SPAIN A region popular with tourists, Catalonia’s agriculture and food processing are booming
Building on a long tradition of trade

Every Spanish province has a claim to culinary virtuosity, but Catalonia probably has the edge. The most commercially powerful region, its agri-business is worth around $2.7 billion a year, accounting for 30 per cent of the overall value of the sector in Spain.
For centuries, Catalonia has been Spain’s industrial and commercial powerhouse. The population of more than six million – 16 per cent of Spain’s total inhabitants – provides a quarter of the country’s industrial employment and around 26 per cent of industrial gross domestic product.

The region attracts millions of holidaymakers each year, who head for the Costa Brava and Costa Dorada beaches and resorts. Barcelona, a port city of 1.5 million, is full of vitality. Gaudi’s extraordinary cathedral and the Picasso Museum are two of the major attractions, and the city boasts many good restaurants and lively nightlife.
But it is the region’s agricultural and food-processing sectors that are leading the field in Spain. At 31,392 sq km, Catalonia is only slightly larger than Belgium, yet it
is one of Europe’s top five industrialised regions and its vibrant economy has been growing faster than the EU average.
Most of Catalonia’s fruit crop – more than 11,000 tonnes of peaches, pears and nectarines – is exported within Europe, as are 65,000 tonnes of citrus fruits and 93,000 tonnes of olive oil every year.

‘Our oil is made from a tiny olive with low acidity’ Josep Grau i Seris

Regional agriculture counsellor Josep Grau i Seris says Catalonia produces the best olive oil in Spain. “Our olive oil is better than the one produced by Andalucia because it is made from a tiny olive with low acidity,” he says.
Catalonia was the first Spanish region to export wine – it is famous for Rioja – with a DOC quality mark, says Mr Grau. “Catalonia has 11 defined DOC areas, each with a specific micro-climate that leads to a variety of tastes.”

Processed food products bearing a DOC seal include Quadin cheese from the Pyrenees, half of which is sold to France. “We are lucky in Catalonia in that we have different types of climate – the Mediterranean on the coast and continental climate inland,” says Mr Grau. “We also have the most extensive irrigated lands in the south of Europe. We are planning to bring a further 150,000 hectares of land under irrigation.”
Mr Grau says hundreds of millions of dollars are invested in agri-business each year in Catalonia, and major international companies have chosen the region to set up operations. Yoghurt-maker Danone is investing more than $63 million in a new factory in Barcelona, while Nestlé is constructing a new $16 million dairy plant.

Catalonian companies are expanding operations around the world as well. “Our firms have been investing for many years in countries such as the US and Mexico, and South America,” says Mr Grau.
“Our first markets have traditionally been France and Italy. As we’ve expanded, we have gone into other markets such as the US, where it is easier to enter the market with quality wine. The same goes for the UK, which gives us tremendous added value. Although the UK market is very expensive, the purchasing power is high and there is economic potential.

“There are Catalan companies that are changing their operating systems and packaging in order to maintain their UK clients. This is good news for both parties because it means everything becomes standardised in the end,” says Mr Grau.
Catalonia is the most independent of the Spanish provinces, he continues. “We have had a long tradition of trading with foreign markets in the food industry, unlike other regions of Spain.
“Several things distinguish us: the seriousness of Catalonian businessmen and the new technology industries that have set up here. But although we have a Seat plant and the chemical industries around Taragona, agri-business is our leading sector and it exports more than any other.”

Over the next five years, Catalonia aims to bring about 12 per cent of its land under organic farming methods. Farms will be further integrated, adding to more than 40,000 hectares already farmed by modern methods. “Our objective over the next five years is to enter more European markets. Japan is a market where we are making inroads, as well as the US, and China looks an interesting market too,” he says.
Mr Grau believes the recognition of DOC-authenticated produce, sealed with a quality mark, will do much to ensure the region’s food is acceptable in foreign markets. “You cannot enter a market unless the quality you are offering is first class.”