World Grain -- December 2015 - (Page 22)

COUNTRY FOCUS Focus on Spain Country is by far Europe's largest producer of genetically modified crops by Chris Lyddon Spain's demand for grain outstrips its supply, making it a major customer for other E.U. countries, in particular. As an E.U. member its farm policy is subject to Europe's Common Agricultural Policy, but its attitude to biotech differs to other European countries, with large-scale production of Bt corn, which makes it by far the biggest European producer of biotech crops. In its latest Grain Market Report, the International Grains Council (IGC) put Spain's total grain production in 2015-16 at 18.5 million tonnes, down from 19.7 million the year before. It includes 6.2 million tonnes of wheat, down from 6.5 million. The maize crop is put at 4 million tonnes, down from 4.8 million tonnes and the barley crop at 6.7 million tonnes, down from 7 million. Spanish rye production is put at an unchanged 300,000 tonnes. The IGC put Spanish durum wheat production at 700,000 tonnes in 2015-16, down from 800,000 the year before. In an analysis of the Spanish market, British Cereal Exports, the export promotion arm of the U.K.'s AHDB Cereals & Oilseeds (formerly known as the HGCA), forecast Spain's wheat imports at approximately 5.5 million SPAIN tonnes in 2015-16, with barley imports at approximately 864,000 tonnes. An attaché report published in July considered the growing season and how it had adversely affected the crops. "Good yields were expected for most of Spain's grain growing regions until early May when high temperatures and lack RI SUHFLSLWDWLRQ VLJQL¿FDQWO\ UHGXFHG KDUYHVW expectations," it said. "Spain's central plateau was most affected by the hot weather as the winter crop cycle had almost ended when the unusually high temperatures withered the grains in the south. Some northern grain growing regions expect average yields U. K. NETH BELGIUM LU SWITZE FRANCE PORTUGAL 22 Key Facts Capital: Madrid Population: 48,146,134 (July 2015 est.) Religions: Roman Catholic 94%, other 6%. Location: Southwestern Europe, bordering the Mediterranean Sea, North Atlantic Ocean, Bay of Biscay, and Pyrenees Mountains; southwest of France. Government: Parliamentary monarchy. Chief of state: King Felipe VI (since June 19, 2014); head of government: Prime Minister Mariano Rajoy (since Dec. 20, 2011). Economy: After experiencing a prolonged recession in the wake of the global financial crisis that began in 2008, in 2014 Spain marked the first full year of positive economic growth in seven years, largely due to increased private consumption. At the onset of the global financial crisis Spain's GDP contracted by 3.7% in 2009, ending a 16-year growth trend, and continued contracting through most of 2013. In 2013, the government successfully shored up struggling banks - exposed to the collapse of Spain's depressed real estate and construction sectors - and in January 2014 completed an E.U.-funded restructuring and recapitalization program. Until 2014, credit contraction in the private sector, fiscal austerity, and high unemployment weighed on domestic consumption and investment. The unemployment rate rose from a low of about 8% in 2007 to more than 26% in 2013, but labor reforms prompted a modest reduction to 23.7% in 2014. High unemployment strained Spain's public finances, as spending on social benefits increased while tax revenues fell. Public debt has increased substantially, from 60.1% of GDP in 2010 to more than 97% in 2014. Exports were resilient throughout the economic downturn and helped to bring Spain's current account into surplus in 2013 for the first time since 1986, where it remained in 2014. Rising labor productivity and an internal devaluation resulting from moderating labor costs and lower inflation have helped to improve foreign investor interest in the economy and positive FDI flows have been restored. The government's efforts to implement labor, pension, health, tax, and education reforms have become overshadowed by political activity in 2015 in anticipation of the national parliamentary elections. Spain's 2015 budget, published in September 2014, rolls back some recently imposed taxes in advance of the elections and leaves untouched the country's valueadded tax (VAT) regime, which continues to generate significantly lower revenue than the E.U. average. Spain's borrowing costs are dramatically lower since their peak in mid-2012, and despite the recent uptick in economic activity, inflation has dropped sharply, from 1.5% in 2013 to nearly flat in 2014. GDP per capita:  $33,700 (2014 est.); inflation: -0.2% (2014 est.); unemployment: 24.5% (2014 est.). Currency: Euros (EUR): 0.94 euros equal 1 U.S. dollar (Nov. 23, 2015). Exports: $317.3 billion (2014 est.): machinery, motor vehicles; foodstuffs, pharmaceuticals, medicines, other consumer goods. Imports: $337.9 billion (2014 est.): machinery and equipment, fuels, chemicals, semi-finished goods, foodstuffs, consumer goods, measuring and medical control instruments. Major crops/agricultural products: Grain, vegetables, olives, wine grapes, sugar beets, citrus; beef, pork, poultry, dairy products; fish. Agriculture: 3.2% of GDP and 2.9% of the labor force. Internet: Code: .es; 35.5 million users. Source: CIA World Factbook December 2015 / World Grain /

Table of Contents for the Digital Edition of World Grain -- December 2015

World Grain -- December 2015
Table of Contents
From the Editor-in-chief - Milling differs from Warren Buffett
Calendar of Events
Second Oilseed Congress scheduled for Feb. 9-10
News Review - Tiger pulls financial support from Dangote Flour Mills
European Parliament rejects national GMO bans
Olam 3Q operational earnings up
Wilmar’s oilseed, grain segment earnings surge
Ardent Mills stake to stay with ConAgra Brands
Noble Agri reports loss in quarter
The Andersons reports loss on Grain Group decline
IGP Institute names interim associate director
Cargill’s new South Korean feed mill is its largest in the world
ADM opens two plants in China
GSFMO privatizes its flour mills
GrainCorp 2015 earnings down
Tiger Brands year-end earnings offset by international operations
Cargill makes executive leadership changes
Glencore agricultural production up
Grain Market Review - Oilseeds
Country Focus - Spain
Feature - Going from margin to mainstream
Feature - Record Turnout in Dubai
Feature - IAOM takes show to Indonesia
Feature - Indonesia's milling giant may expand
Indonesia in numbers
Feature - An end to the bear market?
Feature - Big turnout expected for IPPE 2016
Feature - Shaping the global feed industry
Feed Operations - Bucket elevator selection and installation tips
Supplier News
Product Showcase
World Grain Archive
Ad Index/Reader Information Form International Faxback Program

World Grain -- December 2015