Market Information
Europe

Agriculture, Agri-Food and Seafood Country Report - Spain

January 2004

Report prepared by Adele Deschamps and Lynn Weisenburger
Analysis of International Markets Team
Agriculture and Agri-Food Canada
#720, 9700 Jasper Avenue, Edmonton, AB T5J 4G5
Phone: (780) 495-5527
Fax : (780) 495-3324
Email : weisenburgel@agr.gc.ca

Executive Summary

Spain is a leading European and world economy. The country's economic production is dominated by its services industry, which comprises nearly two-thirds of its GDP. Tourism is a large component of the Spanish services industry, which results in a high demand for quality food and beverages in the hotel and restaurant sector. The income level of Spanish workers, however, is the third lowest in the European Union, which indicates a lower domestic collective buying power than most other EU states. Income levels vary by Autonomous Community, as well as season, which suggests that certain products may be better suited to various geographic locations or seasons.

There is much diversity present within Spain, which may create niche market opportunities for Canadian exporters. The traditional Spanish consumption and shopping behaviour is beginning to shift, with a more convenience-based, healthy-eating attitude emerging. As Spain shifts away from the Mediterranean diet and more North American eating habits are adopted, opportunities for Canadian companies to supply more North American style processed products may arise.

Spain enjoys free trade within the European Union and imports most of its agriculture, agri-food and seafood products from other EU member states. Currently, Canada only accounts for a very small portion of Spain's agriculture, agri-food and seafood import market share. Canada supplies primarily lentils and other bulk products to Spain; consumer products are only a minute portion of the small amount Canada exports to Spain. Canada has, however, been exporting an increasing amount of fish and seafood products to Spain, as domestic catches are being supplemented with imports in order to meet consumer demand. It is unknown what the long term effects will be of the increasing EU fishing quotas, the oil spill and a shift away from the Mediterranean diet on fish consumption in Spain, but in the short term, there may be opportunities for Canadian companies to export fish and fish products to Spain that are traditionally domestic catches.

I. Introduction to Country Market

Spain has been a member of the European Union (EU) since 1986. It has an area of 504 750 km2 (a little larger than the Yukon), and a population of 41 million (2002), which has remained relatively stable over the last 5 years. Spain is divided into 17 Autonomous Communities, and in turn, divided into 50 provinces, each with its own capital city. Madrid is the largest city and the capital of Spain, with a population of 3 million (2002).

Spain adopted the Euro as its only currency on January 1, 2002, prior to which the peseta was used. The Euro has been appreciating relative to the Canadian dollar (on an annual average) since it was introduced in 1999. In 2002, the average annual exchange rate was $CDN 1.4832 per Euro.

Social Overview

Spain's official language is Castilian Spanish which is used predominately throughout the country; however, Catalan, Galician, Euskera (Basque), Valencian and Majorcan also have official language status. Nearly all of Spain's population is at least nominally Catholic (94%).

Economic Overview

Spain has the fourteenth largest GDP in the world and the fifth largest GDP in the EU. Spain's economy has experienced a slow growth period due to the overall slowdown of the European and US economies since 2001; GDP growth dropped to 2.1% in 2002, from 2.7% in 2001, but is expected to increase to 3.5% in 2003. Spain's GDP remains the fastest growing out of the large EU economies, and although GDP growth declined in 2002, it was still double the EU average.

Note: economic statistics reflect Canadian dollars yearly averages for 2002.

The services sector, mainly the areas of tourism, finance and banking, transport and telecommunications, dominates the Spanish economy and accounted for 66% of GDP in 2002. Refer to Table 1.2 for a breakdown of GDP by sector.

Even though Spain is one of the world's top industrial producers, it struggles with chronic unemployment. The country has the highest unemployment rate in the EU at 11.4%, which has decreased considerably from over 20% in 1996. Job creation continues to be the main goal of the Aznar government's economic policy, and, as a result, Spain has the highest job creation rate amongst the Euro States with 256,000 jobs being created in 2002. Job creation continues to experience challenges, such as the taxation of labour, which acts as a disincentive, and regional housing shortages, which restrict labour mobility.

Infrastructure

The Spanish Government, together with EU funding, is heavily investing in the improvement of Spain's national infrastructure. The government has enacted the Infrastructure Master Plan, which aims to prepare Spain's infrastructure for the 21st century. It is estimated that when the plan is fully implemented, Spain's infrastructure will be comparable to other leading European economies. The Infrastructure Master Plan entails airport, highway, railroad and port infrastructure projects, as well as invests in the development of the telecommunications, environment and energy sectors.

Spain's infrastructure is relatively well-developed. Ground transportation consists of 15,171 km of railway and 346,858 km of highway. Spain's main international airports (by tonnage of merchandise traffic in 2001) are Madrid, Barcelona Vitoria, Gran Canaria and Málaga. Most international cargo, however, is transported to Spain by water. Spain has over 27 ports and harbours, which together imported nearly 240 billion tonnes of cargo from abroad in 2001. The main destinations for foreign imported cargo were the Bay of Algeciras (12%), followed by Tarragona (9%), Barcelona (8%), Bilbao (8%) and Cartegena (8%). In addition, Spain's communication infrastructure consists of 17.3 million main telephone lines (1999), 8.4 million mobile cellular phones (1999), and 7.9 million internet users. Electricity is readily-available in Spain and electrical production comes from three main sources: fossil fuels (57%), nuclear (28%) and hydro (12%).

The Aznar government is aiming to improve Spain's irrigation infrastructure by increasing the amount of irrigated land in Spain from the current 362,400 km2. This will be done by providing irrigation to the southern regions of Spain through diverting some of the river systems in the Catalan and Aragon regions. Irrigation expansion in Spain will likely change the production capabilities of the country.

Key Chapter Conclusions

• Spain is a leading EU and world economy. This implies that buying power is fairly high, that there is demand for value-added goods, and that economic risk is minimal.
• Spain's services-dominated economy results in a demand for high quality HRI food and beverage products due to the high level of tourism in the country.
• High unemployment in Spain may make some consumers more price-conscious.
• Access to high quality infrastructure allows for efficient transportation of goods.
• Readily available electricity together with the possession of household appliances, such as refrigerators and microwaves, opens the door for various products, such as frozen and chilled foods.
• As irrigation increases, an increased amount of, and possibly a changing variety of, agricultural production will result. This production may affect the import demand for certain agriculture and agri-food products.

