Browse Data and Analysis

After hitting bottom during the previous season, Spain’s fodder production and exports are set to recover in MY 2024/25. A combination of higher area and yields are projected to bring fodder production to average levels.

Following three consecutive seasons of tight supply, favorable fall and winter conditions have been followed by abundant spring precipitation across Spain, with the notable exception of the eastern part of the country.

For MY 2023/24, lower area and poor yields are expected to push production levels well below the previous year’s levels.

Several Spain grain supply chain actors have released their first estimates for grain production for MY 2023/24 and concur with the poor crop prospects.

Spain is facing a second consecutive year of poor grains crops. While northernmost grain producing areas still hold production potential, yields in the country’s southeast are estimated to have declined significantly.

Since December 2022, rainfall across most of Iraq has been positive, expected to result in favorable yields and increased production for winter crops wheat and barley, with rice expected to rebound this summer for marketing year (MY) 2023/24.

Competition by other crops continues to force Spain’s fodder area down. In MY 2022/23 the dry spring is anticipated to have negatively affected yields in non-irrigated land. On the processor side, energy prices will keep forcing margins down.

On May 17, the Government of Iraq (GOI) announced higher purchase prices for locally-produced wheat in an effort to incentivize farmers to market their crop to the Ministry of Trade. On June 8, the GOI also passed a food security bill that allows the government to use public funds to meet urgent food needs, including issuing tenders to import wheat.

For MY2022/23, initially good crop prospects after the abundant rains in April were negated by above average temperatures registered in May and June. In-country grain demand remains relatively stable, driven by the recovery of the tourism sector, despite the somewhat lower livestock products exports and the grain prices hike.

In 2021, Chinese imports of alfalfa pellets hit record levels of 52,254 metric tons (MT) and $13.66 million by value, increases of 62 percent and 70 percent respectively. The market is dominated by Spanish-origin pellets.

Continued drought and water shortages is affecting economic activities in Iraq, especially grain production in 2022. The Iraqi Ministry of Agriculture cut agricultural cropping in irrigated areas to 50 percent less than the previous year due to shortages in surface water.

Favorable weather conditions have allowed a second consecutive sizeable winter grains crop in Spain.