the agricultural trade of the european union: consequences for virtual land trade and self-sufficien
DESCRIPTION
Discussing agricultural trade issues of the European Union (EU) is a continuous process. Currently, the apparent opportunities and the mainly perceived risks of the Transatlantic Trade and Investment Partnership (TTIP) between the EU and the United States and the Comprehensive Economic and Trade Agreement (CETA) between Canada and the EU are hotly debated. The authors of this paper have contributed to this discussion by looking at agricultural trade issues from another point of view.TRANSCRIPT
The agricultural trade of the European Union
Consequences for virtual land trade and self-sufficiency
Steffen Noleppa and Matti Cartsburg
HFFA Research GmbH
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HFFA Research Paper 03/2015
The agricultural trade
of the European Union
Consequences for virtual land trade
and self-sufficiency
Steffen Noleppa
Matti Cartsburg
agripol – network for policy advice GbR
Content
List of figures ............................................................................................................. iii
List of abbreviations ................................................................................................... iv
1 Introductory remarks .............................................................................................. 1
2 Trends of the EU’s virtual agricultural land trade ................................................ 2
3 Current agricultural self-sufficiency ratios of the EU ........................................... 9
4 Concluding remarks .............................................................................................. 16
Reference list ............................................................................................................. 17
Annex ......................................................................................................................... 21
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Acknowledgement
This research has been made possible, in part, by financial support from the Euro-
pean Crop Protection Association (ECPA). We particularly thank Euros Jones and
Claudia Michel from ECPA for valuable feedback throughout the entire study
phase. In addition, we gratefully acknowledge the opportunity to publish our report
as a research paper of HFFA Research GmbH. The results of this study are the sole
responsibility of the authors and have never been influenced by the supporter of
the study.
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List of figures
Figure 1: Total virtual agricultural land net imports of the European
Union, 2000-2014 (in million ha) ............................................................ 2
Figure 2: Virtual agricultural land trade of the European Union
for crops and livestock products, 2000-2014, net imports (+),
net exports (–) (in million ha).................................................................. 4
Figure 3: Net imports (+) and net exports (–) in virtual agricultural land
of the European Union by crop and livestock commodity,
on average for 2012-2014 (in million ha) ................................................ 7
Figure 4: Regional distribution of net virtual agricultural land trade
of the European Union, on average for 2012-2014
(in million ha) .......................................................................................... 8
Figure 5: Self-sufficiency ratio of the European Union for some
major agricultural commodities, on average for 2012-2014
(in percent) ............................................................................................. 10
Figure 6: Aggregated agricultural self-sufficiency of the European
Union in terms of grain units, 2012-2014 and on average
(in percent) ............................................................................................ 11
Figure 7: Self-sufficiency of the European Union in wheat and
sunflowers, 2012-2014 (in percent) ....................................................... 12
Figure 8: Agricultural self-sufficiency of the European Union
for important commodities in terms of carbohydrates,
proteins and fats, average for 2012-2014 (in percent) .......................... 13
Figure 9: Aggregated agricultural self-sufficiency of the European
Union in terms of carbohydrates, 2012-2014 and on average
(in percent) ............................................................................................. 14
Figure 10: Aggregated agricultural self-sufficiency of the European
Union in terms of proteins, 2012-2014 and on average
(in percent) ............................................................................................ 15
Figure 11: Aggregated agricultural self-sufficiency of the European
Union in terms of fats, 2012-2014 and on average
(in percent) ............................................................................................ 15
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List of abbreviations
CAP – Common Agricultural Policy
CETA – Comprehensive Economic and Trade Agreement
CIS – Commonwealth of Independent States
ECPA – European Crop Protection Association
EU – European Union
FAO – Food and Agriculture Organization
GU – Grain Unit
HFFA – Humboldt Forum for Food and Agriculture e.V.
HVO – Hydro-treated Vegetable Oil
IFPRI – International Food Policy Research Institute
MENA – Middle East and North Africa
SITC – Standard International Trade Classification
TTIP – Transatlantic Trade and Investment Partnership
TLL – Thüringer Landesanstalt für Landwirtschaft
UNEP – United Nations Environment Programme
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1 Introductory remarks
Discussing agricultural trade issues of the European Union (EU) is a continuous
process. Currently, the apparent opportunities and the mainly perceived risks of
the Transatlantic Trade and Investment Partnership (TTIP) between the EU and
the United States and the Comprehensive Economic and Trade Agreement (CETA)
between Canada and the EU are hotly debated. The authors of this paper have con-
tributed to this discussion by looking at agricultural trade issues from another
point of view. A new perspective was particularly opened by introducing the con-
cept of virtual agricultural land trade (von Witzke and Noleppa, 2010), an ap-
proach, which has gained more and more attention in scholarly research (see, e.g.,
Louwagie, 2013; Qiang et al., 2013), statistical analysis (see, e.g., Destatis, 2013a;
b) and public as well as policy debates (see, e.g., van den Bergh and Grazi, 2013;
WWF Germany, 2012; 2015). The approach originally developed in von Witzke and
Noleppa (2010), slightly amended in von Witzke et al. (2011) and peer-reviewed
published in Kern et al. (2012) as well as Lotze-Campen et al. (2015) is also used as
the reference system for arguing in peer-reviewed scientific papers (see Meier et
al., 2014) and policy reports (see UNEP, 2015).
In addition, the authors of this study aimed at developing and applying a method-
ology to continuously, i.e. annually, measure agricultural self-sufficiency of the EU,
because the discussion of various arguments surrounding the renewal of the old,
post-war-driven agricultural self-sufficiency debate (see, e.g., Bouet and Laborde,
2008; de Schutter, 2011) has led to the conclusion that reliable data on self-
sufficiency are lacking to build respective arguments upon verifiable information,
as, for instance, in Häusling (2011) who argues that the EU suffers from an im-
portant protein deficit amounting to approximately 70 percent.
Against this background, a multi-annual research project was launched in the year
2013 to continuously provide (a) most recent information on the virtual agricultural
land trade of the EU and (b) a meaningful set of self-sufficiency indicators, which
offer detailed but also highly aggregated and easily understandable information.
The initial findings of this project were published in Noleppa and Cartsburg (2013);
and with Noleppa and Cartsburg (2014), a first update of respective data and in-
formation was provided.
This paper shall be considered the next update. In the following, the revisited
trends of the EU’s virtual agricultural land trade since the turn of the millennium
will be highlighted (chapter 2). It follows a visualisation and interpretation of most
recent agricultural self-sufficiency figures for the EU (chapter 3). Some conclusions
will finally be drawn (chapter 4). A comprehensive annex will give additional and
more detailed information on selected issues constituting the methodological and
data base of the research findings displayed in the following.
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2 Trends of the EU’s virtual agricultural land trade
The following discussion is based on results obtained from applying the methodolo-
gy outline in annex A01 of this report. Accordingly trends of the EU’s virtual agri-
cultural land trade are analysed for every single year since the turn of the millen-
nium, and for each agricultural commodity or group of commodities.
Before analysing the development of the EU’s virtual agricultural land trade in
detail, i.e. by single crop and/or livestock, it is worth putting emphasis on the de-
velopment of the EU’s entire virtual agricultural land trade. Figure 1 visualises the
outcome.
