This article is part of our special report Agriculture: Towards more efficient resource allocation.
Spain is home to almost one million agricultural and livestock businesses, covering 30 million hectares of land and employing some 750,000 people. Their profit margins are largely determined by subsidies from the Common Agricultural Policy and national and regional governments, offset against production costs.
According to the Ministry of Agriculture, Food and Environment (MAPAMA), intermediate consumption costs came to €21.495 billion in 2015, an increase of 2.37% on the previous year.
These costs include phytosanitary products, fertilisers, energy, seeds, veterinary expenses and building maintenance. But the cost of labour, water, agricultural insurance, machinery and investments in modernisation also have to be taken into account. All this at the expense of a sector with 2015 revenues of €24.04 billion.
These figures reflect a sector whose work and productivity provide the raw materials for an agri-food business that represents 8.5% of Spanish GDP and provides 2.5 million jobs.
Disclaimer: This project has been funded with support from the European Commission. This publication [communication] reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.