Spain: The Spanish ago-food trade balance grew by 25.8% in 2020
Spain's trade balance in agri-food and fishery products rose by 25.8% in 2020 compared to 2019, to reach 18,693 million euros. In contrast, the overall national trade balance shrank by 57.4% in the same year.
Exports of Spanish agro-food and fishery products reached an all-time high of 53,848 million euros (+4.1%) in 2020 compared to 2019. The data show the strength of a sector with a strategic nature for the Spanish economy. This good performance is more striking in a scenario marked by the uncertainties of the pandemic and with international trade in decline -exports of the Spanish overall economy fell by 10.2% last year (Fig 1).
These are some of the figures compiled by the Ministry of Agriculture, Fisheries and Food regarding foreign trade in 2020. It should be noted that forestry products are not included, which did appear in previous reports, as they now depend on the Ministry of Ecological Transition and the Demographic Challenge.
Agro-food imports
Imports of the total Spanish economy fell by 14.7% in 2020. The decrease was smaller in the agro-food and fishing sector, by 4.6%, reaching 35,155 million euros.
As a result, the trade balance of the Spanish agro-food and fishing sector (the difference between exports and imports) increased by 25.8% and amounted to 18,693 million euros, a figure that also represents a record for the country (Fig. 2). In contrast, the trade balance of the entire Spanish economy fell by 57.4% in 2020.
Taking into account last year's performance, the agro-food and fishing sector consolidated the important role it plays in Spanish foreign trade; it now accounts for 20.6% of total national exports, while its imports represent 12.8%.
Main exported products (Fig. 1)
The main export contribution came from the fruit group, with a value of 9.57 billion euros (+5.8%). In second place was meat, which sold for a value of 8,436 million euros, being the subsector with the highest growth (17.8%), driven by Chinese demand. Vegetables were the third most exported group, with 6,890 million euros (+3.1%).
The beverages group was most affected by the pandemic, so that its total exports fell by 3.5%, with sales amounting to 4,348 million euros. Olive oil exports also fell somewhat, by 1.5% to 4,182 million euros.
Trading partners (Fig. 3)
The EU remained the preferred destination for Spanish food and beverage exports, accounting for 63% of total exports, with an increase of 1.75% (33,760 million euros in total value).
The proportion accounted for by the EU until last year was even higher, 72% in 2019, before Brexit. Although the data refer to 2020, as this report is made in 2021, the UK is already listed as a third country.
The value of agro-food and fishery exports to third countries increased by 8.5%, reaching a total of 20,088 million euros. This rise was due to the significant increase in sales to China, which rose by 67.5%.
No replacement for Russian market
In the first four months of 2021, Spanish fruit and vegetable exports to third countries fell by 22.5% in volume and 24% in value compared to the same period in 2020. When seven years have passed since the Russian veto on imports of fruit and vegetables from the EU, the sectoral organization FEPEX uses these poor results to highlight the difficulty in consolidating new markets.
In 2013, before the veto, Spain directly exported fruit and vegetables worth 229.9 million euros to Russia. The volume was 231.4 million kilos, although the actual volume was considered much higher given the strong weight of re-exports mainly from the Netherlands, France and Poland.
According to FEPEX, no other third country destination has become an alternative to the Russian market. In fact, in the first four months of 2021 compared to the same period in 2020, Spanish fruit and vegetable exports to non-European countries fell by 22.5% in volume and 24% in value.
Progress in opening new markets for fruits and vegetables
The Fruit and Vegetable Working Group continues making some progress in opening new markets. Now, work is being done to open the Canadian market for cherries, blueberries and tomatoes, and in January, the opening of the market for strawberries was achieved. With the USA, negotiations are underway to open the market for cherries, nectarines and plums, pears and apples, and strawberry plants.
As far as Asia is concerned, negotiations with Thailand are well advanced for pears and grapes. In addition, the authorization of air shipments of cherries is also being worked on with this country.
Sources: Ministerio de Agricultura, Pesca y Alimentación and FEPEX