World Grain - December 2010 - 22

COUNTRYFOCUS

Focus on Spain
Country is heavily dependent on
grain imports, continues to see
consolidation in its milling industry
by Chris Lyddon

Spain is one of the largest countries in Europe, but its southerly
position and widespread poor soils mean that a relatively small
proportion of its area is good quality arable land. For this reason it
must import much of its grain, either from its northern European
neighbors in the E.U. or, when it's been available, from the Black
Sea region.
The International Grains Council (IGC) puts Spain's 2010-11
total grain crop at 18 million tonnes, compared with 16.2 million
the year before and 23.1 million in 2008-09.
IGC estimates Spanish wheat production at 5.4 million tonnes,
up 4.8 million from in 2009-10, but again down from 6.7 million
in 2008-09. Spain's maize (corn) production is put at 2.9 million
tonnes, down from 3.1 million in 2009-10. Barley production is
estimated at 8.3 million tonnes, up from 7.1 million. It also produces some 200,000 tonnes of rye.
As a member of the E.U., Spanish agriculture operates under the
mechanisms of the E.U.'s Common Agricultural Policy (CAP).
Rosa Aguilar, minister for the Environment,
Rural and Marine Affairs, has vowed publicly to defend the interests of Spanish agriculture in the reform discussions which are still
in their very early stages.
According to a government statement on
the minister's recent appearance before the
lower house of parliament, the Spanish government believes that the CAP is essential
for sustainable development in rural areas,
and its reform "will establish the basis for
the coming
th
i decade of a strategic sector for the Spanish
economy such as food and agriculture."
She was speaking shortly before the European Commission was due to make its statement on the CAP reform. French and German ministers have already come
out with their position papers ready for the negotiations which are
expected to keep European farm ministers busy for the next two
years and to require an eventual decision from heads of government. Rosa Aguilar announced that "she will be working with
FRANCE

PORTUGAL

SPAIN

ALGERIA

Key Facts
Capital: Madrid
Population: 46,505,963 (July 2010 est.)
Religions: Roman Catholic 94%, other 6%.
Location: Southwestern Europe, bordering the Bay of
Biscay, Mediterranean Sea, North Atlantic Ocean, and
Pyrenees Mountains, southwest of France.
Government: Parliamentary monarchy. Chief of state: King
Juan Carlos I (since Nov. 22, 1975); head of government:
President Jose Luis Rodriguez Zapatero (since April 17,
2004).
Economy: Spain's mixed capitalist economy is the 12th
largest in the world, and its per capita income roughly
matches that of Germany and France. However, after almost
15 years of above average GDP growth, the Spanish economy
began to slow in late 2007 and entered into a recession
in the second quarter of 2008. Spain's unemployment rate
rose from a low of about 8% in 2007 to more than 19%
in December 2009 and continues to rise. Its fiscal deficit
worsened from 3.8% of GDP in 2008 to about 7.9% of
GDP in 2009, more than double the European Economic
and Monetary Union limit. GDP contracted by 3.6% from
2008, ending a 16-year growth trend. The economy is
projected to resume modest growth late in 2010, making
Spain the last major economy to emerge from the global
recession. The reversal in Spain's economic growth reflects a
significant decline in the construction sector, an oversupply
of housing, falling consumer spending, and slumping
exports. Government efforts to boost the economy through
stimulus spending, extended unemployment benefits and
loan guarantees have not prevented a sharp rise in the
unemployment rate, which was the highest in the E.U. in
2009. Spain's banking sector has been relatively insulated
from the global financial crisis, due in part to conservative
oversight by the Bank of Spain. Government intervention to
rescue banks on the scale seen elsewhere in Europe in 2008
and 2009 was not necessary in Spain, although Spanish
banks' high exposure to the collapsed domestic construction
and real estate market poses continued risks for the sector.
The government intervened in one regional savings bank in
2009, and others have merged out of necessity.
GDP per capita : $33,600 (2009 est.); inflation: -0.8%
(2009 est.); unemployment 18% (2009 est.).
Currency: Euros (EUR); 1 euro equals 0.7338 U.S. dollar
(Nov. 15, 2010).
Exports: $226.8 billion (2009 est.): machinery, motor
vehicles; foodstuffs, pharmaceuticals, medicines, other
consumer goods.
Imports: $290.4 billion (2009 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: 3.3% of GDP and 4.2% of the labor force.
Internet: Code. .es; 3.822 million (2010) hosts and 25.24
million (2008) users.
Source: CIA World Factbook

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