The pork market - Spain

1.2 The world market affected by African swine fever

World pigmeat production is estimated at ***.* million tonnes in **** by the European Union USDA (***). The main producers are China and the European Union, which together account for more than **% of world production and consumption

Source: ****

However, the sector is expected to be heavily affected by the outbreak of African Swine Fever. For example, the USDA estimates that production in China is expected to fall by **% in ****. Such a decrease would result in higher pork prices worldwide, since China, in addition to being a major producer, is also a major consumer.

This should have significant consequences in the long term and negatively affect a sector in the long term, so average annual growth was estimated at *.*% between **** and ****. [***]

1.3 Pork market in Spain is in good shape

Spain is a country where the meat sector represents a market of **.* billion, or *% of GDP according to El Mundo and employs nearly **,*** people . Livestock farms, slaughterhouses, cutting plants and processing industries are characteristic of a very strong SME industrial fabric. According to the same source Spain is the world's fourth largest producer of pigmeat This is behind China (***), the United States and Germany.

The pork market is growing in Spain

Because of the overgrowth of the pork industry the the annual number of pigs slaughtered is already higher than the annual number of inhabitants of the country **.* million in **** and the volume keeps increasing Spain is thus the leading European pig producer . [***]

Pigmeat activity accounts for a significant amount of approximately EUR *.* billion and is mainly export tour with *.* million tonnes exported in **** . Exports have been supported by rapid growth in the sector, with an increase in slaughter volume of more than **% over the last four years after doubling over the previous six years. The main causes of this increase in slaughterings are the technical progress (***) and increased production by pig feed producers looking to move downstream.

Spanish market supported by healthy exports

L *.* billion in ****, and the trade surplus ...

2.1 Pork, the second most important meat consumed in Spain

Pork consumption in Spain, in all its forms and in ****, represented a turnover of *.** billion euros for distributors. [ Ministry of Agriculture In ****, pork was the second most consumed meat per capita by volume, just behind chicken. (***).

While the consumption of fresh pork meat has been declining year after year since ****, it is clear that processed pork products have managed to maintain their place in the Spanish diet.

Source: ****

As a result, the consumption of fresh pork has fallen from **.* kilograms per capita in **** to less than ** kilograms per capita in ****

Source: ****

2.2 Outbreak expenditure on pigmeat remains stable

According to the Ministry of Agriculture the annual expenditure of Spanish families for the purchase of fresh pork meat remains relatively stable since **** (***).

Source: ****

Besides.., individual expenditure on pork has decreased slightly since **** **.** in ****, up from **.** euros per individual in ****. This reduction in expenditure is linked in particular to a fall in the consumption of fresh pork in volume terms.

Source: ****

2.3 Socio-economic profile of pork consumers

The data made available by the Ministry of Agriculture make it possible to establish a relationship between meat consumption and income level as well as age. The older and wealthier Spaniards are (***), the more likely they are to consume fresh pork. The following graph is established by dividing the per capita meat consumption of each socio-demographic category by the national average. The resulting figure is then multiplied by ***.

Source: ****

A similar analysis can be conducted in relation to processed meat. Age matters less, so does income. On the other hand, it is couples with children who consume most of the products made from processed meat (***). For example, couples with teenage children consume **.*% more processed meat than their share of the population. The following graph is obtained by dividing the share of each socio-demographic category in processed meat purchases by the share of that category in the total population. The figure obtained is then multiplied by ***.

Source: ****

2.4 The evolution of food consumption in Spain

Spaniards are paying more and more attention to the quality of the food they eat as well as to their health. This trend is encouraged by people's desire to take care of their bodies and the environment. For example, around **% of Spaniards between the ages of ** and ** are following an anti-ageing diet. [***]

This trend is also accompanied by a desire to consume Spanish products. Around **% of the products bought in shops in Spain are bought under a Spanish label.

Special diets (***) are also gaining ground and mechanically decrease meat consumption among these populations. In ****, according to a study commissioned by Lantern :

*.*% of Spaniards said they were fexitarized *.*% of Spaniards said they were vegetarians *.*% of Spaniards claimed to be vegan

Meat quality, slaughter conditions and nutritional intake are therefore increasingly important factors that farmers and distributors must take into account.

3.1 Pork production is up sharply

The value chain of the pork industry is largely focused on the breeding, production and processing of pork

The production of pork goes through several important stages. The longest is the rearing stage, which can be intensive (***). [ Ministry of Agriculture After slaughtering and cutting, which are generally tasks delegated to specialized food industries, comes processing.

