Cecilia Ruiz, Manager, Bord Bia Madrid

Despite the economic environment that led to a decrease in Spanish beef consumption of 5.7%, preceded by a period of turmoil dating back to 2007, the Spanish cattle feedlot sector has shown strong signs of recovery in 2009.

Beef demand has remained ahead of supply due to a fall off of 15-20% in Spanish production following the substantial decrease in live cattle imports in 2008 and a drop of more than 10% in average carcase weights. The drop in feed costs combined with an increase of 4% in beef prices has helped boost returns for feedlot owners.

The major professional cattle feedlots have been controlling the balance between supply and demand and are becoming more vigilant with their production costs, thus ensuring value for their product.

Spanish stats for the first half of 2009 show an increase of 11% in cattle imports at almost 203,000 head. More than two thirds of the total consisted of calves compared to 44% for the same period in 2008. 

Irish live cattle exports to Spain are expected to reach almost 50,000 head in 2009, representing an 80% increase on 2008 levels with a swift leaning towards calves and weanlings over 250kg. France remains our main competitor on the weanling trade with Poland, Italy and Germany key calf suppliers to the market.

2009 can be considered a year of recovery for Irish livestock exports to Spain, setting a good base for 2010, which is expected to be a year of consolidation and growth in the Spanish feedlot sector.