II. Political Situation

Political Structure

The first democratic elections in Spain since 1936 were held in 1977, and the Constitution of 1978 established the country's political system as a parliamentary democracy with a constitutional monarchy. The current king, King Juan Carlos, ascended the throne in 1975 and acts as an overseer and arbiter of the parliament. The President of Spain, currently José Marìa Aznar, is proposed by the monarch and elected by the National Assembly. Elections occur every four years; the next elections will be in March 2004.

Political Forces

Political Parties

Spain has three main political forces that are supported country-wide, and several regionally supported political groups. The three parties with country-wide support are the centre-right Popular Party (PP), the centre-left Spanish Socialist Workers' Party (PSOE) and the Communist-led coalition, United Left (IU). The two most prominent regional parties are the centre-right Catalan Grouping, Convergence and Union (CiU), and the centre-right Basque Nationalist Party (PNV).

The Popular Party has been the governing party of Spain since 1996; however, in 2002, the PP's popularity began to decrease. Two major setbacks took place for the PP, a one-day general strike in June 2002, and the sinking of the Prestige oil tanker in November 2002. Concern is also growing over President Aznar's unwavering support for US policy in Iraq. It is unknown how these issues will affect Aznar's popularity and standing in the Spanish political spectrum.

The Basques

The 1978 constitution granted the Basque region autonomy, but many Basques have continued to call for greater decision-making authority. During its campaign for independence, the militant wing of the Basque separatist movement, Euzkadi ta Askatasuna (ETA), carried out bombings of Spanish government structures and economic targets, with approximately 800 deaths being attributed to the Basque separatist violence campaign.

In August 2002, the courts found evidence to link the Batasuna (the political arm of the Basque separatist party) to the ETA and its terrorist actions. The Batasuna was outlawed in March 2003, and in May 2003 over 1,000 Basque political candidates were removed from the May electoral lists. Tens of thousands of people in Bilbao participated in a demonstration organized by Udalbitza, the peaceful successor to the Batasuna party, against the cancellation of the candidates from the electoral lists.

The European Union

Spain joined the European Union (EU) in 1986, joined the Economic and Monetary Union (EMU) in 1999, and adopted the Euro as its only currency on January 1, 2002. Spain contains 12% of the EU's population, and produces 8% of its GDP. Spain plays a prominent role within the EU, and focuses on advancing its national interests, such as improving transportation infrastructure and water systems.

Key Chapter Conclusions:

• Spain has a democratically stable political system, which mitigates the risk of exporting.
• Some Autonomous Communities may have more political instability, and therefore more risk to exporters than others (e.g. The Basques).
• The popularity of centre-right political parties reinforces that capitalist ideas are predominant in Spain.
• Being a member of the EU allows exporters to follow the same export regulations for Spain as all other EU countries.
• Exports to Spain may be easily transhipped from destinations (e.g. ports) in other EU countries.

III. Country Income

With an average hourly cost of labour in the industry and services sectors of €14.22/hour in 2000, the cost of labour, wages and salaries in Spain were the third lowest out of the 14 EU Member States that completed the Community Labour Costs Survey. Refer to Figure 3.1 for a comparison of cost of labour levels among the EU member states.

Figure 3.1: Spain's Rank Amongst the EU Member States by Hourly Labour Costs in Industry and Services.

The average wage and salary earned by employees in Spain varies significantly by season. As outlined in Figure 3.2, the average hourly wage increases throughout each quarter, and then decreases significantly in the first quarter of the following year, although the average annual wage is consistently higher each year. The average monthly salaries, however, are consistently highest in the second and fourth quarters, possibly due to an increased employment level from the influx of tourists in the Christmas and summer seasons.

Figure 3.2: Seasonality of Wages and Salaries in Spain

The average monthly salary (in the industry, construction and service sectors) in the first quarter of 2003, was €1,412.52, which is an increase of 4.9% from the same period in 2002. Figure 3.3 shows the average monthly salary in each of Spain's Autonomous Regions during the first quarter of 2003. The region of Murcía had the lowest average monthly salary at €1139.26; whereas, Madrid had the highest monthly salary at €1736.59.

Figure 3.3: Comparison of the Average Monthly Salary per Worker in the Autonomous Regions.

The average hourly wage in Spain (for the industry, construction and services sectors) was €9.74 in the first quarter of 2003. In addition to having the highest average monthly salary, Madrid also had the highest average hourly wage compared to the other Autonomous Regions, at €11.74 per hour. In parallel, Murcía also had the lowest average hourly wage at €7.92 per hour. The minimum wage in Spain was €14.74 per day (€442.20 per month) in 2002, an increase of 2% from 2001.

The inequality of income distribution in Spain is considerably higher than the EU15 average. In 1999, the total income received by the 20% of the population with the highest income was 5.7 times more than the income received by the 20% of the population with the lowest income in Spain. On the other hand, for the EU 15, the income received by the 20% of the population with the highest income was 4.6 times more than the income received by the 20% of the population with the lowest income. In 1999, 18.4% of adults in Spain were considered to be living beneath the poverty line.

Key Chapter Conclusions

• Spain has lower wages than other EU member countries, which may indicate that prices of products need to be lower, compared to prices in other EU countries, so that they are affordable for Spanish consumers.
• Tourist seasons coincide with higher wage earning seasons. These seasons may be a good time to market higher-value products.
• Wages are increasing in Spain; therefore, buying power is also increasing.
• Wages and, therefore, purchasing power varies by region. Certain products may be better targeted to various regions based on their respective purchasing power.
• A large gap in income distribution exists in Spain. This could indicate that there are markets for both premium and "value-priced" products in Spain.

IV. Consumption/ Production

The average Spanish household spent 21.9% of their total expenditures on food and non-alcoholic beverages in 2002, and another 3.2% on alcoholic beverages and tobacco. The total volume of food consumption in Spain increased 1.5% from 2000 to 2001 whereas spending increased by 8.3% over the same period (to €61.44 billion); indicating an increase in the average price of food. Total food production in Spain was valued at €56.2 billion in 2001, an increase of 2% by value, but a decrease of almost 2% in volume.

In 2001, food consumed in the home accounted for 72.8% of food expenditures, food consumed in hotels and restaurants accounted for 25.3% of food expenditures and food consumed in institutions accounted for 1.9% of food expenditures. Spanish consumers have spent 73% of their total food purchases on food consumed in the home, and 27% on food consumed outside the home relatively consistently in the last five years (1996 - 2001).

