Source: Institute of Policy and Strategy for Rural Development
General economic situation: The European Commission (EC) in February 2021 stated that the GDP growth of 19 countries in the region using the euro (Eurozone) is expected to reach 3.8% in this year and recover later than originally hoped. This figure is down from a forecast of 4.2% for 2021 that the agency released by the end of 2020. The EC forecasts the European Union (EU) of 27 members is estimated to achieve growth 3, 7% in 2021 and 3.9% in 2022. Officials expect that the European economy will reach pre-pandemic COVID-19 parity in 2022, faster than previously predicted, though though the level of recovery will be uneven among member countries. However, these economic growth forecasts do not take into account the impact of the major recovery plan of the bloc. The program will pump 750 billion euros into the European economy through grants and loans, which are expected to begin this year. Therefore, it is expected that the real growth rate of the EU will be higher than the above forecast.
Summary of some news related to agriculture of the EU market in February 2021 as follows:
- Recently, the EC released an investigation into EU people’s expectations for food. In which, taste, food safety and cost are the main factors that directly affect people’s buying actions. Besides, the report also pointed out that for EU people, “sustainable” food is often associated with nutritious, healthy food, with little or no use of pesticides; while only about 20% related to the issues of fair profit for producers, as well as environmental protection.
- The EU and Japan have added 28 food brands to the list of geographical indications of each party protected under the EU-Japan Economic Partnership Agreement. The brands that Japan has committed to the EU include products such as cheese, essential oils, products of animal origin (eggs, honey …), smoked meat, butter, biscuits, olive oil, alcohol . And the brands that the EU has committed to Japan include products such as onions, white radish, soba noodles, celery, tomatoes, sweet potatoes, frozen tofu, beef, taro, crab, and cauliflower. green, chicken, beef, Japanese persimmon, burdock, grapes, asparagus, soybeans, pickled vegetables, watermelon, carrot, wine.
- The EC launched a food trade promotion program for the year 2021 worth € 182.9 million. Of which, 86 million Euros will be devoted to organic production, sustainable production, environmental protection and climate change adaptation campaigns. In addition, the focus markets for promotion are Japan, Korea, Canada and Mexico. The focus products will be milk and dairy products, olive oil and alcohol.
- The EC has announced the European Defeat Cancer Plan. Part of the plan includes actions to be taken by the EU and Member States to strengthen cancer prevention across the Union. This includes reducing harmful alcohol consumption, increasing access to a healthy diet, reviewing agricultural product promotion programs, studying tax measures on sugar and soft drinks, and reduced access to foods containing harmful substances.
- USDA estimates that the demand for organic food in the EU continues to increase. In fact, the EU is the second largest consumer of organic food in the world with an estimated total retail sales of 51.8 billion USD in 2019, up 14% compared to 2019 and 2 times higher than 10 years ago. there. The largest market for organic food in the EU is Germany and France with an estimated US $ 14 billion per country. Followed by Italy with nearly 4 billion USD and Sweden with more than 3 billion USD. In the year 2020, the Covid-19 pandemic will also increase the demand for organic food. The main reason was that consumers were forced to cook more at home instead of eating out during a blockade. As a result, they tend to choose more healthy products for themselves and their families.
Regarding the AFF trade with Vietnam, in January 2021, Vietnam exported 327.7 million USD to the EU, while importing 95.8 million USD, up 13.2% in terms of exports and 76.6% on import compared with January 2020. Among agricultural products exported to the EU, coffee, tea, rice and vegetables tended to decrease exports at a rate of -11.9%, -68.0%, -32.7% and -2, 2%, while rubber, wood and wood products, seafood, cashew nuts, pepper, rattan products and carpets, rubber products tended to increase at the rate of 123.3%, 23 , 4%, 28.2%, 25.9%, 61.4%, 50.7% and 147.0% compared to January 2020.
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