Browse Data and Analysis

After an exceptional year in sales in 2020, the Spanish retail sector is becoming increasingly competitive, while trying to find a balance between high input costs and improved efficiency, during a period of high inflation that once again gives price the leading role in purchasing decisions.

Competition by other crops continues to force Spain’s fodder area down. In MY 2022/23 the dry spring is anticipated to have negatively affected yields in non-irrigated land. On the processor side, energy prices will keep forcing margins down.

For MY2022/23, initially good crop prospects after the abundant rains in April were negated by above average temperatures registered in May and June. In-country grain demand remains relatively stable, driven by the recovery of the tourism sector, despite the somewhat lower livestock products exports and the grain prices hike.

In 2021, Chinese imports of alfalfa pellets hit record levels of 52,254 metric tons (MT) and $13.66 million by value, increases of 62 percent and 70 percent respectively. The market is dominated by Spanish-origin pellets.

The drought in Andalucía is anticipated to drive down area planted to cotton in Spain in MY2022/23. However, cotton crop area is highly inelastic given the few alternative crops available, and the fact that a significant part of the CAP payment to cotton continues to be linked to production partially offsets the potential area reduction.

In 2021, Spain imported $1.7 billion worth of agricultural, seafood, and forest products from the United States.

Increased production costs, mainly in feed, electricity, and labor, and lower live cattle as well as pork and chicken meat exports are keeping Spanish animal production at current levels, ending the expansion experienced in the last years.

Spain is a powerhouse for agricultural biotechnology in the European Union, as the country remains the largest grower of biotech corn and a major consumer of feed ingredients.

This report is an update of GAIN report SP2020-0045. It outlines the legislation applicable to the export of U.S. food products to Spain, particularly focusing on those rules that differ from EU legislation.

In 2020, Spain imported $1.67 billion of agricultural, fish and forest products from the United States. Outside the European Union Member States, the United States was the second largest origin of Spanish agricultural and related imports after Brazil.

This report focuses on specific Spanish certification requirements that differ or are in addition to EU-harmonized certification.

In 2020, Spanish livestock exports continued to reach record levels mainly driven by significant demand in the Middle East for cattle and in Asian markets for pork.