Catalonia increases its agri-food exports by 16.42% in the first quarter of 2020

• It will be necessary to observe the data from the second quarter of 2020 to grasp the real effect of Covid-19 on exports.
• The subsectors that grow the most in value are meat (34.37%), benefited by demand from China, and fruit and vegetables (28.31%).
• Catalonia maintains a trade surplus in agri-food matters in the first quarter of 2020.
• The agri-food sector and its exports are positioned as one of Catalonia's engines to combat the economic effects of the pandemic.

Catalonia's agri-food exports have grown by 16.42% in value and 4.30% in volume between January and March 2020 compared to the same period last year, according to provisional data from Datacomex, the European foreign trade database.

Although it will be necessary to observe the data from the second quarter of 2020 to assess the real effect that Covid-19 has had on agro-food exports as a whole, these results show part of the consequences of the pandemic, since the state of alarm was decreed on March 14, 2020 and that, therefore, the effects on export data only cover the second half of March, where many orders were already in the export process and, probably, increased to maintain a stock in case of confinement.

In any case, the export data for the period January to March 2020 show that exports will be one of the key elements for the recovery from the serious economic effects of COVID-19. They also make it clear that food is a sector that, in times of crisis, continues to be the engine of the economy in Catalonia, demonstrating its ability to continue working in the face of adversity.

Taking these premises into account, and sticking exclusively to the available data, it can be observed that, starting from the Prodeca Index* which regroups various sub-items of the TARIC code into 7 sub-sectors to simplify the analysis of agri-food exports, those that grow the most in value are meat (34.37%), benefited by demand from China, and fruit and vegetables (28.31%). Vegetable oils also stand out, but below average (15.55%).

Likewise, it must be taken into account that the Asian markets are the ones that are first recovering from the crisis on a global scale. These are already in growing demand, especially in terms of food and drinks.

The meat and Fine Food sectors continue to be the drivers of agri-food exports

Meat remains the leading agri-food exporting sector with 41.25% of the total and a 34.37% increase in value and 3.22% in volume. It is led by pork, which represents 28.17% of all agri-food exports (69.03% of the meat sector) with a growth of 42.51% in value and 5.20% in volume.

Second place corresponds to Fine Food products, with 28.38% of the total exported in value and with a growth of 3.86% in value and 6.57% in volume. This sector is led by the following subcategories: snacks and appetizers, bakery and pastry products, cereal-based products, nuts, rice and legumes (24.58% of the total Fine Food sector), sweets, cocoa and its preparations, confectionery, honey, coffee, tea, infusions (22.74%), vegetable juices, waters, beers, drinks and liquids (15.88%), extracts, essences and concentrates, ingredients, soup preparations (13.89%), prepared dishes, broths, preserves, jams and jams (10.56%) and cheeses, dairy products and eggs (5.21%).

Vegetable oils occupy the third position with 6.85%. This category grew by 15.55% in value and 7.65% in volume. Soybean oil leads the growth in value of the category with 120% and olive oil, despite decreasing by 28.84% in volume, only does so by 4.13% in value.

The export capacity of the fruit and vegetable sector places it in fourth position (6.01%). It registered an increase in value of 28.31% and 15.56% in volume.

The wine and cava sector, fifth sector, represent 4.24% of Catalan exports. Exports decreased by 3.18% in value, although they increased by 6.82% in volume compared to the same period in 2019.

Cereals, milling and seeds account for 3.48%, and there is an increase of 2.97% in value despite the decrease in volume of 11.78%.

The fish and seafood sector, in sixth position, represents 1.91% of agri-food exports and decreases by 10.51% in value and growth by 6.72% in volume despite presenting the best value/volume ratio.

China, second destination market doubling its value

Although the main destination markets remain (France, Italy, Germany, Portugal, the United Kingdom and Japan), China stands out, which in 2019 was already positioned as the sixth destination market, increasing Catalan agri-food exports by 58.29% in value. During the first quarter of 2020, it has been ranked as the second destination market in terms of value, surpassed only by France, and with an increase compared to the same period last year of 196.36%.

On the other hand, Catalonia has increased its agri-food exports to Japan, the seventh destination market, by 14.32%.

The United States, eighth market in 2019, lost two positions with a decrease in imports of agri-food products from Catalonia of 7.98%.

There are also significant increases in Morocco (98.12%), Hungary (39.23%), Saudi Arabia (34.23%), the Philippines (26.56%), Poland (25.84%) and Romania (22.37%).

As for the markets with notable decreases in value, we find South Korea (-32.37%), Mexico (-23.58%) and Russia (-23.78%).
 

The surplus is maintained

Catalonia achieved an agri-food trade surplus for the first time during the first half of 2019 and consolidated it overall for the entire year 2019. In this first quarter of 2020, the surplus is maintained with a coverage rate of 108.47, that is to say, exports of agri-food products (€2,728.39 M) are slightly higher than imports (€2,515.32 M).

