Challenges of Spanish organic sector

Posted on May 28, 2017 in Marketing y Estrategias bio

Despite the positive export figures, the greater growth rate of imports and the imbalanced behavior compared with conventional exports constitute the main challenges of the organic external sector.

The first challenge is the gap between the type of product that we export compared with what we import. The Spanish export offering is mainly fresh produce, wines and oils. However, the demand for organic products with high added value by the Spanish consumer raises the imports. This issue may have been caused by the lack of development in the industry unable to meet the needs of local consumption.
Additionally, analyzing the behavior of the conventional trade market, it is observed that the growth rate of trade balance during 2015-2016 was 15.47% compared with -15.04% of the organic trade balance rate.

The structure of the national organic sector, where SME’s mainly operate may be generating a lack of competitiveness regarding the conventional agri-food sector.

New marketplaces

Even though European growth is expected to be impressive in coming years there is a lot of room for growth internationally; emerging economies present numerous opportunities where there is an increasing interest in organic consumption.

With the implementation of the new regulatory framework and certification standards in place since 2015, China has had astounding growth both in the productive sector and the internal market.

According to official statistics, in terms of production, China has hold the third position globally for the amount of area used for organic agriculture with a 42% growth rate last year; from 1.6 to almost 2.3 million hectares.

The absence of mutual organic regulations between the EU and China forces European operators to obtain a local certification to be able to export to China. However, the development of the Chinese local market reflects an important evolution with a 26% growth rate last year from € 4.700 million to € 5.900 million and provides an interesting commercial opportunity for Spanish operators as well as others, such as Italian, French and Greek companies that are currently operating there.