The Spanish agri-food sector closed 2023 trying to curb inflation with measures such as the VAT abolition/reduction on basic foodstuffs, which did not help olive oil, which continues to be paid at the price of gold. A year in which many crops were depleted by the persistent drought, and in which a new CAP was implemented that did not satisfy most of the farmers. Among the challenges for 2024 are the elections to the European Parliament, where key issues such as the Financial Framework 2028-2034 will have to be approved, as well as a more than foreseeable reform of the current CAP.
The increase in farm income in 2023 was due both to the rise in the value of agricultural output (which reached a new high of €65,081 million) and to the drop in production costs.
Crop production fell by 3.4%, due to a drop in the volume produced (-11.7%), partly offset by the rise in prices (+9.4%). Performance was uneven by sector. While production fell in sectors such as olive oil (-59%), cereals (-35%) and wine (-21%), prices increased in olive oil (+71%), fodder plants (+36%), fruit (+13%), vegetables (+9.5%) and potatoes (+7%). The cereals sector added a 24% drop in prices to the drop in production.
In livestock output, the value increased by 13.4% due to the 16.3% increase in prices, while the volume produced decreased by 2.5% with respect to 2022. The main production decreases were in sheep and goats (-10%) and cattle (-7%), with increases in poultry production. On the other hand, there has been a generalized increase in all products, highlighting eggs (+30%), milk (+22%), pork (+21%). The positive side is in production costs, which decreased, especially in energy, -31.9%, and fertilizers, -27.4%.
For COAG, the figures for farm income are "disheartening", because if its growth is due to the good performance of sectors such as fruit and vegetables, pork and milk, the fact is that sectors of enormous importance for Spain, such as arable crops, olive groves and vineyards, have had very poor results.
As far as production costs are concerned, although it is true that there has been a decrease of 4.6% compared to 2022, according to UPA, these costs are extremely high compared to 2021 and 2020, with increases of 19 and 34% respectively; these high costs are here to stay and will affect food production over the next decade.
General elections in July 2023
The re-appointed minister for Agriculture, Fisheries and Food Luis Planas, assured to continue to prioritise “youth and women, water and digitalization”, so that in his third term in office he will stick to his established course.