Spanish Economy: Agriculture, Fisheries, and Industry
1. Agriculture and Rural Development
1.1 Historical Evolution
In 1950, over half of the working population was concentrated in the primary sector. By 2008, this figure had dropped to slightly less than 5%. Spanish agricultural yields remain lower than the European average due to two main factors:
- Marketing difficulties, low and unstable prices, and the inability to maintain profitable prices.
- The need for production adjustments.
1.2 Problems and Constraints of Spanish Agriculture: An Adverse Environment
- Altitude: The high average elevation is a disadvantage. Only 18% of the land is between 0 and 200 meters above sea level, and only 12% has a slope of less than 5%.
- Climate: Despite abundant sunlight, most of Spain experiences heavy frosts that damage crops. Rainfall is very irregular, ranging from catastrophic downpours to very low levels.
- Rivers: Irregular flows, summer droughts, and poor flow pose challenges.
- Soils: Spain’s siliceous soils are either too acidic or too basic, and significant erosion occurs due to the steep slopes of rivers.
1.3 Evolution of Spanish Agriculture
Since the mid-18th century, irrigation has been a focus, with dam construction increasing. Irrigated land grew from 0.85 million hectares in 1850 to 1.3 million in 1936. Post-Civil War, the Franco regime initially resisted agricultural reform, but notable achievements included regulating and utilizing river flows. Dams and canals facilitated water distribution, and groundwater exploitation improved agricultural regions. However, drought remained a persistent issue. The Institute for Agrarian Reform and Development (IRYDA) was established to acquire irrigated farms, build villages, and encourage settlement. The Agricultural Credit Bank provided low-interest loans.
1.4 Current Problems
Spain has approximately 44.6 million hectares of land, with only 19.3 million cultivated. Large farms comprise slightly over half of the cultivated area. Capital investment for crop improvement is insufficient, and techniques are outdated. Key areas for improvement include:
- Expanding irrigation beyond 3 million hectares.
- Increasing mechanization, fertilizer use, and agricultural/livestock health treatments.
- Improving machinery performance.
1.5 Agricultural Production in Spain
- Cereals and Plants: Maize is important in the Atlantic region, but drought often hinders its cultivation. Winter crops are common in drier areas. Irrigated land is used for wheat and barley. Rice cultivation is limited to lowlands and is sensitive to temperature fluctuations.
- Potatoes and Vegetables: Potatoes thrive in acidic soils and are cultivated year-round. Increased productivity has led to a reduction in potato acreage. Irrigated vegetable crops are widespread.
- Fruits: Fruits are a major export and support the canning industry. Apples are produced in dry areas, while bananas require high temperatures and consistent conditions.
1.6 Agro-Industries in Spain
Canning and packaging industries are located near irrigated areas. Alcoholic beverage production occurs in growing regions. The meat industry is concentrated in Castilla y Leon and Galicia, sugar in Andalucia and Castilla y Leon, oil in Andalucia, biscuits in Castilla y Leon, and dairy in Galicia, Cantabria, Castilla y Leon, and Castilla-La Mancha.
2. Fisheries
Fish production contributes 1% to Spain’s GDP. Recent years have seen a shift towards higher-quality fishing. Overfishing and pollution affect many national fishing grounds. The deep-sea fleet utilizes the latest technologies. The northwest region is the most important fishing area, accounting for roughly half of the total catch. Major ports include Vigo, La Coruña, and Santa Eugenia de Ribeira. Growing demand has spurred aquaculture.
3. Activities and Industrial Areas
3.1 Procurement of Raw Materials
Metallic minerals are found in southern Spain. Iron is abundant. Lead, historically mined in Sierra Morena, is now primarily extracted from the Riotinto-Reocin area, along with copper and zinc. Uranium production occurs in La Haba and Don Benito. Non-metallic minerals like potash and clay are obtained from river basins.
3.2 Energy Sources
The northwest is a major hydroelectric producer. Nuclear energy is generated in plants like Garoña. Coal mines face challenges such as low reserves.
3.3 The Spanish Distribution Industry
Large state-owned companies are grouped under the State Industrial Holdings Company (SEPI). These companies often operate in dynamic sectors. Small and medium-sized enterprises (SMEs) make up the vast majority of businesses.
- Developed Industrial Regions: Areas with high concentrations of advanced technology industries, primarily Madrid and Catalonia. Catalonia has the highest regional production.
- Growing Industrial Areas: Due to saturation in traditional industrial areas, regions like the Ebro Valley have experienced industrial growth.
- Declining Industrial Areas: Areas with established industries facing low profitability.
- Weakly Industrialized Areas: Primarily inland provinces with isolated industrial pockets.
3.4 Spanish Industry Problems
Key challenges facing Spanish industry include:
- Spatial concentration.
- Limited capital availability.
- Uneven technological development.
- Weak R&D&I (Research, Development, and Innovation).
- Inadequate communication and transportation networks.
- Shortage and low quality of raw materials and energy sources.
- Industry fragmentation.
- Use of outdated technologies and poor facilities.
- Challenges stemming from the general economic framework.