Spain leads EU in fruit and vegetable production

Spain is ranked among the top five most competitive agri-food sectors in the European Union, according to the 2024 Observatorio Agroalimentario compiled by Cajamar in collaboration with the Ministry of Agriculture. The report highlights Spain’s position as the world’s seventh-largest exporter of food and beverages, and fourth within Europe.

In 2024, the Spanish economy expanded by 2.9%, with the agri-food sector contributing 8.6% to GDP and posting a record trade surplus of €48 billion (US$52bn). Added value grew by 3.9% compared to the previous year. The primary sector in Spain accounted for 12% of the gross added value generated across the EU, marking stronger growth than in most member states.

Spanish farms and food processors are among the most cost-efficient in Europe, ranked fourth after the Netherlands, France, and Poland. This competitiveness is largely attributed to low unit labor costs. While employment in the sector has declined, productivity has increased. Workers in Spain’s primary sector generate about 60% of the EU average output per head, but lower labor costs sustain its competitive position.

Spain is the EU’s leading producer of fresh fruit (18%) and citrus (48%), and ranks second in fresh vegetables (19%) and plants and flowers (16%). These figures reinforce Spain’s reputation as Europe’s orchard.

Export dynamics show both strengths and vulnerabilities. Fruit and vegetables continue to dominate export earnings, although price fluctuations and competition across Europe pose ongoing challenges.

International trade negotiations present further uncertainty. Discussions with the United States remain complex, the Mercosur agreement is stalled, and a planned deal with Ukraine has been suspended. Spanish authorities have pledged to defend producers’ interests “until the last minute.”

The report also points to a lag in innovation. Investment in agri-food R&D and digitalization has fallen by 3% in relative terms, leaving a 31% gap between sector output and reinvestment. This raises concerns over Spain’s ability to compete with both EU peers and global exporters.

With new CAP negotiations approaching, Spain is expected to argue for a balance between competitiveness and the protection of family farms. For now, exports are growing and food price inflation remains low, but policy decisions in the coming 18 months will be critical.

Source: MLVVN

Frontpage photo: © Bruce Whittingham | Dreamstime

Publication date:

Mon 1 Sep 2025

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