Consumer Overview

The traditions associated with food purchases and consumption are beginning to change within Spain. Most Spanish consumers follow the "Mediterranean Diet", which consists of seafood, vegetables, fruits, olive oil, wine and salads. There is evidence, however, that the Mediterranean diet is slowly being replaced by North American eating habits, and that there exists a tendency to consume more prepared and ready-to-eat foods, diet products, low fat, low cholesterol and natural products.

The recent increase in the proportion of Spanish households with microwaves may also incite the consumption of more prepared and ready-to-eat foods. In 2000, approximately 54% of households had microwaves, an increase of nearly 10% from 1999. Nearly all Spanish households have refrigerators (99.46% in 2000).

Despite the shift away from the Mediterranean diet, Spain remains the world's second largest per capita consumer of fish and seafood products. In 2001, total fish consumption in Spain was 1.29 million tonnes. Due to an increase in demand and a decrease in domestic fish catches, Spain imported an increased amount of fish in 2001. Consumer demand for fish is largely determined by price. Fresh fish (53% of seafood consumed) is generally preferred over frozen products (34%) and canned and cured seafood products (13%). As catches decline in the future, prices are expected to increase which may decrease the consumption of fish products. However, Spanish consumers are now looking for healthy alternatives to beef, due to health scares caused by cases of BSE, which may increase the demand for fish and seafood products. Also, as the population of Spain ages, these consumers will likely increase their demand for healthier foods, including fish.

The traditional extended mid-afternoon lunch, which is the principal meal for many Spanish families, is becoming less common in large urban areas. Breakfast is the least important meal in terms of energy in South European countries, including Spain. In Southern European countries, however, no more than 15% of adolescents skip breakfast entirely, which is significantly lower than in the United States and other industrialized countries, where up to 30% of adolescents do not eat breakfast.

Due to various factors, including urbanization and an increasing number of women in the work force, Spanish consumers are now making a few trips per week to large supermarkets, instead of traditional daily purchases. It is expected that purchasing power will increase in the next few years, but the time spent shopping and preparing foods will decrease. Due to this change in lifestyle, it is anticipated that consumption habits will also change.

In general, Spanish consumers are health conscious, concerned about food safety and value quality. In accordance with these values, Spain's demand for organic products is increasing. Also, as a result of the outbreak of BSE in the EU, meat consumption has decreased and vegetarian meals have experienced considerable growth in Spain.

At Home Consumption

In 2001, Spanish consumers spent a total of €4.5 billion on food consumed within the home, a realized per capita annual spending of €1,105 per year (€92/month). The majority of Spanish consumers' food expenditures consisted of meat, fish and fresh fruit in 2001. Refer to Table 4.1 for a breakdown of per capita spending per product grouping.

Percent of At Home Food Expenditure

Products:

Meat: 24.5%
Fish: 13.9%
Fresh Fruit: 7.9%
Bread: 7.8%
Milk Prod: 7.1%
Fresh Veg./ Potatoes: 5.7%
Milk: 5.1%
Pastries: 3.9%
Oil: 2.2%
Prep. Meals: 2.2%
Soft Drinks: 2.1%
Prep. Fruits and Veg.: 1.9%
Wine: 1.9%
Eggs: 1.4%
Other: 11.3%

Spanish consumers also ate 1.5% more food in 2001 than in 2000, and 4% more food and beverages at home from 2000 to 2002. According to the Spanish Ministry of Agriculture, Fisheries and Food, the products with the greatest increase in consumption at home, from 2000 to 2002, were dried fruit (28%), frozen potatoes (26%), prepared meals (24%), olives (22%), other wines (not sparkling, table or VCPRD), and mineral water (20%). The products with the greatest decrease in at home consumption from 2000 to 2002 were house wines (-13%), sunflower seed oil (-12%), sparkling wines (-11%), and pulses (-10%).

Spain's Household Budget Surveys also show that the availability (quantity at any given time) within Spanish households of mineral water, stimulants, soft drinks, vegetable juice, bakery products, milk products, processed fruit, offals and meat dishes have increased from 1990/91 to 1998/99.

Spain's demand for healthy, prepared food has also risen, with the ready meal market in Spain valued at $567 million in 2000. Canned meals are currently the best selling prepared food; however, the demand is increasing for chilled and frozen meals.

In parallel, over the period of 2002 to 2007, the retail value and volume of the following products, which include frozen chilled and canned ready meals, are predicted to increase by over 20% in Spain. As demand for these food and beverage products increases, the capability of Canadian companies of supplying these products needs to be examined.

• Tea
• Canned fruit
• Canned vegetables
• Canned ready meals
• Chilled processed meats
• Chilled fish/seafood products
• Chilled/fresh pasta
• Chilled ready meals
• Frozen bakery products
• Frozen processed poultry
• Frozen processed fish/seafood products
• Frozen processed vegetables
• Frozen ready meals
• Cream
• Fromage frais and quark
• Dried ready meals
• Snack bars
• Sugar confectionery
• Gum
• Meal replacement products
• Dog and cat food
• Fruit/vegetable juice
• Bottled water
• Functional drinks

Regional Consumption

The realized at home per capita consumption of food/beverages within Spain was 640 kg in 2001; however, food consumption and expenditure varied significantly throughout the country. Figure 4.3 shows the variations by Autonomous Communities from the per capita national average of at home food consumption and expenditure. The Autonomous Regions with the highest per capita consumption in 2001 were the regions of Asturias, Baleares (Balearic Islands) and Navarra. The Autonomous Communities that consumed and spent the least on food per capita in 2001 were the regions of Extremadura, Canarias (The Canary Islands) and Castilla-La Mancha.

Figure 4.3: At Home Food Consumption and Expenditure within the Autonomous Regions.

Retail Food Sector

In 2001, total grocery sales through food distribution chains and groups were valued at €44.8 billion. The most grocery retail sales occurred in supermarkets (42.2%), followed by traditional grocery outlets (31.3%), hypermarkets (18.3%) and other grocery outlets (8.1%).

Although grocery purchasing habits are changing, many consumers still prefer to make frequent purchases of fresh products such as bread, fruit, seafood and meat products at local supermarkets and traditional fresh product outlets. Spanish consumers typically visit hypermarkets weekly or monthly to buy non-perishable products. Table 4.2 shows this trend as the greatest proportion of fresh food products are purchased from traditional grocery outlets, and the majority of dry food products are purchased from supermarkets and hypermarkets.

