Catalonia increases its agri-food exports by 9.18% in the first half of 2020

• The global turnover of the first half of 2020 (€5,420.43M) exceeds that of the same half of 2019 (€4,964.70M), maintaining the commercial surplus.
• Evaluating the value/volume ratio of the first half of 2020 compared to the same period of the previous year, it has grown by 4.61%, indicating that, as a whole, the products with the highest value are being sold.
• The subsectors that grow the most in value are fruit and vegetables (25.28%) and meat (21.66%), benefiting from demand from China.
• The agri-food sector and its exports are positioned as one of Catalonia's engines to combat the economic effects of the pandemic caused by Covid-19.

Catalonia's agri-food exports grew by 9.18% in value and 4.37% in volume between January and June 2020 compared to the same period last year, according to calculations based on provisional data from the Tax Agency

The figures show part of the incidence of the pandemic caused by Covid-19, declared on March 11, 2020 by the WHO. This had the first visible effects on exports from the April data, where the growing trend began to slow down compared to 2019. On the other hand, in May foreign trade was below the results of the same month of 2019. However, the global turnover for the first half of 2020 (€5,420.43M) is higher than for the same half of 2019 (€4,964.70M), favored by the good figures for June 2020.

Agricultural exports are growing in value

Evaluating the value/volume ratio of the first half of 2020 compared to the same period of the previous year, it has grown by 4.61%, indicating that, as a whole, the products with the most value are being sold, highlighting the percentage increase in the following sectors: meat (14.02%), fruit and vegetables (12.38%), and vegetable oils (4.65%). Fish (-20.05%), wine and cava (-8.53%) and the Fine Food sector (-4.99%) recorded a loss in value this semester.

The surplus is maintained

Catalonia reached the agri-food trade surplus for the first time during the first half of 2019 and consolidated it overall for the whole year 2019. In this first half of 2020 the surplus is maintained with a coverage rate of 112.94%, that is to say, exports of agri-food products (€5,420.43 M) are slightly higher than imports (4,799.59 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.

Analysis of exports by sector

Meat remains the leading agri-food exporting sector with 40.48% of the total and a 21.66% increase in value and 6.71% in volume. It is led by pork, which represents 27.08% of all agri-food exports (66.89% of the meat sector) with a growth of 24.97% in value and 7.41% in volume.

The second place corresponds to Fine Food products, with 27.67% of the total exported in value and with a decrease of 1.41% in value despite the increase of 3.76% in volume. This sector is led by the following subcategories: snacks and appetizers, bakery and pastry products, cereal-based products, nuts, rice and legumes (23.73% of the total Fine Food sector), sweets, cocoa and their preparations, confectionery, honey, coffee, tea, infusions (21.76%), vegetable juices, waters, beers, drinks and liquids (16.20%), extracts, essences and concentrates, ingredients, soup preparations (15.02%), prepared dishes, broths, preserves, jams and jams (10.93%) and cheeses, dairy products and eggs (5.00%).

The export capacity of the fruit and vegetable sector places it in third position (7.56%). It registered an increase in value of 25.28% and 11.48% in volume.

Vegetable oils occupy the fourth position with 7%. This category grew by 11.85% in value and 6.63% in volume. Soybean oil leads the growth in value of the category with 45.01% and olive oil, which represents 44.60% of the total of the category, shows a growth of 2.47% in value despite decreasing in volume by 7.36%.

The wine and cava sector, the fifth sector, represents 4.07% of Catalan exports. Exports decreased by 13.55% in value and 5.49% in volume compared to the same period in 2019.

Cereals, milling and seeds account for 3.65%, and there is an increase of 4.56% in value despite the decrease in volume of 0.26%.

The fish and shellfish sector, in sixth position, represents 1.71% of agri-food exports and decreases by 25.88% in value and 7.30% in volume despite having the best value/volume ratio.

Market analysis. China, the second destination market, doubles its value

Asian markets are the first to recover from the global crisis. These are already in growing demand, especially in terms of food and drinks. Catalonia's agri-food purchases have increased by almost 54% in this first semester of 2020 compared to the previous year.

The markets that will lead this 2020 growth in food spending are, according to estimates made with data from Euromonitor International Ltd, China (+18.1%), Vietnam (+6.4%), the Philippines (+5.2%), Hong Kong (+2.2%), Taiwan (+1.4%). This, taking into account that food expenditure in 2020 is expected, as a direct consequence of Covid-19, Brexit and protectionist policies, to be practically the same as in 2019. The slowdown in consumption in the American and European markets must also be taken into account.

The main traditional destination markets for Catalonia 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 was already the second destination market in terms of value, surpassed only by France, and in this first half of 2020 it has increased by 169% compared to the same period last year.

On the other hand, Catalonia has increased its agri-food exports to Saudi Arabia, 43.60%, Libya (62.19%), Morocco (49.21%), Vietnam (66.46%), Qatar (65.93%).

Also noteworthy is the significant increase in the United Kingdom (5.28%), the sixth destination market for Catalonia's agri-food products.

The United States, the eighth destination market in 2019, lost two positions with a decrease in imports of agri-food products from Catalonia of 16.05%.

As for the markets with notable decreases in value, we find Mexico (-31.58%), South Korea (-25.99%) and Russia (-28.51%).