Market Trends of Spain Compound Feed Industry
Surge in Meat Exports Fuels Demand for Cereal Feed
The rising commercial production of livestock has led to an increase in the export market, as there is a growing demand for animal products such as meat, milk, and eggs in other countries. According to the International Trade Center (ITC) Trade, in 2021, the export market value for meat in Spain reached USD 11.01 million in 2023 from USD 9.91 million in 2022, primarily due to heightened demand from China, France, Portugal, and Italy.
Furthermore, Spain is one of the world's fourth-largest pork producers known for its high-quality ham and other cured meat products. Other popular meat exports from Spain include beef, poultry, and lamb. The Spanish meat industry, and in particular, the pig production industry, has made significant strides in modernizing and automating production processes. This has led to increased efficiency, productivity, and cost-effectiveness, making the industry one of the most advanced in Europe. This calls for a heightened demand for Spanish meat in Europe and worldwide.
For instance, according to ITC Trade map, in 2023, the swine meat export of Spain was valued at USD 6,765,823 thousand compared to USD 5,922,708 thousand during the previous year. China is the major importer of swine meat, accounting for USD 737,031 thousand, followed by Japan, with a value of USD 650,756 thousand. Consequently, the growing meat export industry has significantly increased the demand for cereal feed, as cereals like corn, wheat, and barley are essential components of livestock feed, especially for pigs and poultry.
Increasing Efficiency in Feed Production to Meet the Market Demand
Swine dominates Spain's compound feed market, primarily due to the nation's robust pork production industry. As one of Europe's leading pork producers and exporters, Spain's expanding swine population directly fuels the demand for compound feed. For instance, according to FAOSTAT, Spain's swine meat production rose from 4.64 million metric tons in 2019 to 5.07 million metric tons in 2022. Consequently, as swine meat production continues to climb, the compound feed industry stands to gain.
In Spain, the livestock sector grapples with the challenge of meeting the surging demand for meat and premium animal protein. Population growth, rising incomes, and urbanization have all contributed to this uptick in livestock production. With a growing awareness of the importance of protein-rich diets, a notable increase in the consumption of animal protein is on the horizon. This trend is set to bolster market growth, especially with the emphasis on high-quality feed for swine, given pork's status as a top choice among Spanish meats.
Moreover, the majority of Spain's pig farms utilize intensive farming methods, raising pigs in controlled settings that demand consistent, nutritionally balanced feed. This intensifies the need for compound feed, especially formulations rich in energy and protein. Additionally, Spanish feed mills are predominantly located in regions like Catalonia and Aragon, known for their substantial swine populations and pig farming activities. This regional concentration underscores the prominence of swine in Spain's compound feed landscape.
