Spain’s Shift to Market Agriculture and Modern Trade
Sector 1: Change and Permanence
From Traditional to Market Agriculture
The 19th century saw the adoption of new agricultural techniques like crop rotation and the introduction of new crops. This led to increased agricultural production at a time of high food prices, allowing landowners to obtain surplus and increase income through land leases. This process fueled capital concentration as industries developed and cities grew, increasing the demand for food while industrial products undermined small rural crafts. Consequently, agriculture entered the market economy, with farmers becoming interested in maximizing profits by growing what was most in demand. This specialization led to the abandonment of traditional subsistence farming in favor of market production, resulting in the transfer of rural populations and the capitalization of agriculture through land and labor.
Rural Exodus and Technological Adoption
Abundant and cheap labor from rural areas fueled industrial growth and the development of transport and communications. The adoption of new technologies in agriculture further capitalized the sector, supported by credits and subsidies. However, agricultural mechanization and low profitability led to a decrease in the rural agricultural population. While the 20th century saw some urban-to-rural migration, the trend of young people leaving rural areas for cities continued, particularly in remote regions. This process affected the structure of agricultural work, with small and medium landowners relying on family farms and some hired labor. Women’s agricultural work often went uncounted, and many landowners engaged in other economic activities.
Evolution of Agricultural Land and Farm Structure
According to 2007 INE data, Spain’s agro-food production occupied 50.5 million hectares, with 24.5 million hectares classified as Useful Agricultural Area (UAA). The remaining area comprised forests and other land uses. Farms below 5 hectares represented 51.8% of the total but occupied only 4.7% of the agricultural area, while farms over 100 hectares constituted 4.63% of farms but occupied 55.49% of the land. This disparity highlights the significant role of large estates (latifundia) in Spanish agriculture, particularly in regions like La Mancha, Catalonia, Extremadura, and Castile. These large farms, often modernized and employing skilled labor, contrast with smallholdings (-10 ha) prevalent in northern Spain and the islands, which face challenges in mechanization and commercialization.
Medium-sized farms have seen growth in Spain, encouraged by EU policies promoting intensive agriculture and land consolidation. These policies aim to improve the competitiveness and efficiency of family farms.
Agricultural Production and Trade
The Common Agricultural Policy (CAP), established in 1957, aimed to increase agricultural productivity and farmer incomes within the EU. Spain’s entry into the European Community led to changes in agricultural policy, with reduced aid for developing countries and a shift towards competitiveness and market adaptation. The 2003 CAP reform further restricted economic aid, impacting Spanish investments. The EU’s expansion in 2004 necessitated a reconsideration of agricultural policy, with Spain receiving 7.213 billion euros in assistance between 2007 and 2013. The National Rural Development Strategic Plan for this period focused on increasing agricultural and forestry productivity, developing the agro-food industry, and improving the environment.
Types of Agricultural Production
Agricultural production depends on cultivated area, soil quality, and cultivation intensity. Irrigated land has expanded due to subsidies. Dry crops include cereals, vines, and olives. Cereal cultivation is largely mechanized, while viticulture and olive production require more specialized labor. Vineyards are concentrated in Atlantic and Mediterranean areas, specializing in various wine types. Olive cultivation has expanded due to growing demand for olive oil. Other dry crops include legumes and oilseeds.
Irrigated agriculture focuses on horticulture, particularly citrus fruits, which are a significant export. Fruits and vegetables benefit from early ripening, competing effectively in the European market. Horticulture is labor-intensive, often employing women for harvesting, and requires significant inputs like fertilizers and pesticides.
Livestock Production
Spain is the second-largest livestock producer in the EU. The sector is highly technified and linked to the processing industry, contributing 40% of final agricultural production. Growth since 1960 has seen the integration of traditional systems with advanced technology. Cattle production focuses on meat and milk. Sheep farming is important for milk and meat, with wool production becoming residual. Pig farming is highly industrialized, while poultry production is also industrialized and highly efficient.
