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The futureof agriculturein Spain

Higher quality food

Index

Trends

A strategic sector

Impact of COVID-19

SWOT

Background

Team

Background information about agriculture

01

Growth over the years

Agriculture was the most important sector for the economy in the twentieth century.The sector was characterized by poor modernization and mechanization, unequal land distribution, and poor yields.However, small signs of development in the agricultural sector were beginning to be felt, resulting from a significant growth in agricultural production.

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This change was due to the increase in cultivated area and the elimination of fallow, as well as the importance of livestock farming, the spread of new agricultural techniques, and the diversification of crops.

The sector currently

Traditionally, Spain has been an eminently agricultural country, although gradually, Spain has witnessed a progressive loss of importance of this primary sector.

As a result of this reduction, the weight of the sector's GDP relative to total GDP has gone from 60 per 100 in the early years of the 20th century to 4.2 per 100 in 1995 and 2.65 by 2019.The modernization experienced over the years and the incorporation into the European Economic Community have influenced the transformation of the Spanish agricultural sector.

A strategicsector

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In the economy

Spain is the country with the highest proportion of agricultural GDPin the European Union (2.7% in 2017), as well as the country with the highest agricultural diversity. In addition, it’s the country's second most lucrative industry, very close to tourism, with a contribution of 10.6% to GDP and 14.2% to employment.

In society

In 2017, the Spanish agricultural sector employed, just directly, more than 749 thousand people, generating a plant production of more than 25,300 million euros

In the territory

Given an international perspective, Spanish agricultural production is relevant at a global level.The Spanish export of fresh fruits and vegetables until October 2020, the last month for which official data are available from the Customs and Special Taxes Department of the Tax Agency, stood at 10.3 million tons, 4% less than in the same period in 2019, reaching €11,861 million, up 9%, due to the pandemic caused by COVID-19.

Trends inthesector

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Sustainable agricultureis synonymouswith food security

ClimateChange

Climate change will affect how certain resources are produced and the quantities available.

DemographicChange

This change will influence the evolution and functioning of the activity.

ConsumerDemands

Trends and their influence on consumers also directly affects production.

Currently, in Spain, two-thirds of the territory is at risk of desertification. In addition, farmers notice a considerable increase in pests and diseases on their farms.

This is an opportunity for increased population and increased demand. But, on the other hand, it will be a challenge, because of the need to guarantee generational replacement and to get the activity to continue over the years.

The trends shows that consumers are more conscious of fresh, fertilizer-free products taken from 'farm to tables', which causes farmers to change their farming styles.

The technologicalrevolution

In the agricultural sector

The technological revolution is changing the world including, of course, the primary sector.In the short term, technological advances will increase productivity, reduce costs and improve farmers' profitability. In the long term, progress will be the only way to meet future food demand and reduce environmental impact.

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This evolution is obvious when comparing the processes and tools used by agriculture just a few decades ago with those it uses today

Machinery inagricultural work

Sensors and cameras that allow you to track production in real time

The future of agriculture will happen through a digitalization of the production process.

The impact ofCOVID-19

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Transport control

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Borders closing

European aid to the agricultural sector

Due to mobility restrictions caused by Covid-19, entry into the country was reduced to essential products. Along with massive purchases, it made farmers need to adapt quickly to rising demand.

Most people have and have had vetoed movement to other countries or ours, which has seriously harmed those farmers who needed the foreign labor they receive each season.

Brussels has announced that it will offer loans of up to 200,000 euros with low interest rates and repayment schedules tailored to every need.

SWOT

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Weaknesses

Threats

Aspects that limit the development capacity of the business strategy, which poses a threat that must be controlled and overcome

The full force of the environment that can prevent the implementation and execution of the strategies. It can reduce its effectiveness, increase risks, etc.

Strengths

Opportunities

Everything that is a competitive advantage for a company over the sector, to improve figures, improve profitability, etc.

Competitive capabilities, resources, and advantages over the sector which is an opportunity to exploit these strengths

The Spanish agricultural sector has a very automated business structure and there is little coordination between the agents that make it upIt's very dependent on public aid PACLittle investment and innovation of production processesProblems with generational work. Producers are older and do not have "heirs" to handle long-term production

R&D shortage in agricultureEasy entry for new competitorsOscillation of international pricingLow capacity for fixation of pricing

Favorable weather conditionsPossibility to grow different types of cropsSpain is one of the leading countries in the EU in the agricultural fieldHigh quality and safety standards

Growing global demand for foodAdvances in technologyInnovations can attract young and trained workers

Team

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Susana GarcíaTécnico agricultor

Sergio moralTécnico agricultor

Thank you!