Figure 1: Total virtual agricultural land net imports of the European
Union, 2000-2014 (in million ha)
Source: Own figure based on own calculations.
First, it becomes apparent that land trade figures – based on the methodology and
data set described in annex A01 – are somewhat lower than in previous years for
reasons to be discussed below. Nevertheless, the overall situation has not changed:
The EU was and still is a major net importer of virtual agricultural land at global
scale. Since the turn of the millennium, it was at no point a net exporter of virtual
agricultural land. Looking backwards, two remarkable aspects become obvious:
In the year 2000, net imports of virtual agricultural land of the EU were low-
er than 15 million ha but rose steadily until they peaked in the year 2007
with slightly over 31 million ha virtually imported. During this time, the EU
lost some competitiveness in major agricultural markets following a loss of
0
5
10
15
20
25
30
35
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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former protection, i.e. a further liberalisation of the Common Agricultural
Policy (CAP).
Since then, a rather steep decline had been witnessed leading to a virtual
agricultural land net import of slightly more than 14 million ha in the past
year. This is the lowest value since the turn of the millennium, but still more
than the entire arable land of Germany or the territory of Greece. Obviously,
EU farmers have been able to increase production in times of additional agri-
cultural demands and re-gained a lot of formerly lost competitiveness. This
was mainly achieved by increasing agricultural productivity and productivity
downstream the entire agricultural value chain.
However, only by going more into detail, it is possible to look behind this recent
development. First insights can be provided by splitting the graph depicted in fig-
ure 1 into two charts displaying the development of net virtual agricultural land
imports or exports based on the trade of crops and the trade of livestock products.
The result is visualised in figure 2.
Accordingly, the EU continues to be a large net importer of virtual agricultural
land that can be attributed to crops. The calculated values have ranged between 20
and 30 million ha since the year 2000. The highest net virtual import values were
reached in the years 2006 and 2007; during the last three years (2012 to 2014) ag-
ricultural land was net imported at roughly 20 million ha. This is still slightly more
than the initial virtual land trade value at the turn of the millennium (15.5 million
ha) and marks the need for further resource-saving productivity increases in EU
agriculture.
Behind this development are various more specific determinants. Looking at the
annexes A02 to A15, it becomes apparent that not only liberalisation effects of the
CAP reform, but also other drivers have been important. Major factors are as fol-
lows:
Taking the example of wheat (see annex A02), first, it becomes obvious that
the EU took responsibility during the food price crises in recent years, when
some of the major wheat exporting nations banned further exports, and con-
siderably enlarged own wheat production and, hence, exports to maintain
global food security and to profit from comparably high international com-
modity prices. Virtual wheat area exports have risen from 2 million ha to 8
million ha since the year 2007, already explaining half the development in
virtual crop area trade since that year. The importance of yields becomes ap-
parent: While the average EU wheat yield was around 5 tons per hectare in
the years 2006 and 2007, it has been approximately 10 percent higher in the
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most recent years covered in this report. In addition, the area cultivated with
wheat grew by 2 percent.
Using similar arguments, coarse grains contributed another million ha to the
improvement of our – still negative – virtual land trade balance during past
years (see annex A04). Barley yields today are also 10 percent higher.
Figure 2: Virtual agricultural land trade of the European Union for
crops and livestock products, 2000-2014, net imports (+), net
exports (–) (in million ha)
Source: Own figure based on own calculations.
0
10
20
30
40
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Crops
-4
-2
0
2
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Livestock
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Taking the year 2007 as a reference year, the development in virtual soya
area imports is astonishing, too. This virtually imported acreage dropped by
approximately 5 million ha (see annex A06). The reasons here, however, are
different. Behind this development are no remarkable compensation effects of
substituting soya for feed. In fact, it is – again – yield development, but this
time abroad, that contributed to an enhancement of our own EU virtual land
trade balance (according to FAO, 2015b, major export nations such as Argen-
tina, Brazil and the USA have increased soya yields between 10 and 20 per-
cent since 2007), on the one hand; and, on the other hand, it is a considerable
increase in EU net exports (i.e. a re-export of formerly virtually traded land)
which can be associated to exported vegetable oil separated from domestically
used soya meal after having crushed already imported soy beans in the EU.
In opposite to that, the agricultural land trade balance of the EU became
worse for some other commodities. Palm is a remarkable example (see annex
A07): Between 2000 and 2014, the EU almost tripled the amount of palm land
that was virtually net imported. This is most probably due to the large in-
crease in palm oil imports for bioenergy generation (and so called Hydro-
treated Vegetable Oil (HVO) production in the most recent tree years), hence
due to an emerging new demand. This accumulates to an extra virtual land
import of more than 1.0 million ha since the year 2007. Such an additional
demand might also be the reason for the worsening of the land trade balance
for oilseed rape by 2.0 million ha since 2007 (see annex A08).
Other crops show less obvious changes over time when it comes to assessing
virtual land trade of the EU. The situation is rather stable, for instance, in
the cases of coffee and cocoa (see annex A10) and other stimulants such as tea
and tobacco (see annex A11) as well as pulses (see annex A14).
The case of pulses is particularly interesting from another perspective, too.
Despite often politically announced protein deficits and needs for increasing
quantities of supplied pulses (see, e.g. Häusling, 2011), the EU market actors
obviously still refused to take action. Apparently, market framework condi-
tions offer more efficient solutions to cope with challenges than policy may
advice.
Finally, a note on sugar crops (see annex A15), which tend to become more
and more important with respect to their contribution to the EU’s virtual net
land imports, most likely as an effect of policy activities in most recent years
towards more liberalised sugar markets. In the last years, the additional
acreage used abroad rose by almost 1.0 million ha.
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The virtual land trade of livestock products is as diverse as the crops-related land
trade of the EU. However, here the EU is in a net export position. This becomes
obvious by looking at figure 2 and the annexes A16 to A21. Around the turn of the
millennium, the EU was already a net exporter of virtual agricultural land devoted
to livestock products (see the negative prefix in figure 2). However, between the
years 2003 and 2007 the EU turned into a net importer of livestock-related land.
Close to 2 million ha were net imported as a virtual input in livestock products.
Since then, the situation changed again leaving the EU to be a net exporter of vir-
tual agricultural land for livestock products ever since 2009. In the year 2014, vir-
tual land exports of approximately 3.3 million ha were realised. Major contributors
to that were:
Beef with 2.0 million ha (see annex A16) and the other meat markets together
contributing an additional 2.0 million ha to the improvement of the EU’s vir-
tual land trade position, but also
Dairy products (see annex A21) adding another 0.5 million ha (especially in
most recent years).
Obviously, the EU livestock sector was able to increase its competitiveness or im-
prove its land use productivity. Indeed, entrepreneurial EU agriculture seems to
have been able to re-gain a substantial part of the competitiveness it apparently
lost around the turn of the millennium when the EU agricultural markets were
confronted with a more liberalised CAP of the EU leading to a considerable loss of
market protection.
