Changes brewing in Spain's beef market

For Spain's beef market, consumer decision-making is determined by the economic environment, consumer lifestyles and trends, according to Bord Bia Madrid Manager, Cecilia Ruiz.

The global economic crisis had increased the number of consumer visits to supermarkets, lowered total spending, and causing consumers to become more price-driven and less loyal to a specific brand, product line or retailer.

About 62.3 percent of beef consumers plan their beef purchase before leaving home, but may change their choice when facing offers at the point of sale, said Ruiz.

In Spain, 50 percent of beef sales are via traditional butchers, which is now a fading business due to a lack of interest in taking over the family business or lack of means to get resources to start or buy a business.

There is a strong consumer preference for domestic beef but it is unclear how much consumers are willing to pay for it. Retailers want to offer Spanish beef but it is also unclear if they are willing to offer it at a discounted price, which would attract consumers. In many cases, Spanish intensive production system is unable to compete with imported product.

Spain is self-sufficient in beef but a lack of profitability in the sector will threaten the self-sufficiency in the medium-term.