Fruit and vegetable production and export is a vital strategic sector in the Spanish rural economy. It amounts to more than 30 per cent of all agricultural output. But its importance goes beyond the confines of rural industry. Horticulture is one of the major sectors of Spanish exports and represents eight per cent of Spain’s total sendings to international markets.
Overall exports of Spanish fresh produce amounted to a little over nine million tonnes in 2004. This is a figure that has remained fairly stable in the last three years, as Europe’s most important producer and exporter consolidates its position as leader and continues to position itself to meet the demands of the global marketplace.
Of the total of 9,243,015t of exports, fruits represented 5.35mt or 57.9 per cent. The remainder fell into the vegetables and salads category.
Some 94.3 per cent of exports are consumed by the 25 member states of the European Union and the UK accounted for 13.4 per cent of 2004 exports from Spain, a volume of 1.24mt. This figure places the UK as the third largest export market for Spanish growers, behind Germany (25 per cent) and France (20 per cent).
Interestingly, the profile of exports into the UK shows that just 38 per cent of Spanish fresh produce that finds its way into the mouths of the UK public is fruit. The UK is a major importer of Spanish salads, outstripping any other European market other than Germany, while there is also an established market for heavy volumes of Spanish vegetables, most notably brassicas, courgettes, onions and potatoes.
In fruit, the UK imports the third largest proportion of Spanish citrus, melons and berries, although the volumes pale in comparison with the two largest central European markets. Spanish stonefruit has a sizeable window, while some fruits that would still be categorised as niche lines, such as watermelon, avocado and a number of exotic lines all play a part in as diverse a portfolio as exists anywhere in the world of production, one that maintains a Spanish presence in the market year-round.
VEGETABLES
The brassica job from Spain has grown consistently in the UK market, which is the largest importer of Spanish product. Leading in this sub-category is broccoli, which has taken off on the UK shelves in recent years, while cauliflower and cabbage have a steady demand.
Promotion of broccoli as a vegetable with anti-cancer properties has pushed it forward in the eye of the UK consumer and Spain has benefited from a wave of positive media coverage and promotions by the UK industry. Murcia is the leading Spanish region in the production of broccoli, much of it grown according to integrated production protocols. Growers also have the benefit of their ability to offer an autumn-winter and a winter-spring crop.
On the back of the broccoli boom, sales of brassicas into the UK have risen to 114,425t, which represents more than a third of Spain’s overall exports of the products in the family. One innovative niche developed in the last few seasons is mini-caulflower, which has enjoyed a high profile amongst retailers attempting to add value to their vegetable offer.
Spanish courgettes also enjoy steady demand from the UK market and account for more than 60 per cent of all imports into this country. Year-round availability allows the Spanish to take advantage of not only their own natural supply season, but also to be a reliable gap-filler when other sources are unable to fulfil their commitments.
In a good year, the Spanish onion crop can reach a million tonnes. Grown in the Valencia, La Mancha and Andalusia regions, the major markets for Spanish onion exporters have traditionally been the UK and Germany. The UK consumed 71,555t of Spanish onions in 2004, more than one third of the total exported volume.
The extension of the EU into eastern Europe has opened up new windows of opportunity, while simultaneously increasing likely levels of competition in the onion market in western Europe.
Demand for Spanish product in the UK has remained reasonably predictable to date, however, and fluctuations have largely been due to supply rather than demand. Around 10 per cent of Spanish production has traditionally been consumed by the UK. Spain produces the typical salad onion - a large, sweet, single centred, onion. With the market trend leaning towards sweeter onions, Spain is well placed to remain a serious contender in world markets.
The Spanish industry - wary of competition from outside Europe - is constantly searching to introduce new varieties and can now boast state-of-the-art storage facilities. Most facilities pre-grade before storing to cut down on wastage, and storage of early varieties has been cut to an absolute minimum. Storage periods for mid-season and later varieties have also been cut to enhance quality at the final destination.
With more than 23,000 hectares of garlic, mainly in Castilla-La Mancha, Andalusia and Castilla y León, and exports of around 60,000t in a ‘normal’ year, Spain continues to be the largest garlic producer in Europe and a supplier of high-quality product to European and African markets.
