Spain has been recognised as one of the top five most competitive agri-food sectors in the European Union, as highlighted in the 2024 Observatorio Agroalimentario report compiled by Cajamar and the Ministry of Agriculture. The findings reveal Spain’s prominent position as the world’s seventh-largest exporter of food and beverages, and the fourth largest within Europe. In twenty twenty-four, Spain’s economy expanded by two point nine percent, with the agri-food sector contributing eight point six percent to its gross domestic product and achieving a record trade surplus of forty-eight billion euros.

The report indicates that the primary sector in Spain accounted for twelve percent of the gross added value generated within the EU, reflecting a growth rate surpassing that of most member states. Spanish farms and food processors are ranked as the fourth most cost-efficient in Europe, following the Netherlands, France, and Poland. This notable competitiveness is primarily due to low unit labour costs. Even though employment in the sector has decreased, productivity remains strong, with workers generating approximately sixty percent of the EU average output per head.

Spain continues to hold the position of the EU’s leading producer of fresh fruit, with an eighteen percent share, and citrus at forty-eight percent, also ranking second in fresh vegetables and plants and flowers. These statistics reinforce Spain’s image as Europe’s orchard, although the dynamics of exports reveal both strengths and vulnerabilities. Price fluctuations and competition within Europe persist as ongoing challenges, compounded by uncertainties in international trade negotiations.

Spanish authorities are committed to defending producers’ interests during these negotiations, particularly as discussions with the United States are complex and other agreements such as Mercosur and Ukraine remain stalled. Additionally, the report highlights a concerning lag in innovation, with a three percent decrease in investment in agri-food research and development and digitalisation. With new Common Agricultural Policy negotiations on the horizon, Spain aims to advocate for a balance between maintaining competitiveness and protecting family farms. While exports are currently on the rise and food price inflation stays low, upcoming policy decisions over the next eighteen months will be crucial for the sector.