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International Resources: Global Market Profile: Spain

As part of its commitment to providing its members with market analysis and insight, PMA has compiled the following information about Spain from Attaché Reports submitted by the U.S. Department of Agriculture’s Foreign Agricultural Service, as well as the Spanish government, CIA World Factbook, embassy sites, and business etiquette reference guides.

Table of Contents

Fresh Fruit, Vegetable, and Flower Market

Fruit and Vegetable Market

Agriculture constitutes 3.9% of Spain’s GDP and 5.3% of the country’s labor force. In 2004 Spain constituted for 11.1% of global fruit and vegetable exports.

Spain is one of the European Union’s biggest producers of fresh fruits and vegetables. Spain is the world’s largest producer of citrus fruit for fresh consumption. In 2003 Spain accounted for 25% of exported citrus fruit.

Apples, oranges, tangerines, other citrus, and berries are some of Spain’s main fruit exports. Some of the main vegetable commodities grown are onion, tomatoes, potatoes, lettuce, cucumbers, and peppers.

The European Union receives most of Spain’s fresh produce exports, with Germany and France as the largest recipients. Japan, the United States, and Canada also import large quantities of Spanish produce. Spain receives most of its competition from Israel, Morocco, Turkey, China, and South America.

COMPETITON FOR MAIN COMMODITIES

Fresh Flower Market

Spain is one of the world’s top exporters of flowers.  Exports for fresh cut flowers increased in 2007 mainly because of the raised demand for carnations, which grew by 28% in this period. Spain is the fifth largest supplier of flowers to Germany, the largest consumer of fresh flowers.

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Consumer Trends

Attention to catering to customer preferences is a key to success in the Spanish produce market. Demands for new products are high in Spain. New selling techniques are becoming very popular. Vending machines have spread throughout Spain in the last decade. Direct marketing by mail order, telephone, television, or electronic commerce is growing considerably. The organic market is entering Spain by force; many consumers are looking for Genetically Modified Organisms (GMO) free products.

Many Spaniards travel abroad, especially to the United States. Upon returning home from traveling, many consumers desire recreating foods they sampled on their journeys, so ethnic foods are becoming popular. Also the demand for foods requiring little preparation is growing in Spain.

Annual Exporter Guide for Spain (2005), from a U.S. perspective

Information regarding:
a) market structure/trends available page 12 of the guide
b) food retail sector available page 12 of the guide and via the retail sector reports: www.fas.usda.gov/gainfiles/200309/145986184.doc

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Entering the Spanish Market

The key for an exporter wishing to enter this market is to appoint an agent or distributor or to establish a subsidiary. Spain has 17 regions, many having different tastes and preferences. It is common to enlist the help of local representatives (often found in larger cities like Madrid and Barcelona). These representatives help not only with making business relationships, but also with understanding the consumption attitudes and preferences of the many regions. Along with local representatives, customs/brokerage agents are widely used to ensure products are cleared quickly through custom houses.

The different regions may also have different hours of operation for the work week. Normally business weeks run from Monday to Friday with many Spaniards working anywhere from 8:30 a.m. to 6:00 p.m. with a lunch of an hour and a half. July and August are months when many people in Spain take vacations. Also avoid Christmas and Easter times. Another note is that many businesspeople take 4 day weekends if a holiday falls on a Tuesday or Thursday. 

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Trade Agreements

Spain is a member of the European Union. European Union agricultural and trade policies are major determinants of agricultural production and trade. The Common Agricultural Policy states that there will be product preference in the internal market of the European Union over foreign imports through common customs tariffs.

The European Union has Regional Trade Agreements (RTAs) with these areas or countries:

EU Regional Trade Agreements under negotiation include:

  • EU and the Gulf Cooperation Council (GCC), comprising of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE),
  • The EU and Mercosur (Argentina, Brazil, Paraguay and Uruguay, and Venezuela which joined the group on 4 July 2006),
  • The EU and its Mediterranean Partners (Morocco, Algeria, Tunisia, Egypt, Israel, Jordan, the Palestinian Authority, Lebanon, Syria, Turkey)
  • The EU and the Association of South East Nations (ASEAN), comprising of Philippines, Indonesia, Malaysia, Singapore, Thailand, Brunei, Vietnam, Laos, Burma, and Cambodia,
  • The EU and Korea, and the EU and India.

If you are shipping any goods to Europe, you should obtain a written customs duty ruling, known as Binding Tariff Information (BTI). Getting a BTI is free and will prevent any conflict over customs or excise duty. A BTI is valid for six years.

HM Customs and Excise
Tariff Classification
2nd Floor South West
Alexander House
21 Victoria Avenue
Southend-on-Sea
Essex SS99 1AA
Tel: +44 (0)1702 366077

Generally, there is no Value Added Tax (VAT) on fresh produce.

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Food Standards and Regulations

The European Union establishes the rules and regulations governing production, trade, and labeling in Spain. If an exporter is already exporting to a country in the European Union, the exporter is more than likely already meeting most of the requirements for exporting to Spain.