There is a strong belief within the Spanish industry that the Morado variety has superior taste, quality and shelf-life attributes than garlic from competitive sources.
Chinese product is the biggest threat to Spanish expansion in the UK. Proximity to market has been to Spain’s benefit until recently, when the sheer volume of production and economies of scale have allowed Chinese exporters to take a foothold in price-sensitive sectors.
While the UK is becoming a larger consumer of garlic, the British have not yet shown themselves to be savvy enough to favour quality over price. Spanish growers and exporters have seen the need to offer something more and product innovation has been vital in the drive to differentiate the Spanish garlic offer in a tough marketplace.
But the UK market lags behind Italy, France and Germany as an importer of the Spanish crop, and only 7,000t of the 66,000t 2004 figure was bought by UK customers.
Spanish new potatoes have long enjoyed success in the UK, with Majorcan farmers having shown the desire over the last few years to extend their export season and send their potatoes to market as early as possible. Seeds, imported from the UK and the Netherlands, are physiologically manipulated in order to encourage them to sprout faster. And in a good year, Majorcan potatoes can arrive as early as March, allowing them to compete with sources such as Israel, Jersey and Cyprus for UK shelf-space.
Weather is often the determining factor in the length of the season, but potatoes from Majorca and the mainland have a loyal customer-base in the UK, which gobbled up 34,095t of the 274,294t crop in 2004.
A number of other smaller volume vegetable and salad lines enter into the UK supply calendar at various points of the year. More than 60 per cent of leek exports and 70 per cent of Spain’s spinach exports in 2004 were directed to the UK, for instance, while carrots, turnips, celery and green beans can also count on the custom of UK importers, for final destinations across the retail, wholesale and foodservice sectors.
BERRIES
Spain is second only to the US when it comes to strawberry production and outstrips other European producers by far. Production is concentrated in the Huelva province of the region of Andalusia, in fact some 95 per cent of the entire national crop is grown there. Volumes are huge: around the 350,000 tonne mark and the UK takes a hefty 25 per cent.
The sector is extremely well developed and there has been a massive move in the last few years over to production in high tunnels to provide greater protection from the elements than the more traditional micro-tunnels. Hydroponic methods of cultivation are also catching on as an alternative. Growers have been quick to realise in the last couple of seasons that the method gives them greater control over the crop and consequently better, higher quality yields. Shape is more uniform and packouts of 95 per cent class one are common. But the investment required means that uptake is not universal, yet.
The sector in the Andalusian province is represented by Fepex association Freshuelva. Its members account for 80 per of the volumes grown and marketed from the area. Founded in 1983, one of its most important roles is the promotion of its members products and the quest to keep the sector at the vanguard of its field by entering into partnerships with key research bodies and even funding its own R&D projects. The organisation also offers a comprehensive training programme for the whole gamut of jobs and roles in the soft-fruit arena.
As with production of many lines in Spain, small-holdings are key in berry production and the average size in Huelva of a plantation is 3.2ha. Strawberry growers help ensure biodiversity in their immediate environment as many grow other crops such as cereals and citrus or engage in viticulture.
Although the region faces challenges from competitive production in the Mediterranean basin from sources such as Morocco, Israel and Egypt, Spain has pioneered the winter and spring cultivation of the crop and is the main reason why a whole generation of consumers expect to be able to enjoy their favourite fruit year-round.
Significant developments in the new decade are partnerships with international grower-breeders that are bringing new varieties to Huelva and other production zones in Europe to give year-round availability. As yet there has been no big development to replace mainstay Camarosa, but reliance on the shiny red berry has diminished from the worryingly high levels of 98 per cent just a few seasons ago.
The Spanish have been quick to realise burgeoning demand for raspberries, and their production has been on the increase, most notably in Huelva, although there are smaller volumes planted in the renowned Jerte valley in Extremadura.
There are some 850ha under production of raspberries in Huelva and the rise has been meteoric: from negligible acreage in the 1980s to 160ha by 1997 and 550ha in 2002. Plantings are put in from August until December to give a crop staggered from December until May.
