COUNT YOUR CHICKENS
From the rainy north, through the cereal plains and the Mediterranean orchards, right down to the sunny south, where olive fields extend beyond the horizon, Spain’s various crops represent important production within the EU.
According to data from Eurostat, production in the primary sector in Spain represents 12% of the total output of the EU. Whilst, during 2020, the world experienced a collapse in demand in almost every sector and production dropped, farmers in Spain continued plying their trade, increasing final output in agriculture and cattle by up to 4.3% over the year, according to data published by the Ministry of Agriculture, Fisheries and Food.
Digitalization and sustainability have become the two pillars on which Spain’s primary sector bases its coming future. Technology and environmental protection work together in order to increase productivity, fight desertification, and safeguard terrestrial ecosystems. In the words of Javier Goñi, president of Fertiberia: “Agriculture must be transformed within the new framework of fighting climate change.”
Innovative techniques, such as precision agriculture, ultra-modern irrigation, and the robotization of livestock farms have been introduced, and results are promising—the agriculture sector hasn’t been this crucial to national GDP since 2005. This is somewhat due to the collapse of the wider economy, but there are other factors at play. Increasing productivity in rural areas has added huge value to the agricultural sector, even though the labour force has decreased YoY.
It is also necessary to emphasize the international relevance of the sector. Spain is the fourth most-internationalized economy in Europe.
Spanish wines, citrus fruits, oils, and vegetables are a strong aspect of Spain’s international image. Almost one-third of production, according to Eurostat data, is destined for international markets and, although the trend fell in 2021, estimates for 2022 suggest a return to form.
Despite strong prospects, however, it is also true that the Common Agricultural Policy (CAP) represents an important lifeline for producers, supplying the agricultural sector with about 18% of its gross income. Therefore, expected changes in CAP allocation criteria may jeopardize calculations in some subsectors.
Given the importance that this sector holds for Spain, farmers continue to enjoy strong governmental support as the authorities look to reduce dependence on third countries for supplies. With that in mind, Spanish farmers can continue to count their chickens, knowing that their efforts will be backed at the highest level.