Looking not only at the long-term trends, but additionally analysing the net im-
ports and exports of virtual agricultural land by crop and livestock category more
particularly for the most recent years, i.e. 2012-2014 (or what we consider: the sta-
tus quo), leads to even more insights. As becomes clear by looking at figure 3, the
current situation is rather complex. While the EU in total virtually net imports
roughly 17.5 million ha (last update: 18.6 million ha), there are big differences in
the trade balance for individual crops and livestock groups:
As in previous analyses, oilseed crops as well as coffee and cocoa products still
facilitate the vast majority of net virtual land imports into the EU. The, by
far, most important driver of virtual land imports is again soya with 13.1 mil-
lion ha (last update: 13.4 million ha), followed by coffee and cocoa with 5.7
million ha (last update: 5.9 million ha), oilseed rape with 2.6 million ha (last
update: 2.7 million ha), palm with 2.3 million ha (last update: 1.8 million ha)
and other oilseeds with almost 3.4 million ha (last update: 3.3 million ha).
Net virtual land imports of corn with 1.1 million ha (last update: 1.0 million
Noleppa, S.; Cartsburg, M. | EU agricultural trade: Consequences for virtual land trade and self-sufficiency 7
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ha) and rice with 0.5 million ha (last update: also 0.5 million ha) still play a
comparably minor role, herein.
Accordingly, net virtual exports of agricultural land are dominated by wheat
with 6.3 million ha (last update: 5.2 million ha) and coarse grains with 3.4
million ha (last update: 3.1 million ha) as well as livestock products, especial-
ly pork with 2.4 million ha (last update: also around 2.4 million ha), dairy
products with 0.7 million ha (last update: 0.5 million ha) and poultry with 0.5
million ha (last update: 0.4 million ha).
A closer look at the world regions affected most by the current virtual agricultural
land trade of the EU is finally provided with figure 4.
Figure 3: Net imports (+) and net exports (–) in virtual agricultural land
of the European Union by crop and livestock commodity,
on average for 2012-2014 (in million ha)
Source: Own figure based on own calculations.
-10 -5 0 5 10 15 20
Wheat
Corn
Coarse Grains
Rice
Soya
Palm
Oilseed Rape
Other Oilseeds
Coffee and Cocoa
Tea and Tobacco
Fruits
Vegetables and Potatoes
Pulses
Sugar Crops
Beef
Sheep and Goat meat
Pork
Poultry
Eggs
Dairy
Cotton
Total
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Figure 4: Regional distribution of net virtual agricultural land trade
of the European Union, on average for 2012-2014 (in million ha)
North America Asia Africa CIS
3.004 0.946 1.747 3.901
South America MENA Countries Rest of Europe Rest of the World
14.825 –7.481 –2.239 2.827
Source: Own figure based on own calculations.
The region affected most by virtual net agricultural land imports of the EU is – as
in previous analyses – South America. Over 14.8 million ha (last update: 14.3 mil-
lion ha) of agricultural area in that region are virtually occupied by the EU. The
vast majority of this imported area certainly comes from soya (10.6 million ha),
followed by coffee and cocoa (1.5 million ha). The most important regions in which
virtual agricultural land from the EU is net exported are the Middle East and
North Africa (MENA) regions with 7.5 million ha (last update: 6.4 million ha). The
majority of virtual land being exported to the MENA region is devoted to wheat
(4.4 million ha) and coarse grains (1.5 million ha). Such regional and crop-specific
figures are summarised with annex A22.
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3 Current agricultural self-sufficiency ratios of the EU
Methodological particularities leading to the results discussed in the following can
be obtained from annex A23 of this report. Accordingly, figure 5 visualises the self-
sufficiency ratio of the EU for major agricultural commodities using average values
for the years 2012-2014.
Looking at the graphs displayed, it becomes apparent that the EU is currently able
to produce more agricultural raw materials and marketed products thereof than
necessary for domestic consumption of some major crops and livestock. The self-
sufficiency surplus, e.g. in wheat is 17 percent, and it is 7 percent in potatoes; in
pork it is 14 percent, and in eggs and milk full self-sufficiency is exceeded by 2 re-
spectively 7 percent.
However, it is obvious, too, that with respect to other crops and livestock products
the EU is, partially by far, not self-sufficient. The deficit in self-sufficiency is par-
ticularly large in some fruits, such as bananas – the self-sufficiency ratio here is
only 12 percent –, but also in major oilseed crops and some protein crops.
This becomes even more obvious by looking at annex A24 to the report. The annex
depicts all the crop-specific and livestock-specific self-sufficiency ratios covered by
this analysis not only for the average of the years 2012 to 2014, but annually. By
and large, it turns out that latest findings (see Noleppa and Cartsburg, 2014) can
be confirmed: Agricultural self-sufficiency in the EU is very diverse indicating that
EU member states are well integrated into world markets exporting various com-
modities for which the EU obviously has a comparative advantage in exchange to
importing other products which should be produced more efficiently abroad.
Using now ‘grain units’ (GU) (see also the methodological considerations in annex
A23) as a means to sum up product-specific self-sufficiency ratios to a single figure
indicating overall agricultural self-sufficiency for the EU as a whole enables to argue
on a different, but more general level. Against this background, the following fig-
ure 6 describes to what extent the EU has been self-sufficient from an aggregated
nutritional point of view in the past three years and on average for the years 2012
to 2014.
It turns out that – on aggregate – the EU is not self-sufficient in terms of all the
nutrients normally locked in agricultural products and principally available for
different usages: The respective self-sufficiency ratio is only 88.9 percent on aver-
age for the years 2012 to 2014. However, there seems to be a tendency to improve
agricultural self-sufficiency a bit. It has been 88.2 percent in 2012 and 89.1 percent
in 2013; according to latest figures, agricultural self-sufficiency of the EU reached
89.4 percent in 2014.
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Figure 5: Self-sufficiency ratio of the European Union for some major
agricultural commodities, on average for 2012-2014 (in percent)
Source: Own figure based on own calculations.
0
20
40
60
80
100
120
Wheat Corn
0
20
40
60
80
100
120
Oilseed Rape Soya
0
20
40
60
80
100
120
Sugar (Raw) Potatoes
0
20
40
60
80
100
120
Beans Peas
0
20
40
60
80
100
120
Apples Bananas
90
95
100
105
110
115
120
Tomatoes Cucumbers
90
95
100
105
110
115
120
Beef Pork
90
95
100
105
110
115
120
Eggs Milk
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Figure 6: Aggregated agricultural self-sufficiency of the European
Union in terms of grain units, 2012-2014 and on average
(in percent)
Source: Own figure based on own calculations.
Distinguishing crop products from livestock products gives additional insights:
Although in total not self-sufficient, the EU is self-sufficient in livestock
products; the average surplus in terms of GU (not visualised in figure 6) is
around 7 percent.
On the opposite, the EU’s self-sufficiency deficit is – as in previous years –
quite large in crop products and amounts to 14 percent, i.e. the self-
sufficiency ratio is about 86 percent for the average of the years 2012 to 2014.
The yearly ratios here were 85.0 percent (in 2012), 86.2 percent (in 2013) and
86.5 percent (in 2014). Accordingly, a slow improvement can be observed
which surely has been supported by overall agricultural productivity growth
in the EU.
Fluctuations are obvious, especially in crop production, and become apparent when
looking at single commodities, as in figure 7 which displays, on an exemplified
base, ups and downs with respect to wheat and sunflowers, two major agricultural
commodities domestically produced at a rather large scale.
