How Covid and New Consumption Habits are Affecting Irish Exports to Spain

Spain is Ireland´s 9th biggest export market in terms of value, the number one market for livestock exports, second largest for seafood and the seventh market for beef (representing 2.2% in terms of total exports with an export average price per kg of €5).  We estimate that over 30 Irish companies deal with Spain on a weekly basis. 

The main categories exported to Spain in 2019 in value were Dairy (28%), Seafood (26%) and Beef (22%):

 

In the Jan-April 2020 period dairy exports to Spain increased 3.3% mainly due to the 35% increase in casein export value and powders for the manufacturing industry.

Our seafood exports have decreased by 9% due to the closure of the foodservice sector since mid-March.  Both Pelagic and whitefish exports decreased considerably.

 

Beef exports have also been affected, suffering a decrease of nearly 11%. The loss of foodservice wholesalers, lack of product in Ireland to fulfil orders, price volatility and the trend to support local produce has also led to the loss of our main retail client in Spain.

 

 

Irish livestock exports to Spain up to the end of June, decreased by -19% (13,531hds) reaching 58,839hds (mostly calves).  Spain increased its own beef production from Jan-March by 4,400hds or 5,400tn, and is growing its exports (2,200tn) and decreasing its imports (5,400tn)

 

•The Spanish consumer is very much following the same trends as we are seeing elsewhere:

•Uncertainty and the search for security, safety and a focus on personal health

•Concern for the economy and their own spending: consumption rationalization

•Further growth on PL and cheaper and more basic products

•Aggressive product promotions to encourage sales

•Hard discount, competitive retail  and proximity stores growth

•Food to go ‘retailers’ and  "price killers” will continue to expand

•Acceleration of Digitization: virtual leisure, home delivery, online purchasing, working from home…

•Sustainability, traceability, authenticity and transparency

•Solidarity: search for relevant products committed to society

•Real 'advocates/influencers” will increase their relevance

•Mindfulness, fitness or yoga will be present in every consumer´s mind

•Conversations re personal and professional time balance will intensify

 

Source: LLYC Consultants - Consumer Engagement Department

 

Irish Exporters, with the help of Bord Bia, will need to make an extra effort to pamper their customers, highlight their USPs, service and promotional commitment given that they are going to be under huge pressure to buy as much local product as possible.

 

 

Sources

CSO Statistics

Spanish Department of Agriculture, Food and the Marine

Llyc Consultants

 Mercolleida and Asoprovac

 

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