Spain

In Spain, agricultural prices and production have faced significant challenges in recent years. While production costs soared in 2022, largely driven by fertilizer and energy price increases, these costs saw a decrease in 2023, though they remained high. Farmers, however, continue to struggle with rising wage costs and other operational challenges, exacerbated by droughts and inflation. The government’s support, including subsidies and agricultural aid, has been crucial to mitigating some of these pressuresAGROBERICHTEN BUITENLAND.On the production side, Spain’s agricultural output dropped by 3.4% in 2023, due to a decrease in production volume, particularly in sectors like olive oil, where production fell by as much as 59%. However, this decline was somewhat offset by a rise in prices, which increased by 9.4%AGROBERICHTEN BUITENLAND. Additionally, while the Spanish agricultural sector has benefited from certain government support measures, including the EU’s Common Agricultural Policy (CAP), challenges remain in meeting environmental and digital goals under these programsAGROBERICHTEN BUITENLANDING THINK.Exports, which are a significant part of Spain’s agricultural economy, also faced setbacks in 2023. The country experienced a 10% drop in export volumes, despite an 8% rise in export value. This was largely due to lower foreign demand and the impact of adverse weather conditions, affecting key exports like meat, citrus fruits, and vegetablesING THINK. These trends are expected to persist into 2024, as producers anticipate another tough year for both domestic and international markets.