Would the BRICS be an opportunity for Spanish fruit and vegetables?
The fall in fruit and vegetable exports and the growth in imports is becoming a trend in Spain. Currently influenced by the climate and the competitive disadvantage against third countries, the consolidation of this trend is very worrying for the sector. It has long been calling for the need to strengthen market diversification measures.
Although agri-food exports as a whole (tariff chapters 01 to 23) set a new record in the first quarter of 2023, so did imports, mainly in some products in which Spain is a leading exporter, such as fruit and vegetables. Trade figures for the first half of 2023 have just been published, showing a sharp increase in imports of fresh fruit and vegetables.
Import growth is becoming a trend
Exports of fresh fruit and vegetables fell by 7.89% in volume, reaching nearly 6.3 million tonnes in the first half of 2023 compared to the same period in 2022. Meanwhile, the value of these exports grew by 7% due to the effect of inflation, to almost €10 billion.
In the same period, fruit and vegetable imports amounted to 2.2 million tonnes, an increase of 14.09%, generating a value of €2.4 million, which means a growth of 23.78%.
The decline in export volume is observed in both vegetables and fruit, being more marked in the latter. In the reference period, the value of exported vegetables rose by 13.62%, while that of fruit rose by only 1.31%, despite the strong increase observed in some products, such as melon and watermelon.
Exports down, imports up
In 2022, Spanish exports of fresh fruit and vegetables reached 12 million tonnes, 10.4% less than in 2021, while the value increased by 1.6%, totaling almost €16 billion. The year-on-year decline in the volume exported was most notable in fruit, with a 13% drop, while the value of exports fell by 3%.
As for Spain’s fruit and vegetable imports in 2022, they grew by 7% in volume, reaching 3.8 million tonnes, and by 15% in value, to €3.7 billion.
According to the sectoral organization FEPEX, the sharp drop in the volume of exports was largely due to adverse weather conditions, frosts in spring, incessant rain in April and May, heat waves in summer, which led to significant reductions in crops. The organization therefore called for specific measures to encourage investment to cope with increasingly adverse weather conditions.
Trade partners
In 2022, in terms of geographical areas of destination for Spanish fruit and vegetable exports, Europe accounted for 96% of total exports. The EU received 81%, with 9.8 million tonnes, followed by the UK, where 1.4 million tonnes were sold (-7%).
Outside Europe, in 2022, exports increased by 4% compared to the previous year, but did not even reach 500,000 tonnes, hence the importance of the European Commission's regulations which, for FEPEX, must be in line with the productive reality of the EEMM and clearly support the European production model and not generate distortions of competition with third countries.
In the first half of 2023, Spanish exports of fruit and vegetables to the EU fell by 7% in volume, increasing by 8% in value. The EU's share in the value of Spanish exports stood at 83%, a figure similar to that of 2022. Exports to third countries grew by 1% in value, with a 17% share of Spain's total exports of fruit and vegetables.
Spanish exports to non-EU European countries in the first half of 2023 rose by 8% in value but fell by 7% in volume. This was mainly due to the fall of the UK which, although its purchases increased by 3% in value, decreased by 10% in volume due to "strong competition from third countries", according to FEPEX.
As far as non-European third countries are concerned, exports fell significantly in the first half of this year. The first destination country was Canada, with 53% less volume, followed by Brazil (-13%) and the United Arab Emirates (-54%).
Taking into account all the figures mentioned above, plus those collected even before the pandemic, more and more voices in the sector are asking whether the emerging economies of the BRIC group could be an alternative for Spain to maintain (and increase) its level of exports.
Trade relations between Spain and the BRICS
Brazil is one of the main third country destinations for Spanish exports of fresh fruit and vegetables, although the trend is downwards. In the first half of 2023, exports stood at 14,449 tonnes, 13% less than in the same period of 2022. On the other hand, imports have grown by 8%, reaching 71,084 tonnes.
China, South Africa and India have much lower volumes than Brazil and the trend in Spanish sales has also been downwards. As for Russia, since 7 August 2014, it has imposed a veto on products from the EU; at that time, it was the leading non-EU market for Spanish fruit and vegetables.
There is no further news on this except that Spain is reducing its presence in the BRICS.
Mocht u interesse hebben in de Spaanse groenten- en fruitsector, dan is de volgende informatie wellicht ook interessant voor u: Handelsmissie hergebruik reststromen groenten en fruit Spanje (rvo.nl)