Supermarket sales of private label brands have increased considerably in the past few years in Spain. In 2000, private label sales for the major supermarkets totalled $6.7 billion, an increase of 18% from 1999. Private-label brands allow retailers to generate increased profits and to differentiate themselves from competitors. As the demand for private-label products increases, retailers are looking for new or unique products in nearly all product categories, predominantly canned vegetables.

Hotel, Restaurant and Institutional (HRI) Sector

Spain's food service sector is comprised of commercial food service outlets (hotels, restaurants, pubs/bars, discos, and cafés) and social food service institutions (cafeterias in schools, penitentiaries, hospitals, the army etc.). The commercial hotel and restaurant sector in Spain accounted for €1.56 billion and social institutions accounted for €120 million in food purchases in 2001. Combined, Spanish consumers spent 27.2% of their total food expenditures on food consumed in the HRI sector.

In 2001 there were 236,375 commercial hotel and restaurant food establishments and 25,179 institutional food establishments in Spain. There were also over 400,000 vending machines which generated revenues of €1.8 billion; approximately 37% of vending machines sold tobacco, 35% hot beverages, 21% cold beverages and 7.5% food products such as snacks and sandwiches.

Of the 236,375 food service outlets in Spain, it is estimated that 68.5% are cafés and bars (please note that a bar in Europe is the North American equivalent of a pub), 19.7% are restaurants, 3% are hotels, and 8.8% are other establishments including new restaurant industry establishments, discos and late night music bars. Bars and cafés accounted for 64% of total HRI food and beverage purchases in 2001, restaurants accounted for 29%, and hotels accounted for 7%. Figure 4.4 shows the percentages of the value and volume of food and beverage products consumed outside of the home in 2001. Half of HRI expenditures are on food products, while the other half are on beverages.

Figure 4.4: Values and Volumes of Food and Beverage Products Consumed Outside of the Home

Most alcoholic beverage sales in Spain occur in the HRI sector. Of Spain's total alcoholic beverage sales, hotels, restaurants and caterers account for 70% of quality wine sales, 50% of sparkling wine sales, 45% of table wine sales and 70% of spirit sales. In addition, two-thirds of beer in Spain is consumed through the HRI sector.

Spain is a substantial alcoholic beverage market for wine, spirits and beer. Spain is the fifth largest consumer of wine in the world. Although wine consumption has fallen over the past few decades, with annual per capita consumption now at 35.6 litres, demand for quality and special occasion wines rose to 7.9 litres per capita in 2002, and is expected to continue rising. Spain's immense spirit market was valued at $10 billion in 2002. Spain is the largest market for whisky in the world, with whisky accounting for over half of total spirit sales, followed by white spirits (14%), brandy and cognac (10.3%) and rum (9.9%). Spain also has a large beer market valued at $3.3 billion (2002). Specialty beer sales account for over half of total beer sales in Spain, followed by lagers (38%), and ales and stout beers (7%). The beer market grew by 6% from 2001 to 2002 and is expected to continue to grow through to 2006. An increase in health awareness amongst consumers is becoming evident in alcoholic beverage consumption, as consumers are purchasing more alcoholic beverages that provide health benefits, such as red wine and beverages with lower alcohol content. This trend is apparent as the non-alcoholic beer market is growing in Spain, with consumption of non-alcoholic beer reaching 200 million litres in 2002.

The substantial demand for alcoholic beverages in the HRI sector can be largely attributed to Spain's sizeable tourism industry. The HRI sector and tourism industry in Spain may present opportunities for Canadian exporters for niche alcoholic beverages such as quality and specialty wines (including ice wine), low-alcohol and non-alcoholic beer, whisky and flavoured rum drinks.

Tourism is a key component of Spain's HRI sector attracting approximately 50 million visitors annually. The influx of tourists to Spain during the summer months and Christmas season significantly increases the demand for high-value and consumer ready products from the HRI food sector. The large number of tourists within Spain, along with the fact that Spanish consumers are travelling more to other countries, is also increasing the demand for new products and increasing the appeal for ethnic foods and restaurants.

Ethnic restaurants have been experiencing substantial growth in the past few years, with restaurants offering Tex-Mex or American-style products experiencing the greatest amount of growth. Cafés are also experiencing considerable growth (19% in 2001), with approximately 45% of the coffee in Spain being consumed in the HRI sector. Growth in the fast-food sector, however, has declined substantially since 1998.

Production

Primary Crops

Spain's major primary crops produced in 2002 were barley (8.3 million tons), sugar beets (7.9 million tons), wheat (6.8 million tons), grapes (5.6 million tons), maize (4.4 million tons), olives (4.3 million tons), tomatoes (3.9 million tons), potatoes (3.1 million tons), and oranges (2.9 million tons).

Fish and Seafood Catches

Since Spain's inception into the EU in 1986, Spanish fisheries have been faced with fishing quotas, which have decreased domestic fishing stocks. Spain's catch quota for 2002 decreased 17% from 2001. Spain's domestic fish and seafood catches consist of blue fish, hake and whiting, cod, tuna, squid, octopus and mussels.

In November 2002, a vessel carrying over 20 million gallons of fuel oil sank about 150 miles from Spain's Atlantic coast, crippling the fishing industry in Galacia. The spill is anticipated to reach Spain's southern waters, where the world's largest mussel beds are found. This disaster is expected to have a significant impact on Spain's domestic fish and seafood supply for a number of years.

Food Processing Sector

The food processing industry in Spain is the fifth largest in the EU. Spain's food processing sector comprises 5.5% of Spain's GDP, produces approximately 20% of Spain's total industrial output, and employs 17% of the total work force. There were approximately 36,970 food and beverage processing plants in Spain in 2001, which generated product valued at €56.2 billion. The total processed food production in 2001 increased in value by 2% from 2000, but decreased in volume by almost 2%; thus indicating an increase in the average price per product. The increased average price of processed goods can be explained partially by inflation and partially by an increase in value-added product attributes (e.g. diet, functional foods and foods that are convenient to prepare) being reflected in the prices of processed food products.

Main Processed Industry Sectors

Meat

Spain's meat processing industry is the fourth largest in the EU, and is one of Spain's leading food processing sectors. Spain produced over 5 million tonnes of meat in 2001, and has an estimated production capacity of 7 million tonnes/year. In 2001, Spain processed approximately 3 million tonnes of pork, 1 million tonnes of poultry, 642,000 tonnes of beef and veal and 254,000 tonnes of mutton and goat meat. Average meat consumption in Spain was 66 kg per capita in 2001.

