Spain

Spanish beef sector faces uncertainty

Beef

Consumption is down, while production costs are getting higher.

Posted on Jun 20 ,09:45

Spanish beef sector faces uncertainty

The Spanish beef industry is currently facing a difficult situation. On the one hand, the increase in production costs due to higher prices for raw materials and inputs, increases in the price of electricity and energy, as well as labor, have also been aggravated by the inflationary trend of recent months and are stressing the distribution chain, and generating uncertainty in the sector in the short and medium-term.

One of the main consequences of this situation is the verification of the drop in the consumption of beef, due to the high cost of the product and the diversion towards other products, such as pork; in addition to the decrease in production also caused by the conjunction of all these factors, which could become evident as of the third quarter.
The few expectations of recovery are placed on the summer season, with the reactivation of tourism and the hotel industry, although it is expected that in autumn the situation will worsen again and become more complex, according to a note released by the ANICE Beef Group.
On the other hand, beef exports are rising due to increased demand in international markets. In 2021, 243,612 tonnes of beef worth more than €943 million were exported, which represented a growth of 4.6% in volume and 16.5% in value compared to the previous year.

The latest data available so far corresponding to the first four months of the year also reflects growth in beef exports, with more than 59,000 tonnes exported, up 7.51% compared to the same period in 2021. Although its largest market is in the European Union, where almost 90% of sales are directed, Spanish beef continues to gain presence in third countries, with destinations such as Canada, Indonesia and the United Kingdom standing out. "Although current expectations are good and exports continue to grow, efforts must be made in the medium term to focus on opening new destinations and diversifying markets," ANICE Beef Group pointed.

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