87
88
89
90
2012 2013 2014
Average
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Figure 7: Self-sufficiency of the European Union in wheat and
sunflowers, 2012-2014 (in percent)
Source: Own figure based on own calculations.
An extraordinarily good harvest for both crops in 2013 (compared to 2012) led to a
considerable increase in the EU’s crop-specific self-sufficiency ratio for the year
2013 (compared to 2012): It rose for wheat from 109 percent to 119 percent and for
sunflowers from 54 percent to 74 percent. In the year 2014, the self-sufficiency in
wheat further increased (to 123 percent), whereas self-sufficiency in sunflowers
decreased (to 70 percent). This highlights the dependency of crop production on
natural framework conditions (such as weather), but also the overall importance of
crop productivity (growth) for improving the overall agricultural performance and
development in the EU.
In opposite to that, self-sufficiency ratios for livestock products are rather stable as
annex A24 displays. Here, ad-hoc disturbances such as weather conditions influ-
encing feed availability and overall livestock performance certainly play a minor
role.
Figure 8, now, depicts average self-sufficiency ratios for specific nutritional ingre-
dients, namely carbohydrates, proteins and fats (or vegetable oils). By and large,
the argument discussed with respect to the general nutritional value (based on GU)
does not change. The EU is self-sufficient in the provision of carbohydrates, pro-
teins and fats borne by livestock products, and not self-sufficient when these com-
ponents have to come from crops and products thereof.
0
30
60
90
120
150
2012 2013 2014
Wheat Sunflowers
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Figure 8: Agricultural self-sufficiency of the European Union
for important commodities in terms of carbohydrates,
proteins and fats, average for 2012-2014 (in percent)
Commodity Group Carbohydrates Proteins Fats
Cereals 107 109 104
Oilseeds 80 73 83
Roots 106 107 106
Sugar Crops 82 82 82
Pulses 89 90 85
Vegetables 105 104 105
Fruits 79 79 72
Total, Crops 90 83 84
Meat 111 109 111
Eggs 102 102 102
Milk 107 107 107
Total, Livestock 109 108 109
Total 92 85 87
Source: Own figure based on own calculations.
Interesting are differences between carbohydrates, proteins and fats originating
from crops and livestock, respectively:
More particularly, a carbohydrate surplus provided in livestock production of
around 9 percent is overcompensated by an “energy” deficiency occurring in
crop production of approximately 10 percent.
Even more pronounced is the difference in the EU’s agricultural self-
sufficiency in terms of proteins. Although more animal protein is available
from domestic production than actually needed (plus 8 percent), the total pro-
tein balance is negative because the EU suffers from a protein deficiency in
crop production accumulating to around 17 percent. However, this deficit is –
by far – less than what has been argued in, e.g., Häusling (2011) or public de-
bate.
Looking finally at the vegetable oil content of crops, the EU also envisages a
high deficit (16 percent). In opposite to that the EU is still self-sufficient in
animal fats. The surplus here amounts to 9 percent. However, it does not
compensate the deficit in crop production.
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Based on figure 8 and the following three figures 9 to 11 depicting the EU’s self-
sufficiency picture for single nutrients, a few final but important facts shall be
highlighted:
The average agricultural self-sufficiency for the years 2012 to 2014 is the big-
gest with respect to carbohydrates, but reaching not more than 91.6 percent
(see figure 9).
It is lowest in proteins and sums up, here, to approximately 85.1 percent (see
figure 10).
For fats, the agricultural self-sufficiency of the EU is in between and slightly
below 87 percent (see figure 11).
All in all, it turns out that the EU is not self-sufficient in all three basic nutrients.
However, the nutrient-specific situation has improved in past years. All three com-
ponents – carbohydrates, proteins and fats (vegetable oils) – show an upward
trend, as figures 9 to 11 visualise. Again, the particular importance productivity
growth plays for such a development shall be highlighted.
Figure 9: Aggregated agricultural self-sufficiency of the European Union
in terms of carbohydrates, 2012-2014 and on average (in percent)
Source: Own figure based on own calculations.
90
91
92
93
2012 2013 2014
Average
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Figure 10: Aggregated agricultural self-sufficiency of the European Union
in terms of proteins, 2012-2014 and on average (in percent)
Source: Own figure based on own calculations.
Figure 11: Aggregated agricultural self-sufficiency of the European Union
in terms of fats, 2012-2014 and on average (in percent)
Source: Own figure based on own calculations.
83
84
85
86
87
2012 2013 2014
Average
85
86
87
88
2012 2013 2014
Average
16 Noleppa, S.; Cartsburg, M. | EU agricultural trade: Consequences for virtual land trade and self-sufficiency
HFFA Research Paper 03/2015
4 Concluding remarks
This research paper highlights that the EU is currently net importing a still re-
markable amount of virtual agricultural land – almost 18 million ha on average for
the years 2012 to 2014. However, the amount of land virtually imported has de-
creased since the year 2007. That the EU is using today fewer agricultural re-
sources abroad than in past years can also be seen by looking at most recent agri-
cultural self-sufficiency indicators. Although still below 100 percent – thus indicat-
ing an overall higher import than export of crop and livestock commodities and
products thereof – agricultural self-sufficiency has slightly improved over time be-
ing currently at around 89 percent, if measured in terms of GU.
These foremost positive developments can largely be associated with an increasing
agricultural productivity in the EU, but also abroad. Hence, it becomes apparent
that investing into and allowing for additional productivity growth is beneficial not
only to agricultural producers and traders as well as food and other consumers, but
for the environment and, therefore, the society at large.
On the one hand, future agricultural productivity growth not only but especially in
the EU is deeply needed in order to meet the continuously increasing demand for
food, feed, fibre, and fuel; and this requires a multidisciplinary approach driven by
science, technology and innovation. On the other hand, the necessary agricultural
productivity increases are endangered. The public perception of productivity-
oriented agriculture often displays a remarkable indifference and even outright
scepticism relative to such modern farming practices, and policy debates mirror
this perception. Recent discussions on the enforcement of various EU regulations,
e.g., have pointed at additional administrative burdens and entrepreneurial costs
for input suppliers and at the farm level.
This may jeopardise a continuous flow of resources into research and development
aiming at further productivity increases in EU agriculture. Reluctance of small-
and medium-scale enterprises and also large input suppliers towards investing into
research and development for, e.g., new and better crop protection products, im-
proved plant varieties and/or novel nutritional options may increase due to associ-
ated uncertainties and real costs which cannot be easily borne. Hence, a slowing
down of the productivity progress might be the result.
If the EU not only wants to improve its real and virtual agricultural trade balances
but to pay its fair share and a remarkable contribution towards better conditions
for world food security and global resource protection, it should attract innovation
instead of hampering it.