Dairy Products

The highest concentration of milk production in Spain occurs in Asturias, which accounts for 54% of national milk sales. Per capita consumption of liquid milk in Spain is estimated to be 113 litres, of which 86% is consumed in the home. In 2002, Spain produced 178,910 tonnes of cheese. It is estimated that Spain has a per capita consumption of 6 kg of cheese.

Fats and Oils

Total olive oil production in Spain was 829,500 tonnes in 2002, making Spain the world's top producer of olive oil. Per capita consumption of fats and oils in Spain is approximately 21 litres, of which 56% is olive oil, 39% is sunflower oil and 5% is oil from other oilseeds. The majority of olive oil consumption occurs within the home (83.4%).

Canned Fruits and Vegetables

Approximately 1.3 million tonnes of canned fruits and vegetables are produced in Spain annually. Canned tomatoes account for 41% of the total volume produced, followed by other processed fruits (35%), processed vegetables (21%) and jams and marmalades (3%). Total Spanish consumption of canned fruits and vegetables is estimated to be 800,000 tonnes per year.

Canned Seafood

Spain produces 250,000 tonnes of canned seafood annually. There are 133 processing plants in Spain, of which approximately 80% are located in Galicia. The majority (55%) of total canned seafood produced is tuna. Sardines, octopus, squid, mackerel and mussels are also canned. Annual per capita consumption of canned seafood products is 4 kg in Spain, of which 81% is consumed in the home.

Alcoholic Beverages

Spain is a strong producer of wine and beer. Spain is the world's third largest producer of wine, producing over 3.4 million tonnes in 2002. The wine sector accounts for 11.3% of Spain's food processing industry's output, with over 3,800 companies involved in the wine business.

In 2002, beer production totaled 2.5 million tonnes, but Spain still remains a net importer of beer. Spain is the third largest beer producer in the EU, and the ninth largest in the world, also producing most of its own inputs for beer, such as hops (1,200 tonnes in 2002). Average per capita consumption of beer was 75 litres in 2001, and 3.1 billion litres in total.

Water and Non-Alcoholic Beverages

Spain, the fourth largest producer of bottled water in the EU, produced 4.26 billion litres of bottled water in 2001. Per capita consumption of bottled water was 103 litres, with 74.3% being consumed in the home.

Spain produced 200 million litres of non-alcoholic beer in 2001, an increase of 9% from 2000. Consumption of non-alcoholic beer was 5 litres per capita in 2001, the highest consumption rate in the EU.

In 2001, production of soft drinks totaled 3.89 billion litres in Spain, the third most in the EU. Total production by flavour consisted of cola (57.8%), orange (15.7%), lemon (9.5%), soda (9.7%), lemon-lime (3.6%), tonic (2.3%), and other flavours (1.4%). Per capita consumption of soda was 95 litres, with 60% being consumed in the home.

Production of juices in Spain totaled 957.8 million litres in 2000, an increase of 4.7% since 1999. Consumption of juices and nectars totaled 700 million litres, with about 74% being consumed within the home. The most popular juice flavours are peach (30%), orange (25%) and pineapple (25%). About 90% of the juices produced in Spain are manufactured from concentrates.

Trade Policy and Standards

As a member of the European Union, Spain has no independent bilateral trade agreements with any developed nation,although the free trade agreements negotiated by the EU apply to Spain. The EU has free trade agreements that include agricultural trade with Mexico, South Africa, and the Mediterranean countries. The European Economic Area (EEA), which consists of Iceland, Liechtenstein, Norway and Switzerland, also shares a free trade agreement with the EU. The EU gives preferential Most Favoured Nation (MFN) trade treatment to nine members of the WTO (Australia, Canada, Chinese Taipei, Hong Kong, China, Japan, Republic of Korea, New Zealand, Singapore and the United States). Under the Generalized System of Preferences the EU also grants preferential tariffs to more than 100 developing countries and about 40 overseas territories.

In addition to being a member of the European Union, Spain is also a member of the: 2003-2004 UN Security Council, Economic and Monetary Union, Organization for Economic Cooperation and Development, World Bank, United Nations Conference of Trade and Development, European Bank for Reconstruction and Development, African Development Bank, and the Inter-American Development Bank. Spain has followed the GATT code since 1963, and adheres to the 1969 Multilateral Trade Negotiations codes on technical barriers to trade subsidies and customs valuations. As a member of the EU, Spain also adheres to the Common Agricultural Policy (CAP).

The CAP is a joint policy of the European Union that allows for free movement of goods and capital within the EU member states, and also sets common tariffs on imported goods coming from non-EU countries. Each EU member state applies the same Common Customs Tariff (CCT), although the rate differs by origin and type of import. The average agricultural tariff for the Most Favoured Nations is 16.1%.

Although each EU member state applies the same CCT, the amount of the value-added tax (VAT) applied differs by member country. VAT's are levied in the country of final destination, which is 7% for agricultural products in Spain. There are, however, a few agricultural commodities that are either duty-free or subject to minimal duties (e.g. soybeans, sunflower seed, and corn by-product).

Trade Restrictions

Spain and the rest of the EU Member States prohibit the importation of farm or aquaculture animals or food products to which hormonal substances have been administered, as stated in the provisions of Council Directive 96/22/EC. Under this regulation, Canada may only export non-hormone treated animal products to the EU.

The EU adapted a new labelling and traceability framework for GM-food and GM-feed in July 2003; however, the United States, Canada and Argentina have requested WTO consultations on the EU´s authorization system for GMOs and GM foods. The allegations are that the EU is maintaining a de-facto moratorium on new GM varieties, given that since October 1998, no new GMOs have been authorized.

Testing, Labelling and Certification

The requirements on labelling, marking and testing in Spain are complex and change frequently. The Directorate General of Health sets the standards for food preparation, residual content and storage media for almost all classes of foodstuffs intended for human consumption. Labels must be in Spanish, and include the product designation, list of ingredients, weight or volume, dates (manufacturing, packing, minimum shelf life and expiration), directions on food preservation (if applicable), identification of the firm involved (manufacturer, packer or importer), and country of origin. A sticker written in Spanish with all the mandatory labelling information is also acceptable in lieu of a label. Milk products, margarine, chocolate and soaps have additional technical labelling requirements. Nutritional labelling is not mandatory unless a nutritional claim is being made in the labelling, presentation or advertising of the product.

