Rabobank Says More Investment is Needed in EU Grain Sector

December 18, 2014

A new EU Commission forecast states that in 2014 the EU saw a larger than expected grain harvest, becoming the world’s top wheat export market – a trend that is predicted to continue until 2024. New research conducted by Rabobank and Copa-Cogeca indicates that infrastructure and storage capacity in the EU grain sector will not be sufficient in order to maximize trade and ensure adequate supply of animal feed without significant investment. Due to yield improvements and export potential, Eastern Europe is forecast to be the main region of growth, giving global players the opportunity to diversify their sourcing. Germany and France are expected to see growth in inland origination. Entities with expansion ambitions across Europe are encouraged to invest in placement, logistics, and origination accordingly. Copa Cogeca also notes that there exists vast opportunities to boost growth in both upstream and downstream activities along the EU grain value chain, and urges the EU to include projects toward this end in the €315 billion Juncker Investment Plan.

 

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