January 24, 2014

According to the data from Spain's Ministry of Agriculture, Food and the Environment (MAGRAMA), the country's meat prices in 2013 grew steadily as the economy crawled out of recession in the second half of the year.

Prices of category E pork (55%-59% leanness) rose by 11.4% on-year to €1.936/kg (US$2.65/kg), 10.3% higher than the average prices in the EU; while prices for AR3 category beef (from 10-month-old to 18-month-old bulls) were higher or similar to the levels in 2012.

MAGRAMA said that profitability in meat products improved notably, particularly for pork, beef and rabbit meat products. The ministry also said that 2013's lower global commodity prices led to falls in the cost of raw materials for animal feed, which helped improve meat producers' profitability.

As Spain's economy is still weak, the development of the country's meat exports remains a priority. The country ships about 20% of beef and 25% of pork abroad, with the major markets in France, Portugal, China, Germany, Russia, Hong Kong, Britain, the Netherlands and Japan. However, Spain's shares of meat exports in total production are much lower compared to many competitor EU countries.

José Manuel Alvarez, spokesman for Oficina de Exportación de la Carne de Espana (OECE), Spain's meat industry's export development and promotional body, said that Spain sees export potential in other markets, including Poland, Brazil, Mexico, the United States and Singapore, while the priorities for development will be the markets in Brazil, China, Japan, Mexico, Russia and South Korea.

"In the medium term, we consider growing global meat consumption to be favourable, especially for fresh products in south-east Asia," Alvarez said.