by PressFAS analysts: Spain to increase grain imports in the 2023-2024 season
Spain will have to increase grain imports due to the drought
For the second season, Spain is suffering from a severe drought that has seriously affected agricultural production and stocks. The authorities have therefore decided to significantly increase grain imports to meet domestic demand. To implement this plan, a new delivery mechanism has been put in place to ensure a simplified process for transporting products from the port directly to the end user.
Spain is the largest purchaser of grain in the European Union. The country imports around 70% of the EU’s total supply. Analysts at FAS predict that the country could face a more severe shortage than usual in the 2023-2024 season. Even if domestic demand falls slightly, this will not improve the situation due to a sharp drop in production. Imports into Spain are expected to exceed 20 million tonnes of grain, keeping local ports at full capacity. The government is focusing on improving unloading and transport processes for further storage of products. This will make it possible to supply even remote regions of the country with grain in a timely manner.
Grain production and consumption in Spain
According to the ministry, Spain has a total area of 5.2 million hectares under cultivation. Despite the relatively large area under cultivation, yields were at a record low last season. The country has experienced minimal rainfall since the early months of the year. This was exacerbated for farmers by high temperatures in mid-May. Winter crop production was also lower than usual. In addition, corn and rice plantings were reduced. All these factors resulted in a harvest of just under 12 million tonnes.
As for grain consumption, this season’s figure will be close to 35 million tonnes. Which is 0.3 million tonnes less than the previous season. Animal feed accounts for about 75% (26 million tonnes) of total consumption. In addition, Spain produces bioethanol, the main component of which is grain. More than 1 million tonnes of crops are used in this segment. Analysts expect bioethanol production to shift mainly to corn as the country’s harvests deteriorate.
Analysts believe that the country’s ending stocks will increase. Despite the very unfavourable crop production forecasts. This is because farmers will expect grain prices to rise and will not actively sell their produce.
It is not yet known who will be the main importer for Spain. It is likely to be European producers.