This year, pork production is expected to have another growth of 1.5-2 percent, considering such factors as total slaughters, higher competition in China and global pork demand.

Domestic pork consumption (real consumption as there is no private storage) slightly increased following a downward trend during the last years, due to higher demand in restaurants and tourism. Domestic consumption may continue this upward trend in 2018, the USDA-FAS report said.

Pork exports of Spain, a major pig-producing country in Europe, are the driving force behind production increase in the last three years. As Spanish meat consumption stabilises, Spain has to export 50% of its pork production.

As a net exporter of pork, Spain in 2016 shipped out 2 million centum weight (200 million pounds) or 17.5% more than the previous year. Year-to-date (January-October 2017) Spanish pork exports remained stable in volume terms, showing a 4.5% increase to the EU and 6.3% decrease to third countries due to the drop of Spanish pork exports to China.

However, year-to-date pork exports in value terms increased 14.6% following the upward trend of the last years, reaching almost US$4 billion in the first 10 months of 2017.

According to the Spanish pork industry, Spanish pork exports are estimated to remain stable this year. Higher world pork production and stronger competition with the US and Brazil may reduce the Spanish pork exports outside the EU in 2018, the USDA-FAS report said.

Spanish beef production, meanwhile, continued to grow up to 1% in the first 10 months of 2017 reaching record levels, according to the latest official data from MAPAMA. In 2016 beef production increased 1.7% year-on-year to 657,000 tonnes. Thus, in 2017 beef production may grow following the recovery started in 2014-2015.

According to the Spanish cattle and beef industry, 2018 may continue this upward trend, increasing beef production by 0.5% due to the growth of cattle herd for export markets.

In 2017 Spanish domestic consumption of beef grew and will likely increase slightly in 2018 due to the growth in restaurants and tourism. 

Spain is also a net exporter of beef, and its beef exports have followed an upward trend over the past three years both to the EU and to third countries.

Year-to-date (January-October 2017) Spanish beef exports continue to grow to third countries due to high demand from Algeria and Hong Kong. The Spanish beef industry is also focused on new strategic markets.

According to the beef industry, priority markets in 2018 are Asia, especially China, Vietnam and the Philippines; the Middle East; and North Africa. In 2016 Spain opened the Indonesian market, which led to significant, rapid growth, the report said.  Rick Alberto