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Country report: the Czech Republic

Food logistics in the land of castles and châteaus

The Czech Republic is well-known as one of the European centres not only for beer, but also because of its geographical location. The country offers many advantages to international food logistics, which includes Nagel Česko, the Czech subsidiary of the Nagel-Group.

Until the 1930s, the present-day Czech Republic experienced a period of industrial and cultural boom. The landlocked country in Central Europe attracted creative minds from all over the world: authors, artists, architects; the visitors' list was long. Even today, the country, which covers an area of 78,866 square kilometres, offers a reminder of its past splendour.

For example, the Czech capital Prague is a popular destination for people from all over the world. However, the lesser-known regions and villages away from the million-strong metropolis also have a lot to offer. According to the Czech National Tourism Board and National Statistical Office, the castles, châteaus, and spas with centuries of history and the hospitality of around 10.5 million inhabitants continue to attract ever more visitors.

Improved infrastructure

The Czech road network covers around 55,000 kilometres and the rail network covers more than 9,500 kilometres. Additionally, the country has many inland waterways and six airports. Meanwhile, about half a billion tonnes of goods are transported throughout the Czech Republic each year.

Despite the developments to date, further improvements are still needed in the infrastructure. Due to the increased efforts by the government, around 4.7 billion euros (equivalent to approx. 120.6 billion Czech korunas) were provided by the EU for improvement projects and the development of the transport network in the country for the period from 2014 to 2020. According to Germany Trade and Invest (GTAI), the Czech Republic still lacks important motorway sections to Austria, Poland, and to the eastern part of the country in order to comply with European standards.

The Czech logistics sector is booming

The Czech Republic's central location in Europe primarily benefits the transport and logistics sector. According to the German-Czech Chamber of Industry and Commerce, this sector generates an annual revenue of around 20 billion euros and is one of the most important economic sectors in the country. The Czech Republic ranks 26th in the current World Bank's Logistics Performance Index and tops the list in Central and Eastern Europe.

Prague serves as the main transport link for the Czech Republic. Numerous logistics companies have established their operations in the surrounding area.

Food industry as a key sector

According to the Federal Statistical Office, the gross domestic product was about 193 billion US dollars in 2016. The export of goods accounts for 80% of the Czech Republic's GDP; especially, the manufacturing industry is very strong in terms of generating revenue. For example, the Czech Republic is one of the few countries that has an export surplus in trade with Germany. GTAI attributes this mainly to the national automotive industry as its manufacturers produce many components for the German automotive manufacturers.

According to the Czech-German Chamber of Industry and Commerce, the food industry is also a very important industry. It generates ten percent of the revenue in the processing industry and is therefore considered to be one of the key industries within this sector. The meat processing industry contributes the largest share to the revenue.

Beer plays an important role in the food industry

It is not a cliché to say that beer plays an important role in the culture of this country. The Czech beer is an export success and some claim it to be "the best beer in the world". Whether the beer beats all competition is a matter of taste. It is clear, however, that the national breweries are masters of their craft.

Headerimage: ©Miro Nowak | stock.adobe.com

Nagel Česko — the Czech subsidiary of the Nagel-Group

Nagel Česko has had its headquarters in Jažlovice since 2004. In 2016, the subsidiary expanded its site by opening an additional warehouse. Another branch of Nagel Česko is located in Želatovice in the east of the country. It is only a few kilometres away from Slovakia or Poland.

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