Finally, marketing can be done through different channels (***).

Pig production in Spain has been steadily increasing since the ****s

According to the Ministry of Agriculture the number of pigs slaughtered went from ** million hogs in **** to over ** million hogs in **** which represents an average annual growth rate of *,*% .

Source: ****

The average weight of slaughtered pigs has remained relatively stable year after year, increasing from an average of *.* kg for piglets in **** to *.* kg. Pigs fattened with cereals are, however, slaughtered when they weigh an average of **.* kg in ****, compared to **.* kg in ****.

Pig farming is fairly concentrated in Spain in Aragon and Catalonia

According to the Ministry of Agriculture , the number of pigs reared in Spain is over ** million The two regions with the highest concentration of pigs reared are Catalonia (***), which shows the intensive nature of the holdings in Catalonia and Aragon and the extensive ...

3.2 Pork is mainly bought in supermarkets

According to the Ministry of Agriculture In the United States, supermarkets accounted for almost half of the sales of fresh pork to consumers. Traditional stores, such as butchers and grocery stores, accounted for more than a quarter of sales. The sector remains relatively little affected by e-commerce, which accounts for only *.*% of sales volume.

Source: ****

Processed meat, which includes bacon, sausages, etc., is mainly distributed in supermarkets, hypermarkets and Hard Discount stores, which together account for almost **% of sales volume in Spain.

Source: ****

4.1 Prices remain relatively stable

According to Ministry of Agriculture consumer prices for pigmeat have remained stable at between EUR *.** and EUR *.** per kilogram on average since ****.

Source: ****

The prices vary, however, depending on the distribution channel Thus, in ****, hypermarkets and Hard Discount stores marketed respectively fresh pork *.** euros per kg and *.** euros per kg against *,** € per kg in traditional shops .

Source: ****

According to Genesus *.*** per kg in ****. However, the average price in **** was €*.***/kg compared to €*.***/kg in ****, i.e. an increase in the producer price between **** and ****.

4.2 The 7 different types of pigs important in Spain

According to Sabor Artesano The main breeds of pigs present in Spain are

The iberian pig This is a typical southern Iberian ham, with a small head weighing between *** and *** kg, used to produce Iberian ham, chorizo, sausage and bacon.

The pork Duroc Serrano ham is a breed from the United States, although it has spread all over the world due to its high growth value and the quality of its meat (***), which is excellent for the production of Serrano ham.

The broad pork white native to England, has a white colour and pink pigmentation, and has spots on its skin. They tend to be long and wire-haired, abundant but not excessively so. Males reach about *** kg and females about *** kg.

The pork LandRace from Denmark and having a low fat value is used for its high percentage of ham present.

The pork Pietrain from Belgium is the one with the highest percentage of noble pieces, but with sufficient intramuscular fat. It is one of the breeds with the highest percentage of PSE (***). In Spain, there are around *,*** females of this breed, considered one of the most muscular in the world, as well as possessing the optimum qualities for breeding and ...

5.1 European regulations on animal welfare

According to Carnica to date, all pig farms in Spain are in accordance with European regulations on animal welfare The new January *, **** . The objective of this Regulation is to establish minimum standards for the protection of pigs, while helping to improve and maintain the competitiveness of livestock exports s, thus creating a market of higher quality This is compatible with the European model and enables the company to gain positions on foreign markets.

These changes have resulted in a facility upgrades in order to give the animals more space and comfort and living conditions similar to those of their natural habitat.

With all these measures, animals have a better quality of life since their food, rest and development take place in the best conditions The new system has been specially designed for their wellbeing. Well-being that translates into higher quality products for consumers The United States is a major beneficiary of this standard.

6.1 Segmentation

List of generalists of pigmeat production in Spain

CEFU Piensos Costa INGA Food Juan Jimenez Garcia Agropecuaria del Centro Agrocesa Cuarte ICPOR Soria General Pecuaria Comercial Pecuaria Segoviana Granja Dos Hermanas Grupo Premier Pigs Porcisan

• Cefu Sa
• Piensos Costa
• INGA Food
• Juan Jimenez Garcia - JISAP
• Agropecuaria del Centro Agrocesa
• Cuarte
• ICPOR Soria
• General Pecuaria (Gepesa)
• Comercial Pecuaria Segoviana (Eresma)
• Granja Dos Hermanas
• Grupo Premier Pigs
• Porcisan