Pork production in Spain declines due to lower exports and animal welfare regulations

Spain's pig sector expects the downward trend in hog and pork production to continue in 2023 and 2024 to just under 5 million tonnes of pork and under 55 million heads slaughtered.

Industry sources forecast a decline in pig, sow and piglet numbers in Spain in 2023 and 2024, after reaching record levels in 2022. The decline in sow and piglet numbers in 2023 will be partly offset by increased imports of piglets from the EU , mainly from the Netherlands and Portugal.

According to industry representatives, the main driver of this decline, in addition to the expected decline in pork exports to China and other non-EU markets, is Spain's Royal Decree 159/2023 on animal welfare, which includes stricter requirements for the housing of pigs than in EU. Existing farms will be given two years to adapt. Because of these adjustments, sow and slaughter pig numbers could continue to decline in 2023 and 2024, with higher carcass weights required to reach pork production levels just below five million tonnes. The industry expects another increase in sow slaughter in 2023.

In 2022, according to the Spanish Ministry of Agriculture, consumption of fresh pork in Spanish households fell by almost 11% due to rising pork prices. At the beginning of 2023, Spain took measures to mitigate food inflation by reducing the value added tax (VAT) from 4 to 0 percent on basic food products (excluding meat products) until December 2023.  

The pork industry estimates that Spanish pork sales to non-EU markets will continue to decline in 2023 due to lower demand from China and rising pork prices in Spain. Exports to the EU may remain strong due to pork shortages in other member states. In the first half of 2023, Spanish pork exports increased in value by 13.5%, driven by higher unit costs of pork offsetting a 9% decline in volumes.

In terms of imports, other EU member states are the main suppliers of pork to Spain. Pork imports into Spain from non-EU markets account for only two percent of total imports. Due to rising pork prices in both Spain and the EU, pork imports into Spain from markets outside the EU, where pork prices are lower, may continue to increase, with products mainly destined for pork processing plants.