Agricultural and Citrus Markets in Spain

In terms of population, Spain is the fourth largest country in the European Union, excluding the United Kingdom, with approximately 46 million citizens. Similarly, Spain has the fourth largest economy within the EU, excluding the UK, with a gross domestic product (GDP) above US$1.6 trillion. With a territory of more than 500.000 square kilometers, Spain is the second largest country within the EU and a major producer of agricultural goods. This article explores the status of agricultural markets in Spain.

Agricultural and Citrus Markets in Spain

The Spanish economy is divided into 3% agriculture, 22% manufacturing, and 75% services. Within the agriculture industry, Spain’s main products are grains, vegetables, olives, wine grapes, sugar beets, citrus, beef, pork, poultry, dairy products, and fish. Having yielded more than 7 million metric tons of citrus fruits during 2016, Spain remains the leading citrus producer of the EU.

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The production of oranges in Spain has gone from 3.5 million metric tons during 2014 to 3.1 million in 2015, and an expected total of 3.6 million metric tons during 2016. Meanwhile, orange imports into Spain have remained minimal accounting for 130.000 metric tons during 2014 and 170.000 metric tons in 2015. Spain is also a major producer of tangerines, with a total output of 2.4 million metric tons in 2014, 2 million metric tons during 2015, and a total of 2.5 million metric tons of tangerines forecast for 2016. In the case of tangerines, imports are truly minimal, not exceeding 15.000 metric tons on any given year.

For both tangerines and oranges, Spain is a major international exporter, particularly towards other members of the EU. During 2014, Spain exported a total of 1.9 million metric tons of oranges. Meanwhile, in 2015, orange exports totaled 1.6 million metric tons and, for 2016, exports are forecasted at 1.9 million. Within the tangerines market, Spain exported 1.7 million metric tons in 2014, followed by 1.5 million during 2015 and an expected 1.7 million metric tons for 2016. Another citrus crop cultivated in Spain is lemons. During 2014, Spain produced some 1.1 million metric tons worth of lemons, which then decreased to 776.000 metric tons in 2015 and increased back up to approximately 955.000 metric tons of lemons during 2016.

Even though Russia has been a major market for Spanish citrus products throughout the last decade, the recent onset of the EU economic sanctions against Moscow due political clashes has effectively closed the Russian market for Spanish agriculture. Nevertheless, Spanish citrus exports have found new markets, particularly throughout Asia and Latin America. However, the EU sanctions against Russia are set to expire on January 31, in less than a week, and it is still unclear as to whether the sanctions will be modified or even renewed. Similarly, the new administration in the United States is likely to ease up on economic sanctions against Russia, which means that trade from western markets towards Russia will likely pick up again in the near future.

(Read more about International Trade and Food Markets in Chile)