Food & Climate
Swedish Global Trade & Export Finance (SEK) did not exceed 1% of Swedish food export financing last year (2024), due to the perishable nature of these goods, an official at the agency told “Food & Climate” platform.
The agency’s director, Jens Hedar, said that SEK focuses on financing the exports of companies operating in infrastructure-related activities that require long-term financing, and that food exports are not among these interests.
Hedar’s talk to “Food & Climate” platform came on the sidelines of the Swedish-Egyptian Business Forum, which was held last week in Cairo (the Egyptian capital), with the participation of the Egyptian Minister of Investment, Hassan Al-Khatib, and the Minister of Planning and International Cooperation, Rania Al-Mashat, and from Sweden, Benjamin Doussa, Minister of Development Cooperation and International Trade.
It is worth noting that the rapid perishability of food commodities is one of the reasons for the waste of large quantities of food worldwide. This waste leads to an increase in the number of hungry people, in addition to harming the climate.
$10 billion financing
Jens Hedar, Director of the Swedish Trade & Export Promotion (SEK), said that the volume of Swedish export financing for domestic and international companies reached approximately $10 billion last year (2024), only 1% of which was for food exports.
He explained in an interview with “Food & Climate” platform that the (SEK), which supports the exports of Swedish companies, both public and private, operating at home and abroad, supports exports from the Swedish dairy industry.
Sweden plays a vital role in the global dairy market and is known for its high-quality dairy products and innovative and sustainable agricultural technologies. The dairy sector is central to the Swedish economy, according to “Dairy News Today.”
Sweden produces approximately 2.8 billion kilograms of milk annually, supported by a herd of approximately 320,000 dairy cows and 12,000 dairy goats.
Sweden processes approximately 2.6 billion kilograms of milk annually. The country is particularly well-known for its cheese production, with a total annual output of 190,000 metric tons. Sweden also produces approximately 50,000 metric tons of milk powder and 75,000 metric tons of whey annually, reflecting the diversity of its dairy products.
Sweden exports approximately 600,000 metric tons of dairy products annually, worth an estimated €1.2 billion. Its main export markets include Germany, Denmark, and Finland.
The country imports approximately 400,000 metric tons of dairy products annually, worth an estimated €800 million, mostly from the European Union.
The Swedish dairy market is witnessing significant developments, including rising raw milk prices, which now stand at €44.69 cents per kilogram.
Efforts are being made to achieve sustainability and reduce environmental impact, in addition to advances in processing technologies. The export market is expanding significantly, particularly in Asia and the Middle East.
Expand support for food exports
Jens Hedar, Director of the Swedish Trade and Export Promotion (SEK), emphasized the agency’s desire to expand its support for food exports. However, the nature of these commodities prevents this, as they are highly perishable and its investments are short-term, while the agency focuses on long-term investments.
He said, (SEK)’s funding focuses on products related to the energy and transportation sectors, such as buses, trains, and trucks, as well as telecommunications and healthcare.”
He continued, “Recently, funding for defense projects has increased, and we have been doing this for a long time. However, following a change in global circumstances, especially Russia’s invasion of Ukraine, demand for defense equipment increased, and we finance Swedish buyers of this equipment.”
It is worth noting that Russia’s invasion of Ukraine in February 2022 not only affected the arms market but also caused massive damage to global food commodity markets, especially since the two countries are the world’s largest grain producers. The lack of grain flow to markets led to record-high wheat and corn prices until the Ukrainian grain export agreement, or the so-called Black Sea Initiative, was concluded between Russia and Ukraine, mediated by Turkey and the UN leadership, on July 22, 2022. The agreement aimed to return Ukrainian grain exports to pre-war levels, exporting 5 million metric tons per month. Moscow withdrew from the agreement less than a year later.
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