Marketing of Agricultural Products
Spain’s entry into the EEC significantly benefited agricultural trade, with 75% of agricultural exports going to the EU. The effectiveness of agricultural marketing depends on the development of the agri-food industry, which is increasingly dominated by multinational companies focused on high productivity. Wine production covers the domestic market and is exported to Europe and America.
Agrarian Landscapes in Spain
Agricultural landscapes are shaped by climate, which determines the types of crops grown, and relief, which influences the shape of parcels. Five main types of agricultural landscapes exist in Spain:
- Atlantic: Characterized by mountainous terrain, rainy climate, and meadows. Small farms focused on livestock (cattle) and some crops like corn and apples.
- Mediterranean: Coastal plains and rugged terrain with a dry climate. Dry farming of cereals, olives, and vines, with irrigated horticulture in some areas. Farm sizes vary.
- Interior: High plateaus with a continental climate. Dry farming of cereals, with irrigated agriculture along rivers. Large estates are predominant.
- Mountain: Varied altitudes and climates. Forestry and livestock (sheep and cattle) are important, with terraced agriculture in some areas. Small properties are common.
- Canary Islands: Steep relief and a subtropical climate. Banana and tomato production are important, along with other irrigated crops. Farm sizes vary.
Fishing
Spanish fishing grounds are located on continental shelves, areas with cold ocean currents rich in plankton, and areas where warm and cold currents meet. Overfishing has depleted some traditional grounds, leading Spanish fleets to seek fishing opportunities elsewhere, such as Newfoundland, the eastern Canary Islands, and waters off West Africa. The EU’s Common Fisheries Policy (CFP) aims to ensure sustainable fishing practices and supports aquaculture.
The Primary Sector in Catalonia
Agriculture
Intensive agriculture is concentrated in coastal plains and river valleys, benefiting from irrigation and favorable climate. Urbanization has reduced the agricultural workforce. The Maresme region is known for intensive horticulture, while other irrigated areas include the Baix Ebre and Ebro Delta. Inland areas focus on cereals, olives, and vines. Catalan agriculture is characterized by small family farms with high capitalization, facing challenges like overexploitation of aquifers.
Livestock
Livestock contributes 59% of Catalonia’s final agricultural production. Mountain meadows provide grazing areas. Intensive livestock farming, particularly for pigs and cattle, faces market saturation and EU regulations.
Fishing
Overfishing has depleted Catalan fishing grounds, leading to reliance on imports and aquaculture. The main fish auctions are located along the coast. Aquaculture has potential for growth in Catalonia.
Commercial Activity and Communications
World Trade
Increased production and consumption have led to a more active exchange of goods and services, creating various types of markets. The growth of the commercial sector has been driven by market liberalization and new technologies.
Domestic Trade
Spain’s internal trade is characterized by a dual structure of large and small companies. Distribution channels play a significant role, particularly in the consumer goods sector. The distribution of internal trade is influenced by regional economic development, consumer markets, purchasing power, and transportation infrastructure.
Spanish Foreign Trade and Balance of Payments
Spain is integrated into the EU trading bloc, with most of its trade occurring within the EU. Spain’s balance of payments reflects a negative trade balance, a positive balance of services (tourism), and negative balances of income and transfers.
Transport and Communications
Transport plays a crucial role in the movement of people and goods. Spain has invested in modernizing its transport infrastructure, including roads, railways, ports, and airports. European transport policy aims to promote sustainable and efficient transport systems.
Media
The media landscape is shaped by information technology (IT). The digital revolution has transformed mass communication, with factors like multiplication, implementation, and accessibility playing key roles. Advertising is a major service activity, influenced by the diversification of products and the reach of media.
Trade and Communications in Catalonia
Catalonia’s trade is primarily internal, with a growing trend in direct exports. Catalonia has a well-developed transport infrastructure, including roads, railways, ports, and airports. The region is also well-positioned in terms of information technology.