European Union's Agri-Food Trade Balance Deteriorates in 2024

Strategic Insights -

The European Union's (EU) agri-food trade balance experienced a significant downturn in 2024 compared to the previous year, with exports increasing slightly while imports rose more sharply. This development has cast a shadow over the competitiveness of European agri-food products, particularly in terms of price, quality standards, certification requirements, and adaptability to global market demands. The Commission has been urged to take concrete measures to reverse this trend, which has led to a decrease in the EU's trade surplus from EUR 70.1 billion in 2023 to EUR 63.6 billion in 2024.

Key Takeaways:

  • The EU's agri-food trade balance declined by EUR 6.5 billion in 2024 compared to 2023, with exports increasing by 2% and imports rising by 10%.
  • The decline in the trade surplus is attributed to structural and cyclical factors, including competition from non-EU countries, volatile global market prices, and increasing production and transport costs in the EU.
  • The Commission has launched initiatives to enhance the competitiveness of European agri-food products, such as the Agricultural Policy Modernisation Programme and the EU Quality Policy.
  • Exports to key markets, including the United States, China, and Brazil, have been affected by these developments, with a decline in sales of high-value products such as meat, dairy, and fresh produce.
  • Trade agreements with countries like the United States, Japan, and Australia are expected to have a mixed impact on the EU's agri-food trade balance, with potential benefits from increased market access and tariffs offset by increasing competition from third countries.
  • The Commission is exploring new initiatives to support EU farmers, including the development of new products and value-added food chains, as well as investment in agri-tech and digitalisation.
  • A group of farmers from Centre-Val de Loire, in France, reports that their business face increasing competition from cheap imports of meat and dairy products.

Statistics:

  • The EU's agri-food trade balance decreased by EUR 6.5 billion in 2024, from EUR 70.1 billion in 2023 to EUR 63.6 billion in 2024.
  • EU exports of agri-food products increased by 2% in 2024, reaching a total value of EUR 132.1 billion, while imports rose by 10%, valued at EUR 175.7 billion.
  • The EU's trade surplus for agri-food products declined from 40% in 2023 to 36% in 2024.

Sources:

  • European Parliament Question for written answer E-003181/2025 to the Commission Rule 144 Daniel Buda (PPE)
  • MIL OSI Europe News (http://milnz.co.nz/mil-osi-aggregation/) - Copyright 2025 Multimedia Investments Ltd, distributed by Contify.com