Noleppa, S.; Cartsburg, M. | EU agricultural trade: Consequences for virtual land trade and self-sufficiency 17
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Noleppa, S.; Cartsburg, M. | EU agricultural trade: Consequences for virtual land trade and self-sufficiency 21
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Annex
Annex A01: Methodological remarks on the calculation of the
virtual agricultural land trade of the EU ........................................... 23
Annex A02: Virtual agricultural land trade of the European Union
for wheat and products thereof, 2000-2014, net imports (+),
net exports (–), (in million ha) ............................................................ 25
Annex A03: Virtual agricultural land trade of the European Union
for corn and products thereof, 2000-2014, net imports (+),
net exports (–), (in million ha) ............................................................ 25
Annex A04: Virtual agricultural land trade of the European Union
for coarse grains and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha) .................................. 26
Annex A05: Virtual agricultural land trade of the European Union
for rice and products thereof, 2000-2014, net imports (+),
net exports (–), (in million ha) ............................................................ 26
Annex A06: Virtual agricultural land trade of the European Union
for soya and products thereof, 2000-2014, net imports (+),
net exports (–), (in million ha) ............................................................ 27
Annex A07: Virtual agricultural land trade of the European Union
for palm and products thereof, 2000-2014, net imports (+), net
exports (–), (in million ha)................................................................... 27
Annex A08: Virtual agricultural land trade of the European Union
for oilseed rape and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha) .................................. 28
Annex A09: Virtual agricultural land trade of the European Union
for other oilseeds and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha) .................................. 28
Annex A10: Virtual agricultural land trade of the European Union
for coffee and cocoa and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha) .................................. 29
Annex A11: Virtual agricultural land trade of the European Union
for tea and tobacco and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha) .................................. 29
Annex A12: Virtual agricultural land trade of the European Union
for fruits and products thereof, 2000-2014, net imports (+), net
exports (–), (in million ha)................................................................... 30
22 Noleppa, S.; Cartsburg, M. | EU agricultural trade: Consequences for virtual land trade and self-sufficiency
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Annex A13: Virtual agricultural land trade of the European Union
for vegetables and potatoes and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha) .................................. 30
Annex A14: Virtual agricultural land trade of the European Union
for pulses and products thereof, 2000-2014, net imports (+),
net exports (–), (in million ha) ............................................................ 31
Annex A15: Virtual agricultural land trade of the European Union
for sugar crops and products thereof, 2000-2014, net imports (+),
net exports (–), (in million ha) ............................................................ 31
Annex A16: Virtual agricultural land trade of the European Union
for beef and products thereof, 2000-2014, net imports (+),
net exports (–), (in million ha) ............................................................ 32
Annex A17: Virtual agricultural land trade of the European Union
for sheep and goat meat and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha) .................................. 32
Annex A18: Virtual agricultural land trade of the European Union
for pork and products thereof, 2000-2014, net imports (+),
net exports (–), (in million ha) ............................................................ 33
Annex A19: Virtual agricultural land trade of the European Union
for poultry and products thereof, 2000-2014, net imports (+),
net exports (–), (in million ha) ............................................................ 33
Annex A20: Virtual agricultural land trade of the European Union
for eggs and products thereof, 2000-2014, net imports (+),
net exports (–), (in million ha) ............................................................ 34
Annex A21: Virtual agricultural land trade of the European Union
for milk and products thereof, 2000-2014, net imports (+),
net exports (–), (in million ha) ............................................................ 34
Annex A22: Virtual agricultural land trade of the European Union,
net imports (+), net exports (–), by region and commodity and
as an average of the years 2012-2014, (in million ha) ........................ 35
Annex A23: Methodological remarks on the calculation of the agricultural
self-sufficiency of the EU .................................................................... 36
Annex A24: Specific self-sufficiency ratios of agricultural commodities
for the European Union in recent years and on average
(in percent) .......................................................................................... 40
Noleppa, S.; Cartsburg, M. | EU agricultural trade: Consequences for virtual land trade and self-sufficiency 23
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Annex A01: Methodological remarks on the calculation of the virtual
agricultural land trade of the EU
The virtual agricultural land trade approach used here is based on the concept of
virtual inputs initially developed by Allan (1993; 1994) for water. The basic idea is
as follows: Any good being produced requires inputs. The inputs used in the pro-
duction of a good are then considered a virtual part of this good. Hence, when a
good is traded internationally the virtual input is traded simultaneously (see also
Mekonnen and Hoekstra, 2011; Hoekstra, 2003; Hoekstra and Hung, 2002).
Here, this concept is modified so it can be applied to the input ‘land’ in agricultural
commodity production. By analogy, we define virtual land as the amount of land
that is required to produce one unit of a given agricultural good. For instance, if it
takes ‘X’ ha of land to produce one metric ton of wheat, the ‘X’ is the number of ha
of virtual land contained in one metric ton of wheat. Exporting (importing) one
metric ton of wheat from one country to another is then equivalent to the export
(import) of ‘X’ ha of virtual land. In essence, the import of agricultural goods adds
land to the domestic resource base, while the export acts to reduce it.
An essential to calculate meaningful virtual land trade figures is therefore reliable
and up-to-date foreign trade statistics. Looking at the EU, data of Eurostat have
been proven to be consistent in this respect. Eurostat (2015b) data have now been
used to analyse the EU’s virtual agricultural land trade.
Point of departure for the particular analysis are international agricultural trade
volume flows, i.e. export and import tonnages, which are based on an international-
ly agreed classification of commodities and are available for each trading partner of
the EU. In particular, the Standard International Trade Classification (SITC), one
of the most widely used classification systems in international trade analysis, is
used hereafter. The SITC categories distinguish various degrees of processing,
meaning that goods from identical raw materials (e.g. wheat) may end up in differ-
ent classifications (e.g. wheat flour, feed preparations, pasta, etc.). However, they
can also be always attributed to their raw material again.
In this analysis of international agricultural trade not only suitable categories of
SITC 0 (Food and live animals) and SITC 1 (Beverages and tobacco) are included
but additionally numerous categories of SITC 22 (Oilseeds and oleaginous fruits),
SITC 263 (Cotton) and SITC 4 (Animal and vegetable oils, fats and waxes). In total,
almost 300 different SITC categories of tradable agricultural commodities and prod-
ucts thereof are included in the analysis. For all these SITC categories, export and
import data in terms of volume (i.e. tons) were generated from Eurostat (2015b) for
the EU and for the years 2000 to 2014.
24 Noleppa, S.; Cartsburg, M. | EU agricultural trade: Consequences for virtual land trade and self-sufficiency
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The conversion of agricultural trade data into land trade information requires the
application of a rather complex methodology and several intermediate steps to be
performed for each SITC category:
First, it is essential to re-convert traded agricultural goods back into their
respective raw material using consistent technical parameters and suitable
conversion factors.
Looking particularly at agricultural raw materials that can be processed into
more than one good to be categorised into different SITC numbers – this is,
e.g., the case with oilseeds, which are usually processed into oil and cake, or
dairy products, namely butter, cheese and milk – a potential double counting
of hectares has to be avoided, too. FAO (2012) data allow to do so.
The resulting trade volumes (in terms of agricultural raw products) have then
to be related to annual regional yields. The respective information is now
taken from FAO (2015b) and allows to compute region-specified land used for
exports or imports.
Finally, it is necessary to calculate the net imports respectively net exports
for every single SITC category, therefore for every internationally traded ag-
ricultural commodity, and for each trading partner of the EU.
