March 30, 2010

High production costs cause decline in Spain's beef production

Dependent on imported animals and on expensive intensive feeding costs, Spain's beef production has been decreasing progressively over recent years.

Meanwhile, beef imports in 2009 increased by 23% and exports decreased by 29%.

A traditional reluctance to import beef is diminishing if it offers a good price-quality relationship relative to domestic product. This has seen Spanish beef imports rise by more than 30,000 tonnes since 2005 to reach 125,000 tonnes product weight in 2009.

These developments highlight potential growth opportunities for Irish beef on the Spanish market. Ireland represents 12% of Spanish beef imports with volumes in 2009 standing at around 14,000 tonnes. This leaves Spain as the 5th most important market for Irish beef on the continent. In addition, Irish exports of live cattle to Spain have averaged more than 50,000 head since 2005.