Created on March 29, 2021
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A strategic sector
Impact of COVID-19
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.
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 future of agriculture will happen through a digitalization of the production process.
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.
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.
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 up
- It's very dependent on public aid PAC
- Little investment and innovation of production processes
- Problems with generational work. Producers are older and do not have "heirs" to handle long-term production
- R&D shortage in agriculture
- Easy entry for new competitors
- Oscillation of international pricing
- Low capacity for fixation of pricing
- Favorable weather conditions
- Possibility to grow different types of crops
- Spain is one of the leading countries in the EU in the agricultural field
- High quality and safety standards
- Growing global demand for food
- Advances in technology
- Innovations can attract young and trained workers