Freshuelva also represents its members in this crop as much of the expansion has been from strawberry growers bolting on production of raspberries.
The organisation is carrying out valuable research work into optimum cold storage temperature and timing for raspberry plants, in particularly Glen Lyon, the most popular variety in the region by far.
Huelva growers have been developing the cold storage method as a means of reusing their plants after fooling them into hibernation.
As far as other varieties are concerned, Tulameen accounts for only about five per cent of canes. But new types introduced on an exclusivity basis from international breeders are further altering the industry’s offer as they are with strawberries.
Moves towards integrated production protocols are being put in place by the department of agriculture at the Andalusia regional executive in collaboration with Freshuelva. This will mean regulation of production from soil types right through to inputs growers use.
The UK market has been a major driver for the initiative which was embarked on last year as the country ranks along with Germany as one of the leading markets.
CITRUS
Spain is one of the big guns in world citrus production behind only Brazil, the US and China and leads the world in volume of fresh product exported. Valencia is the dominant region in production, although Murcia is also significant, leading the way in lemon and grapefruit production and increasingly Andalusia is becoming a force to be reckoned with.
Oranges, lemons and easy-peelers from Valencia make up almost 80 per cent of national citrus production. The climate for production of the fruit is exceptional: warm days allow good sugar development and the region’s cool night-time temperatures mean fruit achieves good colour.
Cultivation of the crop is traditional and typically depends on small-holders who in turn are well organised into co-operatives and other agricultural company structures.
The industry is very well supported by the agriculture department of the Valencia regional executive, in particular when it comes to research. This is headed up largely by the region’s research body Ivia, which investigates new varieties, rootstocks and disease control among other specific citrus projects.
A key development has been the introduction of the protected geographic indicator Citricos Valencianos in 1999. The regulatory council has rigorous quality standards that registered producers and packers must meet before their fruit can bear the PGI mark. For example, only those plantations and facilities registered with the regulatory council can use the label. Another example are the minimum juice content specs for easy-peelers, oranges and lemons at 40 per cent, 35 per cent and 25 per cent of the total weight of the fruit respectively. The entire chain of supply right up to point of sale is scrutinised by the regulatory council.
The development is positive as acreage, packhouses and tonnage marketed under the IGP all increase. The image of the fruit on domestic and overseas markets is enhanced and is also benefiting from a significant promotional boost, especially in schools in the Valencia region.
Meanwhile, citrus production in Huelva has been climbing steadily to reach some 14,000ha and an estimated 384,000 tonnes this year. The development is extremely recent given that in 1980 there were just 1,500ha under production and a mere 400t of production. The Navel group dominates overall volumes accounting for a third of the crop with late types such as Valencia the next most dominant sector at 22 per cent, closely followed by clems at 20 per cent. With such a new industry, integrated crop management techniques have been in place from the start for most of the sector’s operators and compliance with EurepGAP norms is a given.
APPLES
Spain ranks way down the list as a supplier of apples to the UK. But a handful of operators in the UK have seen an opportunity for Spain as an early source of Royal Gala in August and September, and occasionally even in the last week of July.
The biggest destination for Spanish apples is, however, the domestic market which takes 75-80 per cent of the crop, and even then growers face stiff competition from French and Italian imports as they do not produce enough to satisfy national demand.
Catalonia is the largest production area by a country mile: 42 per cent of the national crop is grown in and around the Lerida area of the region followed by Aragon to its west with 30 per cent. This apple growing heartland is situated in the river Ebro basin.
The region is well equipped with the latest in storage technology to ensure that Spain has 12-month availability of domestic apples and benefits from long-term storage facilities on a par with other European producers. The location of growing areas in the foothills of the Pyrenees also favors fruit development and coloration, and reservoirs in the mountains provide ample irrigation.
Spain is keeping step with other leading producers in Europe, renewing its orchards hence leanings towards Gala and to a lesser extent other bi-coloureds such as Fuji and Pink Lady which is well suited to the climate in the Lerida region.
Nevertheless it is still Golden Delicious that dominates the variety portfolio with about half of the crop.
