The increasing need for storage across the European block has been driven fundamentally via increased yields and harvest production. Europe has established itself as one of the world’s top 5 major agricultural exporters, seeing exports of cereals grow by 50 percent or 42mlnt between the period 2005 and 2015 to 107 million tonnes. Whilst all 28 countries have witnessed growth to some extent, it has been Eastern states of Romania, Bulgaria and Poland that have added a combined 22.85 million tonnes of capacity from 2005 to 2015. Although combined investment was made by the trade, processing consumers and port in assets as mentioned previously.
need peaks at harvests until the time of actual export. Table 1 shows the breakdown of storage capacity by country throughout the EU, with estimated shortages and surpluses based upon the commissions average storage requirement when taking into account cereal production, exports and import needs. Typically net importing nations such as the UK and Germany, run storage assets beyond capacity due to the ability to encouraged the use of stock management, turning both growers and processing consumers into price makers rather than price takers. The continuing evolution of European Common Agricultural Policy has positioned EU markets closer to international trade, following the removal
The trend for increasing on-farm storage and capacity at the point of production is a common theme across the world and just one of many factors that is evolving the agricultural supply chain. The freedom of information and speed of communication is enabling growers to make better informed decisions, which with increasing capacity to store crops, can delay marketing decisions. This rebalancing of the market pendulum is dictating the timing and terms upon which farmers sell grain, having has created an environment of complacency from consumption, as and collateral, have responded to increasing yield growth and overall production by building assets, particularly in exporting regions of Eastern EU turning them into price makers rather than price takers.
Figure 2: EU Member States with biggest Storage Increased between 2005 and 2015 (EU Commission)
8,184 + 11% 6,741 + 18% + 28% 5,430 + 100% + 40% + 647% 1,584 + 6%
1,016 + 17%
+ 13%
1,019 + 21%
- 35% BG DE DK FI FR HU PL 11 | ADMISI - The Ghost In The Machine | March/April 2018 RO ES SW UK + 19% + 45% + 29% + 99% + 132% + 1.872% + 598% 2,114 + 134% 2,418 18%
7,239 + 4% + 8%
7,441 Individual farm
Full EU Commission report available at https:// market-observatory/crops/doc/storage-logistics-
George Eddell E:
george.eddell@admisi.com T: +44(0) 20 7716 8054
2015 STORAGE CAPACITY BY MEMBER STATE VS EU COMMISSIONS ESTIMATED
MEMBER STATE 2015 EU STORAGE CAPACITY
Austria Belgium Bulgaria Croatia Cyprus
Czech Republic Denmark Estonia Finland France
Germany Greece
Hungary Ireland Italy
Latvia Lithuania
Luxembourg Malta
Netherlands Poland
Portugal Romania Slovakia Slovenia Spain
Sweden UK
Cooperative 8,874
5,065,549 3,820,630 14,032,575 2,504,676 311,292
11,427,481 9,954,900 1,470,806 7,559,500 90,870,486 48,104,734 3,144,337 20,144,534 2,593,903 15,683,826 2,377,920 5,615,498 170,655 88,000
2,275,630 24,368,366 1,913,580 23,377,236 5,875,219 609,635
29,905,814 6,498,430 19,517,051 359,282,263
Processing industry Wholesale/Trade
-10,370 -9,791 6,623
-2,619 -2,561 -1,398 -1,344 -1,071 -1,028 -652 -604 -449 -319 -57 -15 7
56 61
135 370
1,119 1,184 2,726 2,984 5,131 5,264 5,817
18,745
AVERAGE NEED
65% 83% 79% 79% 86% 69% 81% 68% 70% 80% 91% 85% 82% 75%
100% 100% 275% 111% 177% 124% 111% 125% 156% 111% 158% 129% 141% 126%
Transportation hub (including ports)
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