Using this gradual approach of SITC by SITC category, it is possible to sort the
traded agricultural goods into 57 different crop and livestock groups of agricultural
raw materials. These 57 groups can pragmatically be concentrated into altogether
21 groups of primary crops and livestock, which will be used here for proper analy-
sis. This includes (see also annexes A02 to A21):
Wheat, corn, coarse grains, rice, soya, palm, oilseed rape, other oilseeds, cof-
fee and cocoa, tea and tobacco, fruits, vegetables and potatoes, pulses, sugar
crops, and cotton as well as
Beef, sheep and goat meat, pork, poultry, eggs and milk.
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Annex A02: Virtual agricultural land trade of the European Union for
wheat and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
Annex A03: Virtual agricultural land trade of the European Union for
corn and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
-10
-8
-6
-4
-2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
-2
0
2
4
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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Annex A04: Virtual agricultural land trade of the European Union for
coarse grains and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
Annex A05: Virtual agricultural land trade of the European Union for
rice and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
-8
-6
-4
-2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0.0
0.1
0.2
0.3
0.4
0.5
0.6
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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Annex A06: Virtual agricultural land trade of the European Union for
soya and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
Annex A07: Virtual agricultural land trade of the European Union for
palm and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
0
4
8
12
16
20
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
1
2
3
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
28 Noleppa, S.; Cartsburg, M. | EU agricultural trade: Consequences for virtual land trade and self-sufficiency
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Annex A08: Virtual agricultural land trade of the European Union for
oilseed rape and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
Annex A09: Virtual agricultural land trade of the European Union for
other oilseeds and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
-1
0
1
2
3
4
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
2
4
6
8
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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Annex A10: Virtual agricultural land trade of the European Union for
coffee and cocoa and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
Annex A11: Virtual agricultural land trade of the European Union for
tea and tobacco and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
0
2
4
6
8
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0.0
0.1
0.2
0.3
0.4
0.5
0.6
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
30 Noleppa, S.; Cartsburg, M. | EU agricultural trade: Consequences for virtual land trade and self-sufficiency
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Annex A12: Virtual agricultural land trade of the European Union for
fruits and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
Annex A13: Virtual agricultural land trade of the European Union for
vegetables and potatoes and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
-0.8
-0.4
0.0
0.4
0.8
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
-2
-1
0
1
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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Annex A14: Virtual agricultural land trade of the European Union for
pulses and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
Annex A15: Virtual agricultural land trade of the European Union for
sugar crops and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
0.0
0.2
0.4
0.6
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
-1.0
-0.5
0.0
0.5
1.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
32 Noleppa, S.; Cartsburg, M. | EU agricultural trade: Consequences for virtual land trade and self-sufficiency
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Annex A16: Virtual agricultural land trade of the European Union for
beef and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
Annex A17: Virtual agricultural land trade of the European Union for
sheep and goat meat and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
-1
0
1
2
3
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0.0
0.5
1.0
1.5
2.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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Annex A18: Virtual agricultural land trade of the European Union for
pork and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
Annex A19: Virtual agricultural land trade of the European Union for
poultry and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
-3
-2
-1
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
-1.0
-0.5
0.0
0.5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
34 Noleppa, S.; Cartsburg, M. | EU agricultural trade: Consequences for virtual land trade and self-sufficiency
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Annex A20: Virtual agricultural land trade of the European Union for
eggs and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
Annex A21: Virtual agricultural land trade of the European Union for
milk and products thereof, 2000-2014,
net imports (+), net exports (–), (in million ha)
Source: Own figure based on own calculations.
-1.0
-0.5
0.0
0.5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
-1.0
-0.5
0.0
0.5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
HFFA ResearchPaper 03/2015
Annex A22: Virtual agricultural land trade of the European Union, net imports (+), net exports (–), by region
and commodity and as an average of the years 2012-2014, (in million ha)
Wh
ea
t
Co
rn
Co
arse
Gra
ins
Ric
e
So
ya
Pa
lm
Oil
se
ed
Ra
pe
Oth
er
Oil
se
ed
s
Co
ffee a
nd
Co
co
a
Te
a a
nd
To
ba
cco
Fru
its
Veg
eta
ble
s
an
d P
ota
toes
Pu
lse
s
Su
ga
r C
ro
ps
Beef
Sh
eep
an
d
Go
at
Me
at
Po
rk
Po
ult
ry
Eg
gs
Da
iry
Co
tto
n
To
tal
North America 0.418 0.082 -0.384 0.005 2.228 0.062 0.076 0.214 0.082 0.033 -0.079 -0.315 0.161 0.169 0.112 0.000 -0.086 -0.004 0.002 -0.044 0.273 3.004
USA 0.180 0.029 -0.232 0.006 1.770 0.000 0.003 0.052 -0.338 0.030 -0.069 -0.181 0.057 0.012 0.116 0.000 -0.059 0.000 0.002 -0.012 0.222 1.589
Canada 0.346 0.058 -0.010 -0.001 0.461 0.000 0.076 0.138 -0.069 -0.003 -0.108 -0.076 0.094 0.000 0.004 0.001 -0.009 -0.001 0.000 -0.001 0.030 0.928
South America 0.055 0.313 -0.089 0.054 10.568 0.073 0.049 0.046 1.501 0.144 0.562 -0.203 0.043 0.098 1.222 0.036 0.002 0.330 0.000 -0.006 0.028 14.825
Brazil 0.052 0.237 -0.067 0.009 5.587 0.019 0.000 0.031 0.606 0.122 0.195 -0.171 0.000 0.065 0.700 0.000 0.000 0.302 0.000 -0.001 0.021 7.706
Argentina 0.000 0.053 0.025 0.005 3.674 0.000 0.046 0.000 -0.006 0.019 0.068 0.004 0.038 0.002 0.248 0.007 -0.001 0.010 0.000 0.000 0.006 4.198
Asia -1.146 -0.188 -0.475 0.478 0.474 1.955 -0.159 1.425 0.757 0.102 -0.149 -0.320 0.009 0.159 -0.180 -0.049 -1.557 0.036 -0.009 -0.210 -0.010 0.946