Production infrastructure in the two main growing areas is highly organised with the vast majority of growers involved in producer organisations based on co-operative or similar structures of a range of sizes.
Growers are lagging behind in organic production given the time taken for an orchard to convert, but they are embracing integrated crop management techniques readily.
The Association of Catalan fruit producers, Catalonia Qualitat, is an independent non-profit making organization, which was set up as a response to the need for co-ordination on the global marketplace.
It ensures a bond between its members and creates a link between the production and the rest of the chain with a view to defending growers’ interests.
It is heavily involved in promotion and research.
STONE FRUIT
Dreadful weather conditions in 2004 saw the Spanish stone-fruit crop plummet to levels not seen for many years. But a season unaffected by the vagaries of the climate would yield in the region of 500,000t of plums, apricots, peaches and nectarines, of which the UK imports around 10 per cent. Limited variety in the ranges of all products except plums has been the major obstacle to further market potential in the UK, but gradually producers are being encouraged to trial new strains and widen their horizons.
There is a particular emphasis on the plum job amongst UK importers though, and they punch above their weight by taking between 20 and 25 per cent of Spanish exports, a figure that accounts for more than 50 per cent of UK consumption of the imported fruit. An extensive range of plums are sold in the UK, mainly between May and September, although work has been ongoing to find types that can extend the shoulders of the season and cover potential hotspots in the calendar at either end of the Spanish campaign.
Some 14,294t of Spanish peaches were also eaten by consumers in the UK last year, which again puts the Spanish suppliers at the top of the list of exporters to this country, with a season that mostly gets crammed into the peak sales months of May and June. Varieties such as Maycrest and Springcrest have proved popular, as have Dessert Gold and Early Red, although producers are beginning to look in other directions to extend their portfolio.
Nectarines are the biggest stone-fruit line exported out of Spain, with the volume most illustrative of potential output being 2003’s 218,830t. The UK took around seven per cent of the export crop in that season, but the firm position of Spanish fruit in the programmes of retailers and wholesalers was shown when that rose to nearly 10 per cent in the low-volume year last time around. The southern hemisphere has led the way in recent years in terms of varietal development in nectarines, and Spain’s growers, as with plums and peaches, have shown a willingness to look at their options.
Apricots also have a steady market in the UK, with around 1,200t exported in 2004. That represented around 20 per cent of UK imports, although Spain’s share of the apricot sector has dropped significantly in the last five years, as competitor sources extend their seasons and introduce new, and often more economical, lines.
EXOTICS
Although they have now passed more or less into the mainstream on UK shelves, avocados are still largely categorised under the exotic banner. Spain’s heavy dependence on green skin varieties Fuerte and Bacon saw it lose some of its market share in the UK. But with more Hass being planted in recent seasons and UK customers looking for consistent quality and availability, there is undoubtedly a long-term niche market for Spanish avos, if not a major volume opportunity.
Last year, exports to the UK reached 6,738t, as the Spanish marketed their biggest export crop for some time.
Spanish growers are amongst the world’s leading cherimoya producers and the country is a major exporter to the EU markets. Although it takes around 10 per cent of sendings, the UK market has an enormous amount of potential for growth in the area of exotics in general. Spain will be well-placed to take advantage if or when the consumption expansion takes place.
Growers have invested heavily in cherimoyas in recent years to produce improved varieties and handling procedures to enhance the fruit’s performance during transit. The quality on arrival of the Spanish cherimoya crop, mostly grown in Andalusia, is now not in doubt. The large Asian population in the UK ensures that there is a ready market, but while sales opportunities have increased, the feeling persists that to expand the cherimoya market in the UK, effective promotion and consumer education are vital.
Spain’s growers are also hopeful that promotional work for pomegranates, carried out by another major source, will have a knock-on benefit for the entire category. The Asian and Jewish communities are the biggest purchasers of pomegranates, but wider exposure of the health properties of the fruit, while focused mainly on juice drinks, is likely to entice shoppers to investigate the fresh offer.