The coverage rate, which balances exports and imports, is an economic indicator that, together with the increase in value, gives us a view of the competitiveness of Catalan companies and their commercial appeal, as well as their productive and exporting capacity.

Agricultural exports are growing in value

Evaluating the value/volume ratio of the first quarter of 2020 compared to the same period of the previous year, it has grown by 11.62%, indicating that, as a whole, the products with the highest value are being sold.

With regard to the increase in the value of the subsectors, Catalonia's agri-food products are paying better in 2020 compared to 2019, highlighting the percentage increase in the following sectors: meat (30.17%), fruit and vegetables (11.03%), and vegetable oils (7.34%). Fish lose value (-16.15%) and wine and cava (-9.36%).

The study of Catalonia's agri-food export data has taken into account for each sector the products specified below.

• Meat sector: meat, live animals, processed meats, sausages, meat preparations and preserves, animal offal and animal oils and fats.

• Fine Food sector – multi-product: dairy products, honey, eggs, pastry products, confectionery and sweets, coffee, tea and infusions, sauces, ice cream, beer, water, fermented drinks, distillates, preserved vegetables, preserved fish and seafood, vinegars, fruit preparations, fruit jams, juices.

• Fruit and garden sector: fruit, nuts and vegetables.

• Oil sector: olive oil and other vegetable oils.

• Wine and cava sector: wine, cava and other grape wines.

• Fish and shellfish sector: fish, shellfish, fish oils and fats.

• Cereals, milling and seeds sector: cereals, milling products and seeds.

TARIC correspondence:

• Meat sector: CHAPTER 1 - LIVE ANIMALS, CHAPTER 2 - EDIBLE MEAT AND OFFALS (Except headings 020820, 020830, 020840, 020850, 020860, 02089030 and 02089060), CHAPTER

15 - ANIMAL AND VEGETABLE FATS AND OILS (only headings 1501, 1502, 1503, 1506 and

151610), CHAPTER 16 - PREPARATIONS OF MEAT, FISH OR CRUSTACEANS (1601 and 1602),

CHAPTER 23 - WASTE (only item 230110).

• Fine Food sector – multi-product: CHAPTER 4 - MILK AND DAIRY PRODUCTS; POULTRY EGGS; NATURAL HONEY; EDIBLE PRODUCTS, CHAPTER 9 - COFFEE, TEA, mate and spices, CHAPTER 13

  • GUMS, RESINS AND OTHER VEGETABLE JUICES AND EXTRACTS (heading 1302 only), CHAPTER 16 - PREPARATIONS OF MEAT, FISH OR CRUSTACEANS, MOLLUSCS OR OTHER AQUATIC INVERTEBRATES (headings 1604 and 1605 only), CHAPTER 17 - SUGARS AND CONFECTIONERY ARTICLES, CHAPTER 18 - COCOA AND THEIR HIS PREPARATIONS, CHAPTER 19

  • PREPARATIONS BASED ON CEREALS, FLOUR, STARCH, STARCH OR MILK; PASTRY PRODUCTS, CHAPTER 20 - VEGETABLE, FRUIT OR OTHER PREPARATIONS

FRUITS OR OTHER PARTS OF PLANTS, CHAPTER 21 - MISCELLANEOUS food preparations,

CHAPTER 22 - BEVERAGES, alcoholic liquids and vinegars (only heading 2201, 2202, 2203, 2206, 2207, 2208 and 2209).

• Fruit and garden sector: CHAPTER 7 - VEGETABLES, PLANTS, ROOTS AND FOOD TUBERS, Chapter 8 - FRUITS AND EDIBLE FRUITS; CITRUS (CITRUS), MELON OR WATERMELON PEELS.

• Oil sector: CHAPTER 15 - ANIMAL AND VEGETABLE FATS AND OILS (only items 1507, 1508, 1509, 1510, 1511, 1512, 1513, 1514, 1515 and 1516 except 151610).

• Wine and cava sector: CHAPTER 22 - BEVERAGES, alcoholic liquids and vinegars (headings 2204 and 2205 only).

• Fish and shellfish sector: CHAPTER 3 - FISH AND CRUSTACEANS, MOLLUSCS AND OTHER AQUATIC INVERTEBRATES, CHAPTER 15 - ANIMAL AND VEGETABLE FATS AND OILS (heading 1504 only), CHAPTER 23 - WASTE (heading 23012000 only).

• Cereals, milling and seeds sector: Chapter 10 - CEREALS, CHAPTER 11 - MILLING PRODUCTS; MALTA; STARCH AND STARCH; INULINA; WHEAT GLUTEN, CHAPTER 12 - OIL SEEDS AND FRUITS; MISCELLANEOUS SEEDS AND FRUITS; INDUSTRIAL OR MEDICINAL PLANTS; STRAW AND FORAGE

Sources: Datacomex - A.E.A.T Knowledge and Strategy Area of Prodeca