China -0.008 -0.016 -0.070 0.000 0.075 0.000 -0.084 0.046 0.018 0.057 -0.041 -0.021 0.010 0.000 -0.022 -0.001 -0.618 0.013 0.000 -0.059 -0.015 -0.737
India 0.000 -0.001 0.015 0.229 0.398 0.001 -0.062 0.450 0.161 0.070 0.010 -0.034 -0.003 0.136 0.000 0.000 0.000 0.000 0.000 -0.007 0.226 1.590
Japan -0.005 -0.059 -0.150 0.000 0.001 0.000 -0.002 -0.007 -0.056 -0.046 -0.085 -0.137 0.000 0.000 -0.001 0.000 -0.244 -0.004 -0.002 -0.009 -0.006 -0.812
MENA region -4.380 -0.300 -1.502 -0.002 -0.395 0.000 -0.156 -0.090 -0.247 -0.090 -0.008 0.904 -0.033 -0.029 -0.230 -0.095 -0.008 -0.190 -0.011 -0.243 -0.375 -7.481
Africa -1.524 -0.229 -0.378 -0.005 -0.323 0.100 -0.004 -0.030 4.314 0.300 0.082 -0.145 0.012 0.129 -0.175 -0.015 -0.155 -0.441 -0.013 -0.107 0.353 1.747
GUS 0.428 1.390 -0.148 0.000 0.640 -0.031 1.436 2.058 -0.381 -0.092 -0.440 -0.145 0.048 0.115 -0.302 -0.001 -0.444 -0.153 -0.016 -0.054 -0.008 3.901
Russia 0.153 0.147 -0.138 0.001 0.151 -0.030 0.430 0.300 -0.229 -0.061 -0.410 -0.103 0.030 0.055 -0.244 0.000 -0.292 -0.062 -0.014 -0.037 -0.001 -0.355
Developed Pacifics 0.059 -0.004 -0.045 -0.001 0.000 0.000 1.619 -0.005 -0.077 -0.002 0.162 -0.069 0.003 0.029 0.203 0.777 -0.069 0.000 0.000 0.006 0.000 2.587
Rest of Europe -0.219 0.075 -0.348 -0.035 -0.048 -0.012 -0.217 -0.285 -0.264 -0.044 -0.178 -0.075 -0.003 0.029 -0.355 -0.003 -0.115 -0.090 -0.020 -0.013 -0.020 -2.239
Switzerland -0.039 -0.015 -0.060 -0.008 -0.035 -0.003 -0.023 -0.029 0.013 0.004 -0.158 -0.042 -0.003 -0.005 -0.036 -0.006 0.015 -0.018 -0.017 0.012 -0.002 -0.454
Norway -0.067 -0.024 -0.101 -0.003 0.093 -0.001 -0.144 -0.026 -0.061 -0.005 -0.091 -0.013 -0.011 -0.013 -0.028 -0.005 -0.002 -0.001 0.000 0.000 -0.001 -0.504
Turkey -0.080 -0.030 -0.113 -0.014 -0.070 0.000 -0.042 -0.167 -0.086 -0.044 0.135 0.029 0.015 0.000 -0.089 -0.004 -0.001 -0.001 0.000 -0.001 -0.012 -0.576
Rest of the World -0.003 0.000 -0.003 0.000 0.000 0.194 0.000 0.022 0.040 0.000 -0.001 -0.002 0.000 0.000 -0.002 0.000 -0.003 -0.001 0.000 -0.001 0.000 0.240
Total -6.311 1.140 -3.372 0.494 13.142 2.341 2.644 3.355 5.725 0.352 -0.049 -0.370 0.241 0.699 0.293 0.651 -2.434 -0.513 -0.067 -0.672 0.241 17.530
Source: Own figure based on own calculations.
36 Noleppa, S.; Cartsburg, M. | EU agricultural trade: Consequences for virtual land trade and self-sufficiency
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Annex A23: Methodological remarks on the calculation of the agricultural
self-sufficiency of the EU
Basically, data on the production and/or the consumption of agricultural commodi-
ties, i.e. food, feed, fuel, and fibre products, allow for a calculation of the agricul-
tural self-sufficiency, but only if additional information on net foreign trade, i.e.
export and import flow balances, of crop and livestock specific commodities is
available. This is necessarily so, because – using a common definition of the Inter-
national Food Policy Research Institute (IFPRI) (see, e.g., Peljor and Minot, 2010) –
self-sufficiency is defined as being able to meet consumption needs from own pro-
duction rather than by (net) importing. Hence, agricultural self-sufficiency is de-
fined as a ratio.
For any agricultural commodity (respectively food, feed, fuel or fibre products
thereof) equation (1) applies:
(1) SSREU = PREU / (PREU – NTEU)
with: SSREU – self-sufficiency ratio of the EU,
PREU – domestic production of the EU, and
NTEU – net trade of the EU.
Within this rather simple accounting framework, the net trade is defined as the
difference of exports and imports. Accordingly, domestic consumption is equal to
domestic production minus net trade, and positive values for NTEU indicate a net
export situation, whereas negative values for NTEU indicate a net import situation.
According to equation (1), the self-sufficiency ratio is without any dimension (i.e.
without any unit); instead it can be measured in terms of percentages: A SSREU
value of 1.10, e.g., indicates a self-sufficiency ratio of 110 percent leading to the
conclusion that domestic production in the EU is 10 percent higher than domestic
consumption (and the net trade balance is positive, i.e. the EU exports more than it
imports). Consequently, a SSREU value of 0.80, e.g., indicates a self-sufficiency ratio
of 80 percent and points to the fact that domestic production is 20 percent lower
than domestic consumption (and the net trade balance is negative, i.e. the EU im-
ports more than it exports). Based on scientifically accepted conversion factors, it is
then possible to calculate a meaningful but aggregated agricultural self-sufficiency
indicator for the EU, respectively a set of such indicators.
Initial basis to do so is the definition of a ‘grain unit’ (see, e.g., Schulze-Mönking
and Klapp, 2010; TLL, 2013). The ‘grain unit’ (in the following: GU) is an indicator
for the aggregated nutritional value of a particular agricultural product. By (histor-
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HFFA Research Paper 03/2015
ic) definition (see Woermann, 1944), a GU is equivalent to the aggregated nutri-
tional value of 100 kg of barley. The initial values given by Woermann (1944) have
been updated on a regular base to meet genetic progresses, technological improve-
ments, etc. Nowadays all agricultural products and commodities thereof are com-
pared to 100 kg of barley using GU data mainly provided by Schulze-Mönking and
Klapp (2010) and TLL (2013). Accordingly, 100 kg of wheat, e.g., are set equal to
1.07 GU; 100 kg of soybeans are then defined as 2.60 GU; 100 kg of cow milk can
thus be valued at 0.86 GU (being the amount of feed to produce the respective
amount of milk); and 100 kg of beef (veal) are considered to be equal to 5.90 (4.10)
GU, etc.
Simply weighting EU production and EU net trade volumes of individual agricul-
tural products (see equation (1) above) with respective product-specific GU-values
allows for an aggregation and the discussion of an aggregated self-sufficiency ratio
(across all – crop and livestock – commodities) for the EU as a whole.
In addition, another indicator (set) shall be used to accentuate the discussion of the
EU’s agricultural self-sufficiency. Technical conversion factors recently provided by
FAO (2012) and specific nutritional values delivered with FAO (2015a) allow for
the calculation of aggregated self-sufficiency indicators not only in terms of the
aggregated nutritional value of the product, but also and even more detailed in
terms of specific nutritional components of it, i.e. the carbohydrates, proteins
and/or fats an agricultural commodity, be it a crop or livestock product, consists of.
Again, using proper algebraic weighting procedures with carbohydrate, protein and
fat concentrations as weighting factors allows for an aggregation of crop-specific
and livestock-specific production and trade volumes. Hence, the following set of
self-sufficiency indicators can be calculated and discussed on the basis of equation
(1):
SSREU, A non-aggregatable EU self-sufficiency ratio for commodity A,
SSRGUEU, A aggregatable EU ‘grain units’ self-sufficiency ratio for commodity A,
SSRCAEU, A aggregatable EU carbohydrates self-sufficiency ratio for commodity A,
SSRPREU, A aggregatable EU proteins self-sufficiency ratio for commodity A, and
SSRFAEU, A aggregatable EU fats self-sufficiency ratio for commodity A.