All exports to Spain are required to possess a commercial invoice, export declaration form, bill of lading packing list and three copies of a certificate of origin. Import licenses, which are also required, are issued by the registrar general of the Secretariat of Trade in Spain and are valid for six months. The request for an import licence must be accompanied by an invoice listing transportation and insurance fees, the CIF price, the net and gross weights and the invoice number.

Phytosanitary certificates are required for most fresh fruit, vegetable, and plant material entering Spain. Official government export documents are required with the shipments of commodities containing animal products or by-products, and commodities that have been subjected to heat treatment or radiation. An import certificate (AGRIM) is required for various agricultural products.

Spanish import regulations are subject to the requirements of the Spanish Ministry of Agriculture, and Canadian exporters are subject to the regulations set by the Canadian Food Inspection Agency.

Key Chapter Conclusions:

• Spanish consumers are spending more on food than their respective wages are increasing. (Spanish consumers spent more on food by about 2.5 times more than their wages increased in 2000.)
• Spanish consumers increased their spending on food and beverage products by more than they increased their consumption. This may indicate increased prices for food or a shift to purchasing more value-added goods.
• The Mediterranean diet is still predominant in Spain; however, there is a shift away from this diet to a more North American diet. Consumers are also frequenting ethnic restaurants more. Opportunities may arise in supplying ethnic food products, primarily American and Tex-Mex.
• Fish is a main component of the Spanish diet, and due to EU quotas and the oil spill in 2002, Spain is supplementing their domestic catches with imports. Opportunities for exporters to supply traditionally domestic catches in the Spanish market may result.
• Breakfast is the least important meal for Spanish consumers; however, the likelihood of skipping breakfast is lower than in North America. This may indicate opportunities for convenient, eat-on-the-go breakfast foods in Spain.
• Convenience and health concerns are becoming increasingly important considerations for Spanish consumers and there is a growing demand for products that address these concerns.
• As shopping patterns shift, exporters should be aware of the sector (i.e. HRI vs. Retail vs. Food Processing) and establishment (e.g. café vs. restaurant; supermarket vs. traditional outlet) best suited for their product(s).
• It may be beneficial for exporters to target specific regions of Spain, as food expenditure and consumption varies throughout Spain's Autonomous Communities.
• Exporters interested in the Spanish alcoholic beverages market may wish to target niche markets in the HRI sector.
• Spain has a highly developed food processing sector, and produces many agriculture, agri-food and seafood products domestically. Domestic production is a key competitor to imported products.
• Canada has Most Favoured Nation status with Spain (and the EU as a whole), with an average agricultural tariff rate of 16.1%. This status gives Canada a relative advantage over some countries with regards to tariff rates, although European Union member states enjoy free trade privileges with Spain.

V. Overview of Imports/Exports of Agri-Food Products/ Agri-Food Markets

Worldwide Trade with Spain

Spain is a net exporter of agriculture, agri-food and seafood products. In 2000, Spain exported €17.98 billion in agriculture, agri-food and seafood products worldwide, and imported €17.69 billion. Spain's main trading partners are other EU countries. Nearly 78% of Spain's agriculture, agri-food and seafood exports went to other EU member states in 2000. The majority of Spain's agriculture, agri-food and seafood imports (54.6%) also came from other EU member states. Processed food and beverage products account for over half of Spain's edible agriculture, agri-food and seafood imports, with over two-thirds originating from the EU. However, 60.3% of Spain's primary agriculture and seafood imports originate from non-EU countries. It is important to note that trade statistics for EU countries are likely skewed due to re-exportation of goods throughout the European free trade zone.

Canada - Spain Bilateral Trade

Trade Balance

In 2002, Canada's agriculture, agri-food and seafood exports to Spain were valued at $86.5 million, which accounted for approximately 0.4% of Spain's total agriculture, agri-food and seafood imports. Conversely, Canada's agriculture, agri-food and seafood imports from Spain were valued at $170.7 million. Canada's agri-food balance of trade with Spain changed from a trade surplus to a trade deficit from 2001 to 2002, with a decrease of over 400%. Refer to Table 5.1.

* Note: There is a large discrepancy between Spain's statistics of fish and seafood imports from Canada ($36 million in 2002) and Canada's exports of fish and seafood products to Spain ($9.983 million in 2002). This discrepancy is likely due to the re-exportation of fish and seafood through other EU member countries. Spain's "actual" imports from Canada are likely somewhere between the two statistics.

Canada's Agriculture, Agri-Food and Seafood Exports to Spain

Canada's agriculture, agri-food, and seafood exports to Spain decreased dramatically between 2001 and 2002, although exports were relatively stable from 1999 to 2001. Canada's top agri-food exports to Spain in 2002 consisted mainly of pulse crops, with soybeans being Canada's top export to Spain in 2002. The decline of Canada's exports to Spain in 2002 occurred mainly in the commodity of dried and shelled peas (other than green, yellow, split or sowing peas) which decreased from a value of $82.8 million in 2001, to $20,000 in 2002. This decrease in pea exports does not seem like a one-year obscurity as Canadian exports of these peas have remained significantly lower than 2001 levels with a value of about $2.7 million through October 2003. Because Spain imported fewer peas from all countries in 2002 by over 350 tonnes (valued at ~US$40 million) and domestic pea production only increased by approximately 42 tonnes in 2002, it can be inferred that either Spain's consumption of peas decreased substantially in 2002, or Spain's re-exportation of peas decreased substantially in 2002. A decrease in pea consumption may coincide with the trend of moving away from the traditional Mediterranean diet.

On the other hand, Canada's seafood exports to Spain increased by almost 300% from 2000 to 2002, while worldwide seafood exports to Spain increased by only 17%. The products responsible for the large increase in Canada's seafood export growth to Spain in 2002 include tuna and hake (see Table 5.2), which are two of Spain's main domestic fish catches. This is a direct result of Spain supplementing domestic catches with imports due to the EU quotas and the coastal oil spill.

Table 5.2: Canada's Top 5 Fish and Seafood Exports, and Agri-Food Exports to Spain by Value in 2002

Canada's agri-food exports to Spain in 2002 consisted mainly of bulk products (61.4%), followed by intermediate products (35.4%), and consumer products (3.2%). Canada's intermediate exports to Spain, which dominated Canada's agri-food exports to Spain from 1996 to 2001, have decreased annually since 2000. Canada's bulk exports to Spain have varied widely from 2000 to 2002, and consumer goods have been relatively stable, but consist of a very small portion of Canada's agri-food exports to Spain.

