Multiple factors favour investment
- World Food Demand
- Climate and Soil Quality
- Production and Export
- Government support
- Innovation and Technology
Growing Global Demand
- The world’s population is expected to grow by approximately 2 billion people by 2050, reaching 9.7 billion. To meet this demand, it is estimated that food production will have to increase by 70% over the same period.
- The demand for Spanish agricultural products in international markets, especially in Europe, America and Asia, is constantly growing.
Favourable climate
- Climatic diversity: Spain has a wide variety of microclimates that allow for a wide range of crops all year round.
- Sunshine hours: Spain receives between 2,500 and 3,000 hours of sunshine per year, which is ideal for crops such as vines, olives and citrus fruits.
Soil diversity
- Spain’s geography has fertile soils suitable for high value crops such as vegetables, fruit trees and cereals.
- Areas such as Andalusia, the Valencian Community and Murcia are known for their high agricultural productivity.
Production
- Spain is the leading EU-27 producer of pigs (24% market share), sheep and goats (26%), fresh fruit (20%), olive oil (42%), citrus fruits (54%), and the second largest producer of fresh vegetables (20%), plants and flowers (15%) and eggs (14%).
- The Spanish agri-food sector is 22% more productive than the EU-27 in 2023 and also the most competitive in both the primary and processing sectors.
Export to International Markets
- Spain is the fourth largest exporter in the EU-27, with a 10% market share, and is at an all-time high with a value of 72,258 million euros (2023).
- The main market is the EU-27 (68%), followed by the UK (7%), the USA (4%), which is growing steadily, and China (less than 3%), which is losing weight.
Political support in Spain and the EU
- EU Common Agricultural Policy (CAP): In the period 2021-2027, Spain will receive approximately 47,724 million euros from the CAP to support agriculture and rural development.
- National subsidies: The Spanish government offers various grants and subsidies for modernisation, sustainability and energy efficiency in agriculture.
- Environmental policies: The implementation of sustainable practices and the focus on reducing environmental impact are priorities in Spanish agricultural policy.
Innovation and Technology
- Precision agriculture: Spain is rapidly adopting advanced technologies such as soil sensors, drones and automated irrigation systems.
- Research centres: There are numerous agricultural research centres in Spain, such as the National Institute for Agricultural and Food Research and Technology (INIA).
Sustainability and ecology:
- Organic farming: Spain is the leader in Europe in terms of surface area dedicated to organic farming, with more than 2 million hectares certified.