Logistics: Strategies for EU Growth in G&O

Many regions worldwide have been increasing investments in logistics infrastructure to support growth in grain and oilseed storage and transport. G&O players are investing in both origination and destinations and emerging and developed regions worldwide. Rabobank believes that interesting opportunities will also arise in the EU.

On 23 February, Rabobank’s industry analyst Vito Martielli took part at public hearing in the European Parliament together with Copa-Cogeca and gave a presentation on investments opportunities in logistic infrastructure for grains and oilseeds in Europe.

4 key take aways

1. Future investments expected in Europe

Most of the future investments in storage and logistics infrastructure are expected to occur in the central and eastern EU. France and Germany which are the two engines in EU grain and oilseed (G&O) production are expected to see growth in mainly ’inland origination’ and waterways.

2. Export potential and distribution

The G&O market needs to activate simultaneously both private and public investments to fully capture export potential and distribution of G&O within the common market G&O players should go beyond their national borders to fully capture the advantages and synergies the EU market.

3. Increase sourcing in Eastern EU

Those with pan-European ambitions in particular should increase sourcing opportunities in Eastern EU; presence in destination countries in the south EU and strengthening of inland origination in their domestic countries.

4. Business models and cooperatives

Cooperatives can play a bigger role in G&O collecting in southern and Eastern EU countries by learning from business models in the northwestern EU.

Read more details related to the public hearing in Copa-Cogeca's press release.

Find out more about the strategy and opportunities arising in the G&O market in the Rabobank Industry Note "European Grains and Oilseeds on the Move: Investment Opportunities Abound in Logistics Infrastructure."