Canada has been increasing exports of the following agriculture, agri-food and seafood products to Spain over the period of 2000 to 2002 (only products with exports valued at over $200,000 in 2002 were included -  for more detail, see Appendix 1):

• Frozen bovine edible offal
• Live lobsters
• Chickpeas dried and shelled
• Green peas dried and shelled
• Green lentils dried and shelled
• Soya beans
• Rye whisky
• Dog or cat food
• Bird seed

If these export growth trends continue, there may be opportunities for Canadian companies to export more of the above mentioned products to Spain.

Canada's Agriculture, Agri-Food and Seafood Imports from Spain

As outlined in Table 5.4, Canada's top agri-food imports from Spain by value in 2002 were wine and mandarin oranges, while the top fish and seafood imports from Spain in 2002 were frozen shrimp and prawns and canned anchovies.

Table 5.4: Canada's Top 5 Agri-Food and Seafood Imports by Value from Spain

Key Chapter Conclusions:

• Spain's main agriculture, agri-food and seafood trading partners are other EU member countries, especially in processed food and beverages. It is very difficult for Canada to compete with these countries due to their free-trade status with Spain.
• Canada currently has a very small share of Spain's agriculture, agri-food and seafood import market.
• Of Canada's agriculture and agri-food exports to Spain, consumer goods represent a miniscule portion.
• Canada's exports to Spain decreased significantly in 2002; however, Canada's seafood exports to Spain have increased significantly from 2000 to 2002, and opportunities in the seafood sector are expected to continue.

VI. Market Structure

The Spanish market is decentralized, with Madrid and Barcelona acting as hubs for Spain's regional markets. Madrid connects the southern, western and central regions of Spain, while Barcelona connects the Balearic Islands and the North African cities of Ceuta and Melilla. The majority of agents, distributors, foreign subsidiaries and government-controlled entities operate out of Madrid and Barcelona. Foreign firms usually choose to appoint an agent or distributor, or to establish a subsidiary in either, or both, of these two cities in order to access regional markets, as this local representation is usually more familiar with the various cultures, consumption attitudes, and preferences within the different regions of Spain.

Important centres for the agriculture, agri-food and seafood sectors include:

• Madrid - Spain's main centre for banking, administration and transportation, and home to the headquarters of many large international firms;
• Barcelona and Bilbao - two of Spain's leading ports;
• Valencia - a major centre for citrus fruits and vegetables;
• Seville - a major source of olive oil, cork, wines and other agricultural products; and
• Vigo - Spain's most important fishing and fish-canning centre.

Distribution Channels

Spain's food distribution system is well-developed, and offers a range of channels through which foreign firms may distribute their agri-food products. These distribution channels vary from traditional methods, in which wholesalers sell to traditional retailers, who, in turn, sell to the public, to more complex methods characterized by large multinational supermarkets, retail-stores and central purchasing units. Most exporters sell their products through the use of an agent or distributor; however, alternative distribution channels include selling directly to wholesalers or establishing a sales office in Madrid or Barcelona. Marketing food and beverage products directly to retail outlets is not a common practice in Spain.

Spain's food distribution sector is becoming more concentrated and specialized, and is increasingly dominated by fewer companies. In 2000, the two main food distribution companies in Spain were IFA Española, with sales of €10.2 billion, and Euromadi Iberica, with sales of €9.6 billion. Both companies are importers/distributors.

Although the use of distributors is common in the food and beverage sector, most fresh products (e.g. seafood, fruits and vegetables) are distributed through 22 public wholesale markets located throughout Spain. Many large grocery retail chains use buyers to purchase fresh products for their retail outlets from these wholesalers. These products are then delivered to the retailer's platform or warehouses, where they are then distributed to each retail store.

Grocery Retailers

There are five types of grocery retail outlets in Spain:

• Hard Discounts: Discount stores carry a low-priced, limited variety of products. There are approximately 2,958 discount stores in Spain. The leader in the market is Dia, which is owned by Carrefour.
• Hypermarkets: Hypermarkets have a minimum retail area of 2,500 sq. meters. They carry a wide variety of food and non-food items, and are usually located outside of town centers. There were 322 hypermarkets in Spain in 2001.
• Supermarkets: Supermarkets have a retail area between 400 and 2,499 sq. meters. They carry a wide variety of food and non-food products, and are usually located in city centres. There were 13,175 supermarkets in Spain in 2001.
• Convenience Stores: A convenience store is an outlet that has a maximum area of 500 sq. meters, is open to the public every day for 18 hours, and offers a wide variety of products including food, books, newspapers, presents and toys. Convenience stores are usually located in the centres of small and medium sized towns, and are often co-located with gas stations. There are about 5,600 convenience stores in Spain.
• Traditional Outlets: Corner grocery stores, bakeshops, neighbourhood butcher shops, fishmongers, open air markets and frozen and gourmet food stores are all considered traditional grocery outlets. In 2001, there were about 45,500 traditional outlets in Spain.

The grocery retail sector is becoming more concentrated as the number of traditional retail outlets is diminishing, while the number of supermarkets, discount markets and hypermarkets is growing. (Refer to Figure 6.1). In 2001, Grupo Carrefour was the largest grocery retailer in Spain, with a market share of 11.8%, followed by Eroski (8.3%), Mercadona (8.3%) and Auchan (6.3%).

In 2001, five of the ten main grocery retail chains in Spain were owned by foreign firms. France, the Netherlands and Germany all own major grocery retail chains in Spain, with the largest chain, Grupo Carrefour, owned by France.

Figure 6.1: Growth trends of Retail Outlets in Spain (1999-2001)

Hotels, Restaurants, and Institutions (HRI)

Commercial distributors in the HRI sector are capable of supplying the majority of the needs of Spain's diverse food service providers. In 2000, nearly two-thirds of food and beverages purchased by food service providers were bought through distributors. Food service companies also purchase their products through wholesalers, manufacturers, traditional retail outlets, cash and carries, supermarkets, hypermarkets, cooperatives and other methods. Refer to Figure 6.2 for a breakdown.

Figure 6.2: Market share by channel of distribution in the HRI Sector (by value purchased through each channel).

The trend of concentration within Spain's distribution channels is also apparent in the HRI sector. Many smaller distribution companies are merging into larger companies, such as Grupo Nacional de Distribution (GRUNADIS) and the Spanish Association of Distributors (AEDIS). GRUNADIS supplies food service retailers throughout Spain; whereas, AEDIS has member organizations in each of Spain's provinces and centrally purchases imports for distribution to its provincial organizations.

