EU imports is higher than that of exports. This is easy to understand,

as the EU CAP makes it impossible for countries to increase production in a

situation of growing demand in the world market.

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