In order to do so, reliable statistical data and information on EU agricultural pro-
duction and trade are needed:
38 Noleppa, S.; Cartsburg, M. | EU agricultural trade: Consequences for virtual land trade and self-sufficiency
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Agricultural production data in tons for almost all crop and livestock com-
modities are available from Eurostat (2015a). For the purpose of this study,
most recent data for the years 2012 to 2014 were obtained. In very few excep-
tional cases (due to missing information), data had to be gathered from FAO
(2015b) as well as from Schmid and Goldhofer (2015).
Most recent agricultural trade data – for the years 2012 to 2014, were taken
from Eurostat (2015b). However, trade data are not available on a crop and/or
livestock commodity basis. Instead, so-called Standard International Trade
Classification (SITC) categories have to be used. SITC categories are usually
set for primary agricultural commodities, but in addition also for products
thereof. A good example is wheat: Trade data, i.e. export and import volumes
in tons, are available for durum and other wheat, but also for wheat flour,
(wheat-based) pasta and feed preparations etc. All those SITC categories
have to be aggregated to allow for the calculation of an appropriate trade bal-
ance. The methodology to be applied is the same which was used to calculate
the virtual land trade of the EU and its change using SITC categories and
can be studied in detail in von Witzke and Noleppa (2010) or Noleppa et al.
(2013) or by looking at annex A01; therefore it shall not be repeated here once
again.
In total, the included commodities cover more than 90 percent of the volume of ag-
ricultural produce (measured in tonnage) domestically marketed in the EU respec-
tively traded internationally by the EU. This allows to draw an almost complete
picture of the EU’s agricultural self-sufficiency. The following commodities respec-
tively commodity groups are covered within the study (listed are, first, the primary
commodity for which production data are available and, second, the corresponding
SITC category for which corresponding export and import data could be obtained
for the years 2012 to 2014):
Wheat; SITC categories: 4108, 4110, 4120, 4608, 4610, 4620, 8126;
Rice; SITC categories: 4208, 4210, 4220, 4231, 4232, 8125;
Corn; SITC categories: 4408, 4410, 4490, 4711, 4719, 4721, 4811, 4813, 8124;
Other Cereals; SITC categories: 4300, 4308, 4508, 4510, 4520, 4530, 4591,
4592, 4593, 4599, 4708, 4722, 4723, 4729, 4808, 4812, 4814, 4815, 4820, 4830,
4841, 4842, 4849, 4850, 8111, 8129 11230;
Oilseed Rape; SITC categories: 8136, 22261, 42171, 42179;
Soya; SITC categories: 8131, 9841, 22220, 42111, 42119;
Sunflowers; SITC categories: 8135, 22240, 42151, 42159;
Other Oilseeds: 8138, 22320, 42221, 42229, 42241, 42249, 8132, 22211,
22212, 42131, 42139, 5771, 8137, 22310, 42231, 42239, 22250, 42180, 22350,
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HFFA Research Paper 03/2015
42250, 9843, 22262, 22270, 8134, 22340, 42211, 42219, 8133, 22230, 42121,
42129, 42161, 42169, 42121, 42122, 42129;
Potatoes; SITC categories: 5410, 5611, 5641, 5642, 5661, 5676;
Other Roots; SITC categories: 5481, 5645;
Sugar (Raw); SITC categories: 5487, 6112, 6121, 6129, 6159, 5488, 6111,
6151, 11102;
Peas; SITC categories: 5421, 5422;
Beans; SITC categories: 5423, 5425, 5429;
Other Pulses; SITC category: 5424;
Tomatoes; SITC categories: 5440, 5672, 5673, 5992, 9842;
Onions; SITC categories: 5451, 5612;
Carrots: SITC category: 5455;
Cucumbers; SITC category: 5456;
Garlic; SITC category: 5452;
Avocados; SITC category: 5797;
Apples; SITC categories: 5740, 5994;
Apricots; SITC categories: 5793, 5895;
Bananas; SITC category: 5730;
Berries; SITC categories: 5794, 5831, 5832, 5839, 5995;
Oranges; SITC categories: 5711, 5910;
Citrus Fruits; SITC categories: 5712, 5721, 5722, 5729, 5894, 5920, 5930;
Figs; SITC category: 5760;
Melons; SITC category: 5791;
Pears; SITC category: 5792;
Pineapples; SITC categories: 5795, 5893, 5991;
Grapes; SITC categories: 5751, 5752, 5993, 11211, 11213, 11215, 11217;
Beef; SITC categories: 0111, 0119, 1108, 1111, 1112, 1121, 1122, 1251, 1252,
1681, 1760;
Pork; SITC categories: 0131, 0139, 1221, 1222, 1253, 1254, 1611, 1612, 1750;
Sheep/Goat; SITC categories: 0121, 0122, 1211, 1212, 1213, 1255, 1256;
Poultry; SITC categories: 0141, 1231, 1232, 1233, 1234, 1235, 1740;
Eggs; SITC categories: 2508, 2510, 2521, 2522, 2530; and
Milk; SITC categories: 2211, 2212, 2213, 2221, 2222, 2223, 2224, 2231, 2232,
2233, 2241, 2300, 2308, 2408, 2410, 2420, 2430, 2491, 2499.
40 Noleppa, S.; Cartsburg, M. | EU agricultural trade: Consequences for virtual land trade and self-sufficiency
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Annex A24: Specific self-sufficiency ratios of agricultural commodities
for the European Union in recent years and on average
(in percent)
Commodity 2011 2012 2013 Average
Cereals
Wheat 109 119 123 117
Corn 92 90 85 89
Other Cereals 112 116 114 114
Rice 66 65 60 64
Oilseeds
Oilseed Rape 84 86 90 87
Soya 3 4 3 3
Sunflowers 56 74 70 67
Other Oilseeds 89 88 88 88
Root Crops
Potatoes 107 106 107 107
Other Roots 96 95 94 95
Sugar Crops
Sugar (Raw) 83 79 84 82
Pulses
Peas 84 84 82 83
Beans 97 95 96 96
Vegetables
Tomatoes 104 106 104 105
Onions 109 109 111 109
Carrots 100 101 101 101
Cucumbers 101 102 101 101
Garlic 82 88 97 89
Fruits
Avocados 17 13 12 14
Apples 105 102 106 104
Apricots 312 223 351 288
Bananas 13 12 11 12
Berries 64 66 71 67
Oranges 59 52 48 53
Citrus Fruits 84 84 86 85
Figs 59 59 59 59
Melons 80 81 79 80
Pears 109 102 109 107
Grapes 98 97 98 98
Meat
Beef 103 102 103 102
Pork 114 114 114 114
Sheep/Goat 87 88 89 88
Poultry 106 107 108 107
Other Livestock
Eggs 102 103 103 102
Milk 107 107 108 107
Source: Own figure based on own calculations.
Noleppa, S.; Cartsburg, M. | EU agricultural trade: Consequences for virtual land trade and self-sufficiency 41
HFFA Research Paper 03/2015
Imprint
The agricultural trade of the European Union:
Consequences for virtual land trade and self-sufficiency
Steffen Noleppa, Matti Cartsburg
Berlin, November 2015
HFFA Research GmbH
Bülowstraße 66, 10783 Berlin, Germany
E-Mail: [email protected]
Web: www.hffa-research.com