Greek Business Extroversion through Food and Beverage Exports
The food and beverage industry has been in the past - but it is emerging today and in the near future - as a key factor in the contribution of Greek Exporters. The economic crisis and the inevitable restrictions (such as capital controls) have significantly affected business activities, causing a shrinking and introversion. In contrast, food and drinks resisted, gaining ground. Specifically, in the period 2012-2016 it recorded growth in total exports of the country, which recorded a decrease.
Wednesday, August 29, 2018
According to official outcomes by survey companies, based on the two-digit CN2 codes kept by ELSTAT, over the past five years, total exports of food and beverages increased cumulatively by 22.3%, reaching € 20.16 billion in 2016, while compared to last year, there was a further rise of 5.9%.
During the same period, the country’s total exports fell by 7.8%, falling in 2016 to € 25.4 billion, as a direct consequence of the extensive recession period that has affected Greek economy. In this context, the percentage share of the broader food and beverage industry in the export trade composition was strengthened by 6 points, from 15.4% in 2012 to 20.4% in 2016.
Regarding the composition of the exports of the sector by general category, the largest contribution in value is found in processed fruits and vegetables (mainly potatoes, cans, etc.) and then in fresh fruits, oils and fats (mainly olive oil,) fish (mainly fish farming products) as well as dairy products.
The food basket of our exports, specifically in 2016, refers to exports of processed fruit and vegetables amounted to € 945 million, remaining stable compared to 2015. Exports of fresh and dried fruit grew by 10.1%, to € 898 million, while exports of fats grew by 6.7% to € 705 million, mainly due to olive oil.
Also, fish grew by 9.8%, to € 657 million, while export was aided by dairy products with an increase by 3.1% to € 575 million.
Also, a significant increase was recorded in cereals (80%), in various packaging schemes (18.3%), confectionery (20%), meat and fish package (16.5%), coffee, tea and spices (15%) and a number of additional products.
In general, 2016 was a clear year of export for the majority of food categories, as exports fell only in five groups of goods, namely processed fruits and vegetables (small decrease), fats, oils, beverages, nuts and seeds; milling products.
Observing the evolution of exports over the past five years, it is noted that a significant cumulative increase - thus a positive contribution to the export activity of the food industry - was recorded by fats and oils (62.8%), dairy products (59.3% various preparations (60%), cereal preparations (43%), fresh fruit (16.5%) and others.
On the basis of the above mentioned figures and changes, in 2016 processed fruit and vegetables accounted for 18.2% of the sector’s exports, compared to 20.8% in 2012, fresh fruit occupied 17.3% against 18.2% in 2012, fats and oils 13.6%, a significant increase compared to 10.2% in 2012, fish 12.7% vs. 14.2% respectively, and dairy products 11.1% vs. 8.5% similarly.
The main export destination for the Greek food industry is the EU countries, at 78.4% in 2016, up from 75% in 2012. Last year, exports to the European market exceeded 4 billion, an increase of 6.1% compared to 2015, while the equivalent in third countries amounted to EUR 1.1 billion, up 5.3%. On a five-year basis, intra-Community export trade in the sector appears to have strengthened by 27.8% in terms of value, compared with 5.8% in third markets. Italy is the main export destination for the Greek food industry, with products worth € 1.03 billion (-3.5% versus 2015) exported to the Italian market in 2016. Most of our exports to Italy are for olive oil, which however is sold in bulk and at low prices either as a raw material for the Italian food industry or for the enrichment of Italian olive oil, which is available on the Italian and international markets.
Exports to Germany also increased by 7.1% (to € 725.6 million), the United Kingdom by 6.5% (to € 357.3 million), in Cyprus by 8.4% (to EUR 257.2 million), while the United States by 6.1% (in the € 298 million) is the country which is the main destination outside the EU, etc. In relation to 2012, exports to the United States (67.7%), Romania (56.8%), the United Kingdom (37.5%), Italy (37.3%) were among the main destinations for the export of Greek food products, marking a decrease only to Bulgaria (-7.9%).
In 2016, Italy absorbed nearly 20% of Greek food exports in value, Germany 14%, United Kingdom 7%, US 5,7%, and Cyprus 5%.
The performance of Greek exports in 2017seems to be different compared to the upward trend of previous years, as - according to the one-digit codes of the Standard Classification of International Trade and the data from the Center for Export Research and Studies (CERS) - the total exports of food and beverages to the first nine months of the year is mildly reduced by 2.8%, to the level of € 4.08 billion.
CERS provides more detailed information on specific products and their location on the country’s export map. Based on these, in the table of the 20 most exportable products for the nine months of the year we meet:
• 4th place the fish with exports of € 392.4m (4.6%),
• 5th place the cheese products, with exports of € 334.5m (5.4%),
• 6th place a number of processed vegetables, € 331.8m (10.1%),
• 9th place the virgin olive oil, € 282 million (-26%),
• 16th place apricots, cherries and peaches, € 152.5m (-10.3%),
• 18th place other food preparations, € 141.4m (24.4%).
The above mentioned products are particularly marked by the significant decrease in exports of olive oil, both in value and quantity, due to the respective decrease of cultivated land resulting in lower production during the last growing season, resulting in a loss of five positions in the classification (from 4th to 9th position).