Food & Agriculture

The agricultural sector in Greece remains an important sector of economic activity and employment for Greece, with exports of agricultural products accounting for one third of total exports in Greece. Agriculture contributes 4.1 percent of GDP.

Greece’s utilized agricultural area is close to 5 million hectares, of which 57 percent is in the plains and 43 percent is in mountainous or semi-mountainous areas. There are about 150 million olive trees in the country, either in systematic orchards or scattered across the country.

The Greek food and agriculture sector have a strong presence in the European and a growing presence in the US food markets and a number of companies with strong export growth. From olive oil to flour products, honey to processed meats and ready meals, Greek companies have leveraged the competitive advantages offered by Greek primary production in order to competitively enter and remain in global markets, making food and agriculture one of the most dynamic and high-growth sectors in Greek manufacturing.

Agri-food sector is shifting more people towards high-quality farm production and export, and shifting farmers to more sophisticated, export-focused, higher-value crops.

Greek specialty foods include a variety of products, ranging from high-value niche products (Chios Masticha, Kalamata olives, Kozani Saffron, Aegina pistachios) to widely available categories which are endemic to the Greek diet (e.g. Greek yoghurt, olive oil, honey) to Protected Designation of Origin Status (PDO) products only found in Greece (in 2013 Greece designated a total of 101 products with PDO identity including olive oil products, feta and other local cheeses, fruits, tomato products, meat products etc).

Aquaculture is a relatively specialized sub-segment of food production, it is a rapidly growing sector of the Greek economy – and one where Greece can leverage its competitive advantages and already is a major international exporter. In Greece, approximately 90% of the sector’s value is driven by two main fish products, seabass/seabream, in which Greece holds a dominant position in the global markets. Greek aquaculture production is known for its product quality and has enormous further growth potential if it invests in more capacity, economies of scale and cost-improvement initiatives.

Fish farming holds a leading position in Greece’s Food industry and it is a top industry sector in the EU characterized by strong market consolidation. Investing in the consolidation and expansion of aquaculture facilities and the improvement of competitiveness, operating efficiency and market access can yield significant returns for this sector based on its growth potential and existing market positioning.

Over the next years, the Greek food & agriculture sector is expected to be a significant contributor to GDP growth and value added, driven by several key market trends and competitive advantages:

• The recent shift towards organic, natural ingredients in the Greek agriculture sector which are highly regarded and can command a greater premium and value added
• The prevalence of the Mediterranean Diet, as a premier paradigm of healthy, natural eating across the world
• The key drivers of health, ethics, physical fitness and pleasure that affect consumer preferences in developed economies
• The increased drive for self-sufficiency and food safety which is one of the key social challenges of the “Europe 2020” strategy
• The potential for clusters of innovation and R&D in several specialized Greek food supply chains, combining EU funding, the work of research and academic institutes and the interest of industrial champions in the application of new technologies

Given the above environment and the inclusion of circular model, the Greek Food and Agricultural sector can take advantage of its smaller scale, access to high-quality inputs and traditional Mediterranean positioning to differentiate from the global food manufacturers and gain market share value-added product segments and higher price points as well as to attract strategic and institutional investors.