Many distribution companies have outlets specifically tailored for supplying the HRI sector. For example, Makro, Unigro, Coop. Coviran, H.D. Covalco, Puntocash, Alimentacion Peninsular, and Grup Enaco all have outlets for supplying the HRI sector. Some distribution companies, such as Mercatel and Davingel (Balearic Islands), and Grup Sehrs (Costa Brava), have located in high tourism areas in Spain in order to better serve the HRI sector.

HRI Outlets and Companies

The number of foodservice outlets in Spain (i.e. hotels, restaurants, cafés and bars) varies widely by geographic region. The variation in HRI outlets is partially attributed to the high level of tourism present in certain regions of the country, such as the Mediterranean coast, Balearic Islands and Canary Islands. Table 6.1 shows the distribution of foodservice outlets by region in Spain. The northeastern region of Spain (Aragón, Cataluña and Balearic Islands), a popular tourist destination, has the highest proportion of foodservice outlets in the country (2001).

*Please note: A bar in Europe is very similar to a pub in North America.

The majority of cafés in Spain are franchises and include:

• Café Jamaica
• In Caffee di Roma
• Plantaciones de Origen
• Café y Tea
• Café Caracas
• Illy Café "L'express

The majority of the hotels in Spain consist of national and international hotel chains (56.7%), with independently owned hotels accounting for the remainder of the market (43.3%). The major hotel chains in Spain, in 2001, were:

• Sol Melia S.A. (Grupo)
• RUI S.A.
• NH Hoteles S.A.
• Iberostar
• Barcelo Hoteles
• Fiesta, H10 Hoteles
• Globales
• Princess, Grupotel S.A

Table 6.2 shows the leading restaurant and cafeteria chains in Spain, the type of food they serve, their sales in 2001, and the number of food service outlets they have throughout Spain.

Food Processing

Food processing companies usually import or directly purchase their ingredients from producers. Processed food products are sold to the public mainly through retail outlets. Most retail processed food sales occur through supermarkets (58.5%), followed by hypermarkets (28.2%) and traditional retail outlets (13.3%). Many products are also sold through the HRI sector.

Numerous Spanish food processing companies are involved in joint ventures with foreign food companies, with 25-30% of total food sales in Spain occurring through completely or partially owned foreign companies. In the Spanish beverage sector, foreign firms account for 45% of total sales.

The main food processing companies operating in Spain, in 2000, were Servicios de Bebidas Refrescantes (Coca Cola), Azucarer Ebro Agricolas (processed foods) and Nestle España (processed foods). Refer to Appendix 2 for a more detailed list of the leading food processing companies in Spain.

Competition

Canada's major agri-food and seafood export competitors in Spain are other EU member states, with 54.6% of Spain's agriculture, agri-food and fish and seafood imports originating from EU members (2000). EU member countries, and their respective firms, have benefited from free trade with Spain since it joined the EU in 1986 and also enjoy lower shipping costs and standardization of products. This makes it exceedingly difficult for Canadian firms to compete with EU firms with respect to price.

Spain's agriculture, seafood and food processing sectors are highly developed, making domestic production a strong competitor with Canada's exports. The majority of inputs used in Spain's food processing industry are either produced domestically or are imported from other EU member states.

The United States is in competition with Canada on many agricultural products, given that both countries' agricultural industries produce many of the same products, and face the same tariff rates. The transition away from the Mediterranean diet to a more North American diet in Spain is likely to increase the competition between the United States and Canada in supplying North-American products to Spain.

Key Chapter Conclusions

• Madrid and Barcelona play an important role in the distribution of imports, as they both act as hubs to regional markets and many businesses have their headquarters in these two cities. Canadian exporters may wish to send their products to these cities as a primary destination.
• Exporters may find it beneficial to hire a local agent to access regional markets due to the diversity present in the various regions of Spain.
• Spain's food distribution system is well-developed and becoming increasingly concentrated and specialized. The use of distributors is most common in the food and beverage retail and HRI sectors.
• Fresh products (including seafood) are typically distributed through public wholesale markets.
• The concentration of HRI establishments varies significantly by geographic region, and is highest in the regions with the most tourism.
• Many Spanish food processing companies are involved with joint ventures with foreign food companies. Canadian companies wishing to supply the food processing sector in Spain may also want to consider joint venture opportunities.
• Imports from European Union member countries and the US, as well as domestic Spanish production are Canada's main competitors in the Spanish market.

VII. Identification of Contestable Markets for Canadian Agri-Food Exports in Spain

Contestable Markets and Possible Opportunities

Several potential opportunities have been identified for Canadian companies to export agriculture, agri-food and seafood products to Spain. Refer to Table 7.1. These opportunities are based on the consumption and export trends identified throughout the document. Some products that were identified as consumption trends in Spain were excluded as opportunities for Canadian companies based on the examination of Canada's capabilities in these areas and previous export performance to Spain and the EU.

Table 7.1: Potential opportunities for Canadian agriculture, agri-food and seafood exports to Spain

Specialty Foods

• Diet, low fat, low cholesterol foods
• Natural/Organic foods
• Fresh/chilled pasta
• Sugar confectionery
• Chewing gum
• Frozen bakery products
• Ethnic foods especially Tex-Mex and American style

Convenience Foods

• Prepared ready-meals

- Canned mainly, also chilled, frozen, dried
- Vegetarian meals
- Meat dishes

• Snack bars, and convenient breakfast foods
• Processed fruit and vegetables (frozen, canned and dried)
• Meal replacement products

Private Label Foods
(opportunities in almost all areas)

• Unique, new products
• Canned vegetables

Non-Alcoholic Beverages

• Fruit and Vegetable juices
• Mineral Water
• Functional drinks
• Specialty Tea
• Non-alcoholic beer

Alcoholic Beverages
(mostly in the HRI sector)

• Premium beer
• Rye whisky
• Quality and specialty wine (e.g. ice wine)
• Flavoured rum drinks

Pulses

• Soybeans
• Chickpeas (other than Kabuli varieties)
• Dried green peas
• Dried green lentils

Petfood

• Cat and dog food
• Bird seed

Fish and Seafood

• Live lobster
• Processed, chilled and frozen fish/seafood
• Spain's typical domestic catches of fish/seafood (e.g. hake, tuna, mussels)

Note: Canadian companies seeking to export to Spain should further research their specific product area and their ability to produce competitively in the Spanish market.

Appendix 1

Appendix 2