The country, of course, is home to growers of just about any fresh product you could mention, and other exotics that have had limited success in the UK to date include kiwifruit, medlars, mangoes and lychees. The economics of production and logistics of fruits in the exotic category are such that in any season of heavy supply, the Spanish grower has limited potential to make a mark in the UK retail market, but there are plenty of niche opportunities in the non-retail sectors and exporters have built a reputation for quietly working these windows over the years.
While exact export figures for individual exotic products are not collated, the fact that they make up the biggest proportion of the section marked “other fruits” and “other vegetables” which add up to 170,000t of export volume is enough of a pointer to suggest that exotics have a rich seam of potential still to be enjoyed by growers, exporters and their customers alike.
ESSENTIAL ORGANIC TAKE-UP
Organic produce has become an integral part of Spanish production as growers recognised the need to add a serious organic string to their bow in order to maintain their position as an important link in securing those vital year-round supplies. From high-volume to niche lines, growers have responded well to market demand for an organic offer to reflect consumer trends.
Traditionally, the organic emphasis in Spain was firmly on livestock, cereals and olives, but growers were persuaded by both latent demand and regional and national government support for land conversion to invest in the sector. A strategic plan was put in place for the fresh produce industry for 2004-06 and, at the halfway stage, appears to have been achieving its objectives.
While it has levelled off in the last couple of years, organic consumption in the UK continues to increase year-on-year. The exponential growth that characterised production in the mid to late 1990s has steadied, but for growers that took the plunge and invested in the organic ideal, demand remains assured even if the organic price premium has reduced.
Spain has been crucial in the move to increase organic uptake through a more consistent and reliable offer. Production across the country has risen by more than 400 per cent in the last decade, with the vast majority grown specifically for the export market. Until relatively recently, Spain’s domestic organic consumption was very low in comparison with other EU markets, but it is beginning to grow gradually. More than 75 per cent of organic product grown in Spain is exported.
Every major growing region has taken up the gauntlet and there is a mix of companies that specialise in organic production and those that have added an organic arm to their conventional business.
AENOR SETS THE STANDARD
The UK market is renowned for the exacting standards it requires all stages of the chain to adhere to. Spain could not have reached its lofty position as an exporter to the UK without a commitment to continuously updating its own internal standards and taking international standards such as EurepGAP, HACCP and BRC, not to mention the individual supermarket standards, on board.
Internally, Aenor is a national, independently audited scheme created with full backing from the Spanish national government and Fepex, the Spanish federation of fruit, vegetable and plant producers’ associations in 1997.
It very rapidly enhanced environmental standards through the minimum use of chemical pesticides, while providing full traceability throughout the production and distribution chain. The protocols were established through working with growers at a cost of €2m.
The certification system has spread rapidly through Spain’s main vegetables, salads and soft fruit export crops and is now poised to become active for kiwifruit and bananas.
It is a quality label that producers apply for voluntarily and it guarantees compliance with UNE standards and specifications. It gives receivers the assurance that the product has been grown using environment-friendly methods and that it has been inspected: Aenor inspections are carried out every two to four months. Samples are taken and analysed for pesticides residues and to ensure the absence of prohibited inputs and that only certified product can use the Aenor label. EurepGAP-recognised and accredited by Enac, the Spanish accreditation body, the system is further enhanced by full traceability of product by means of delivery notes and invoices to differentiate it from non-certified product.
The scheme started as a response to the sector’s need for a quality label to demonstrate compliance with the most demanding market requirements, at the same time offering customers reliability and consumers food safety.
But it has also led to greater rationalization and cost savings for growers within their businesses and has helped generate continuous improvement.
Fepex represents more than 900 companies through its nine regional member associations and between them they account for over 70 per cent of Spain’s non-citrus fresh produce exports.
FEPEX GROUPS BY ASSOCIATION
Spanish exporters association FEPEX consists of 32 member associations, representing more than 1,500 companies. Fifteen of those members are dedicated to fruit and vegetable export in the major intensive production areas of Almería, Huelva, Seville, Cádiz, Canary Islands, Murcia and Valencia. Regions such as Extremadura and Aragón, where production is less intensive, are also represented.
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