Kay’s Cuts: The $ 3.65 billion push of the Spanish meat business in the direction of better animal welfare and sustainability

A month-to-month column written on the world beef commerce by Steve Kay, editor of US Cattle Patrons Weekly

I simply returned from a ten day journey to Spain, considered one of my favourite nations to go to in Europe.

I primarily stayed in Barcelona and as soon as once more loved its magnificence, tradition, meals and extra. I additionally took a two-day journey to the foothills of the Pyrenees, the place I noticed up shut each the attractive countryside stuffed with pastures and dense inexperienced forests, but additionally the Spanish livestock business.

Whereas driving by way of the area, I noticed quite a few herds of beef cattle, a few of which seemed to be Charolais however have been extra prone to be one of many 49 native beef breeds Spain has.

I noticed 1000’s of spherical hay bales standing in what have been usually fields not more than a few acres. I additionally noticed ultra-modern barns up shut, whose roofs little doubt gave the cattle some respite from the scorching solar.

I’m not presumed to attract conclusions after what has been only a superficial style, however it has appeared that the Spanish livestock and beef business is flourishing and is a vital a part of the nation’s total economic system. However it is usually in transition.

In a current report, the USDA stated that after years of accelerating animal protein manufacturing, Spain is now taking a unique method for its livestock sector.

The technique of the Spanish livestock sector is now targeted on a extra managed growth and diversification of export markets.

Your complete Spanish meat sector, together with cattle and pigs, is keen to take a position round $ 3.63 billion, partly by way of the European Union’s Subsequent Technology funds, to enhance animal welfare, sustainability, effectivity and to modernize the sector.

Spanish livestock manufacturing contributes greater than $ 17 billion to the nation’s agricultural manufacturing, whereas the nation’s meat business has a turnover of greater than $ 30 billion, the USDA says.

This represents 22.6% of the full Spanish meals business, making it the main sector with exports of $ 10.4 billion.

Shrinking livestock shares

Nonetheless, the brand new method might result in a contraction in livestock inventories by 2022 as producers want to decrease environmental affect and discover various export markets to China.

Rubia Gallega cattle, one of many many meat breeds of the Spanish heritage

In 2020, official Spanish knowledge for cattle and beef confirmed a slight decline in manufacturing as a result of COVID pandemic and rising feed costs. In 2020, the slaughter of Spanish livestock decreased by 3.5% to 2.4 million animals. Spanish beef manufacturing additionally decreased 2.6% to 677,740 tons, whereas carcass weight elevated 1% to 279.5 kg from delays to slaughter as a result of closure of the hospitality sector.

In accordance with the sector, cattle slaughter in Spain doubtless decreased by 2.4% in 2021, primarily attributable to a discount in calf slaughter, and by 3.5% in 2022 attributable to low financial efficiency and intent. of Spanish farmers to scale back manufacturing.

In accordance with the USDA, Spanish cattle herd shares for 2022 might lower by 1.1%. In 2020, Spanish beef exports grew 4% to 231,000 t and US $ 903 million, fueled primarily by an 8% improve in exports to the EU, significantly to Italy and Greece. This stage of exports and a lower in imports led to the second optimistic commerce stability since 2000 of US $ 289 million. This optimistic pattern continued from January to July 2021.

In 2020, Spain exported 85% of its beef to different EU member states, primarily to Mediterranean nations, the USDA says.

Export aims of China and South Korea

Since 2020, Spanish beef exports have recorded important will increase in Canada, Indonesia, Vietnam and Hong Kong. In accordance with the Spanish beef business, Spain’s beef exports in 2020 underwent a shift in commerce stream from North Africa to new markets.

Moreover, the Spanish beef sector remains to be working to open up China and South Korea. In accordance with business sources, Spanish beef exports to non-EU markets are anticipated to return to regular ranges in 2021, persevering with with its pattern. optimistic in 2022, the USDA says.

Exports are due to this fact the lifeblood of the Spanish beef business, as they’re for Australia.

Improve in US exports

In distinction, U.S. beef exports account for less than 15-17% of whole manufacturing. However they’re additionally necessary for the well being of the business.

In distinction to Australia’s meager exports, US exports have exploded thus far this 12 months and have maintained their excellent efficiency in Could and June, with no indicators of slowing regardless of ongoing challenges.

Exports have set new data in quantity and worth, surpassing $ 1 billion for the fourth time this 12 months.

Beef exports to the USA in Could reached 135,000 tons, up 1% from the earlier excessive recorded in Could 2021. The worth of exports rose 20% to $ 1.09 billion, breaking the report. March 2022. From January to Could, beef exports elevated by 4% in comparison with a 12 months in the past to 613,266 tons, for a price of 5.14 billion {dollars} (+ 34%).

Extra importantly, the Could beef export worth averaged $ 505 per feed slaughterhouse, up 17% from a 12 months in the past, which broke the earlier report of $ 503 set in January 2022. , states USMEF. As much as Could, the worth of exports per capita averaged USD 483.49, up 34% in comparison with the primary 5 months of 2021. That is how necessary our exports are.

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