Brazil vs. the Netherlands: who exports more in agriculture?

The Netherlands is a small country whose land area of ​​41.528 km² is smaller than that of the state of Rio de Janeiro. Around 27% of its land is below sea level and its population of almost 18 million inhabitants makes it one of the most densely populated countries in the world. For comparison, Brazil is 200 times larger and eleven times more populous (203 million inhabitants). They are geographically different, but they have one similarity: both countries are among the world's leading exporters of agricultural products.

The Dutch position may seem surprising at first glance and is often mistaken for world leadership in agriculture. However, the high value of agricultural exports is not the result of a booming agricultural production volume, much less a large arable area. Brazil has an area devoted to agriculture – excluding pastures – almost fifty times larger.

Table 1- Agricultural area planted in Brazil and the Netherlands

Source: IBGE-PAM; EUROSTAT. Note: the figure for the Netherlands also includes pasture area.

The high value of Dutch exports is explained by two main factors. The first is that the country is a major corridor and hub for agricultural products arriving in Europe. In total exports of these products, a large proportion of transactions are made within the European Union (EU) itself (intra-bloc) — 69% on average from 2000 to 2022, with Germany being the main destination. 

Of the total value of agricultural products exported by the Netherlands in 2022, approximately 65% ​​were of domestic origin or were imported and processed in the country, as is the case, for example, with chocolate produced from cocoa beans from the Ivory Coast. The remaining 35% refer to agricultural products originating from other countries and re-exported by the Netherlands without processing or slightly processed, such as the simple unitization of a product received in bulk.

The Netherlands, therefore, is not characterized as a major “export producer” of commodities, like Brazil and the United States, but as a major “importer and (re)exporter” of agricultural products. This scenario is explained by the presence of Rotterdam, the largest port in northern Europe, which strategically operates as an important logistics hub for food distribution throughout the continent.

The revenue gain from Dutch re-exports without processing, after deduction of costs incurred, is relatively low for each euro of re-exported goods passing through the country (10 euro cents on average in 2021). On the other hand, exports of agricultural products of domestic or imported origin and with a high degree of local processing are more profitable (revenue of 58 euro cents on average in 2021 for each euro exported). 

This is the second reason for the high value of Dutch exports. The Netherlands has a history of producing high added value due to a specialized intensive agricultural system, with high investment in capital and skilled labor. Among the products processed and exported by the country are dairy products, floriculture products, meats and beverages. 

The Dutch flower production chain is emblematic of this added value. Behind the beautiful flower fields, such as those that inspired Monet's paintings, and the highly technological modern production in greenhouses with temperature control and irrigation, there are many years of research and substantial investments. The development of attributes such as colors, textures, stem and bud size, as well as greater production efficiency, in addition to all the specificity and post-harvest care, given their high degree of perishability, require infrastructure, personalized management and constant innovation.

However, not everything is rosy in Dutch agriculture. In contrast to the impressive numbers and the sophistication of production and export, the animal density – the highest in the world – on poultry, pig and dairy farms generates environmental consequences that are strongly contested by environmentalists, in addition to demanding greater sanitary rigor. The so-called “nitrogen crisis” is the great contemporary challenge for Dutch agriculture. ammonia, originating from urine and animal manure, in excess, causes soil acidification, atmospheric and groundwater pollution and loss of biodiversity. 

The Netherlands has the second highest nitrogen emissions in Europe, partly because it is a dense, urbanized nation. As such, the country has controls in place that have helped reduce nitrogen emissions. nitrogen oxides from power plants and combustion engines. However, agricultural activity is responsible for half of the country's emissions. After a significant reduction from the 1980s onwards, emissions have been increasing since 2014 due to the expansion of dairy operations. The government plans to reduce nitrogen-related emissions by 50% by 2030 - compared to 1990 levels - in order to comply with EU regulations. Among the announced actions is the controversial plan to acquire and close thousands of productive farms in areas considered more environmentally sensitive. 

In the context of climate change, emissions from agricultural activities have been put under the spotlight, both in the Netherlands and in Brazil. The formulation of good public policies continues to be fundamental for the alignment of production and environmental conservation interests vis-à-vis the maintenance of food safety, as well as exports of agricultural products.  

The Netherlands is a leader in the production and export of high-value-added agribusiness products, achieving high yields in a small territorial space. However, export data should be viewed with caution, so as not to confuse exports of domestic production with re-exports of commodities to the European market itself.

References and recommended readings:

European Commission. Eurostat - European Union Statistics. Accessed on: 27/11/2023

Heijman, W., Gardebroek, K., & van Os, W. (2017). The impact of world trade on the Port of Rotterdam and the wider region of Rotterdam-Rijnmond. Case Studies on Transport Policy, 5(2), 351-354. Accessed on: 21/11/2023

Brazilian Institute of Geography and Statistics (IBGE). SIDRA - IBGE Automatic Recovery System. Municipal Agricultural Research (PAM) - Tables. Accessed on: 27/11/2023

Jukema, G.; Ramaekers, P.; Berkhout, P. (2023). De Nederlandse agrarische sector in international funds : Editie 2023. Wageningen: Wageningen Economic Research (Rapport / Wageningen Economic Research 2023-004) - ISBN: 9789464475463. Accessed on: 23/11/2023

Our World in Data. CO2 emissions by country - Netherlands. Accessed on: 07/12/2023

Porter, ME; Vallejo, J.R.; Van Eenennaam, F. (2011). The Dutch Flower Cluster. Harvard Business School. Accessed on: 04/12/2023

Stokstad, E. (2019). Nitrogen crisis threatens Dutch environment—and economy. Science, 366, 1180-1181. Accessed on: 07/12/2023.

UN Comtrade - International Trade Statistics Database. Accessed on: 27/11/2023

Van der Heide, CM, Silvis, HJ, & Heijman, WJM (2011). Agriculture in the Netherlands: its recent past, current state and perspectives. APSTRACT: Applied Studies in Agribusiness and Commerce, 5(1-2), 23-28. Accessed on: 17/11/2023

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