Spain: Spanish dry fodder consolidate its presence in China
Although Middle East continues to be the main customer of Spanish alfalfa, Spanish exports to China has gained prominence in the last two seasons. In MY2019/20, they represented 24% of total exports, according to a USDA report.
Spain is the EU-28 largest dry fodder producer and the third largest exporter worldwide. In Spain, the combined planted area for alfalfa and vetches covers an average of over 350,000 Ha. More than half of this area planted to fodder crops maintains contracts with the dried fodder industry, the remaining area is either sun-cured or livestock grazed.
In the absence of strong domestic demand, the exports/production ratio has grown steadily over the past five years.
Traditionally, Spain has been the first fodder supplier to the Middle East, while the US dominated exports to Asian markets. China’s duties on US alfalfa imposed in mid-2018 triggered increased sales of Spanish fodder to the Chinese market. Although China phased out its duties in September 2019, Spain managed to consolidate its presence in this Asian market, which absorbed 24% of Spanish dried fodder exports in MY2019/20, and were 14% higher than the previous season.
In MY2019/20 Spain exported over 75% of its dried alfalfa production, slightly below the levels achieved in the previous season, as dry conditions reducing pasture availability boosted domestic demand, and drove the export/production ratio down to 76% from the 80% registered in MY2018/19. In MY2020/21, in addition to the good pace of exports to the Middle East and Asia, dry conditions prevailing in other EU countries could lead to a rebound of sales within the EU, as it occurred in MY 2018/19.
The bulk of Spanish dried alfalfa exports is concentrated to a handful of markets destinations (Fig. 1). The UAE, which absorbed over 45% of the exports in MY2019/20, is Spain’s largest market, followed by China, which accounted for 24%.
The COVID-19 pandemic has not affected exports in terms of consumption patterns. However, since the beginning of MY2020/21, Spanish fodder exports, as other sectors, are facing pandemic-related logistical challenges in transport. As agricultural operations were considered an essential activity under Spain’s coronavirus confinement measures, alfalfa field operations continued to function normally.
The full report in English can be found here: https://bit.ly/2Cl67f0
Source: USDA-Foreign Agricultural Service