World Grain - May 2022 - 18

COUNTRY FOCUS
COCERAL also put 2022 rapeseed production at 240,000
tonnes, up from 226,000 in 2021, with sunflower seed output
at 786,000 tonnes, up from 774,000, while the soybean
crop is forecast at an unchanged 11,000 tonnes. Total
oilseeds production in 2022 is forecast at 1.037 million
tonnes, up from 1.011 million in 2021.
In a report from July 30, 2021, the USDA attaché in
Madrid said that " after a long-term decline trend with tree
crops competing with arable land, Spain's area planted to
grains has stabilized around 5.8 million hectares. "
" Compared to the previous season, area planted to wheat
has increased, minor grains (rye, oats, mixed grains, and
sorghum) area remained stable compared to the previous
season, whereas barley area is below previous year's levels, "
the report said. " In the case of corn, which is mostly
grown under irrigation, the combination of sufficient levels
of storage water, improved margins, and the extensive
use of corn as a second crop, especially in the Ebro Valley,
have resulted in a slightly larger area. "
The attaché forecast Spain's total 2021-22 grains production
at nearly 36 million tonnes, close to the previous
year's level.
" Animal feed is Spain's primary grain destination, accounting
for over 75% of the country's demand, " the attaché
said. " In 2021-22, Spain's feed grain consumption
hinges on livestock products demand in key export markets
like China, the status of outbreaks of animal diseases
in other EU Member States, and the pace of recovery in
the hospitality sector as public-health related restrictions
are lifted.
" In 2019-20, grain usage was severely affected by the
COVID-related strict lockdown that limited in-country
consumption of value-added HRI (Hotels, Restaurants, and
Institutions) oriented livestock product. In 2020-21, the
still low HRI activity, combined with the ample pasture
availability, prevented the record feed production levels
registered in 2019 from being repeated. "
While struggling with the commodity prices surge, the
export-oriented swine sector coped better with the sanitary
crisis than HRI-oriented producers, managing to offset to a
certain extent the reductions in the internal market caused
by the slowdown in HRI activity and the lack of tourists,
the attaché said.
" Industry sources report that in 2020-21, the pandemic
resulted in a related increase in retail sales of grain-based
food products despite the reduction of sales through HRI
channels and tourism, " the attaché said.
Flour milling
According to the Spanish flour millers' association AFHSE
(La Asociación de Fabricantes de Harinas y Sémolas de España),
citing data collected Dec. 31, 2019, the sector has
101 active flour mills and eight semolina plants. The association
described the sector as being almost entirely made
up of small- and medium-size family businesses, often go18
Spain
cereals market overview
(in US thousand dollars)
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
2018
2019
Total local production
Total imports
2020
2021
Total exports
Total market size
ing back several generations. Around 80% of the mills are
in rural areas and they employ some 3,000 people.
AFHSE cited National Statistics Institute (Instituto Nacional
de Estadística, INE) figures putting 2019 flour production
at 3,598,068 tonnes, 22% higher than in 1995.
AFHSE described the rise as progressive but not linear,
putting it down to more efficient use of production facilities.
The flour produced is mainly for the domestic market,
although the association said the industry does have the
capacity to supply export markets.
Exports have fallen over time, from 6% to 7% in the
late 1990s and early 2000s, to 4% of production in 2019.
AFHSE explained that the fall, a similar trend to other European
countries, is due to an increase in processing capacity
in developing countries, which means that they have
replaced purchases of flour with wheat. It also said that
Spanish domestic consumption of flour has trended upwards
in recent years.,
Agricultural policy
Spain's fuel ethanol production fell from a peak of 547 million
liters in 2019 to 480 million in 2021. The COVID-19
pandemic resulted in reduced consumption of ethanol as
fuel, while the conflict in Ukraine is impacting the availability
of corn for the sector.
Spanish agricultural policy forms part of the European
Common Agricultural Policy, which will operate in a reformed
version from the start of 2023. The changes give
the Member States of the European Union much greater autonomy
through the CAP Strategic Plans each has to draw
up. Spain submitted its 3,381-page plan on time, by the end
of 2021.
Spain's plan, according to the strategic statement it includes,
" aims at the sustainable development of the agriculture,
food and rural areas to ensure the food security
of society through a competitive sector and a living rural
May 2022 / World Grain / World-Grain.com
Source: Trade Data Monitor, Inc.; USDA FAS
http://www.World-Grain.com
World Grain - May 2022

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