Consult Food and Agricultural Import Regulations & Standard Report for Iberian Peninsula (SP5020)

The Ministry of Agriculture has an office at all custom houses to conduct sanitary and phytosanitary inspections of all foodstuffs.  

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Business Protocol

First impressions are important. Some differences are simply due to the language barrier; others are due to differences in deeply held traditions and practices. If you maintain a polite, patient and professional manner, the likelihood of committing a serious faux pas will be greatly diminished. To help bridge the gaps, we have compiled a list of business protocol:

  • Appointments are mandatory and should be made in advance, preferably by telephone or fax. Reconfirm in writing or by telephone the week before.
  • You should arrive on time for meetings; however, social events rarely begin on time. 
  • When introduced, expect to shake hands.Many men use a two-handed shake where the left hand is placed on the right forearm of the other person.
  • Present your business card to the receptionist upon arriving. Have one side of your card translated into Spanish. Hand your card so the Spanish side faces the recipient.
  • Business dress is stylish yet conservative. Dress as you would in the rest of Europe. Elegant accessories are important for both men and women.
  •  The first meeting is generally formal and is used to get to know each other. Do not be surprised if no business is actually conducted during the first meeting.
  • Agendas are often used but it is not always necessary that they be followed too strictly.
  • Make sure all your printed material is available in both English and Spanish.
  • Several people may speak at once. You may be interrupted while you are speaking.  This is not an insult; it merely means the person is interested in what you are saying.
  • Spaniards place great importance on the character of the person with whom they do business. Hierarchy and rank are important. You should deal with people of similar rank to your own.
  • Decisions are not reached at meeting and decision-making is held at the top of the company. Meetings are for discussion and to exchange ideas. Most Spaniards do not give their opinion at meetings. Therefore, it is important to watch their non-verbal communication.
  • Spaniards do not like to lose face, so they will not necessarily say that they do not understand something, particularly if you are not speaking Spanish. You must be adept at discerning body language.
  • Spaniards are very thorough. They will review every detail to make certain it is understood.
  • First you must reach an oral understanding. A formal contract will be drawn up at a later date. Spaniards expect both sides to strictly adhere to the terms of a contract.
  • If invited to a person’s house, remain standing until invited to sit down. You may be shown to a particular seat.
  • Do not begin eating until the hostess starts.
  • Always keep your hands visible when eating. Keep your wrists resting on the edge of the table and use utensils to eat most food. Fruit is eaten with a knife and fork.
  • The host gives the first toast. An honored guest should return the toast later in the meal. It is acceptable for a woman to make a toast.
  • If you have not finished eating, cross your knife and fork on your plate with the fork over the knife. If you are finished indicate it by laying your knife and fork parallel on your plate, tines facing up, with the handles facing to the right.
  • Do not get up until the guest of honor does.
  • If a Spanish counterpart visits you, take them to an excellent restaurant, because many Spaniards are knowledgeable about gourmet food and wine.
  • Face-to-face contact is preferred to written or telephone communication and the way you present yourself is of critical importance when dealing with Spanish businesspersons.
  • Spanish culture (like many other cultures) is concerned with looking good in the eyes of others and trying to avoid looking foolish at all times. It is best to display modesty when describing your achievements and accomplishments. Communication is formal and follows rules of protocol. Always avoid confrontation if at all possible. Spaniards do not like to publicly admit that they are incorrect.
  • Gift giving is only customary at the conclusion of successful business negotiations. Gifts should be nicely wrapped and of fine quality (brand names). Give gifts with company logos only if they are pens or nice desk accessories. Do not give something overly extravagant, because it will be perceived as a bribe. However, if invited to a Spaniard’s home, you can bring chocolates, pastries, or cakes; wine, liqueur, or brandy; or flowers to the hostess.It is bad luck to give thirteen flowers. If you your hosts have children, they may be included in the evening, and a small gift for them is always appreciated. All gifts are opened upon receiving.
  • The American “O.K.” gesture is considered rude.
  • To beckon someone, do not use your finger, but rather your whole hand with your palm facing the ground.

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Export Business Reminders

  • Keep in mind the date is written Day/Month/Year.
  • Use metric terms.
  • Be patient regarding requests for documentation, ingredients lists, production process, and quality assurance and respond to such requests with diligence and in a timely fashion.
  • Use letters of credit to reduce risk.
  • Hedge export values with your  bank if you are concerned about exchange rate risk.
  • Set up wire transfers for payments.

Remember all labeling must be in Spanish. When products go through Spanish customs, terminology must be exact for the tariff classification of which the product is being imported. Also in order to clear customs, all products must possess:

    • Bill of Lading
    • Certificate of Origin
    • Original Commercial Invoice with Copy
    • Import Declaration (issued by the State Secretariat of Commerce)
    • Health Certificate

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Related Links and Government Resources

Free guide to Spain - travel, people, money, living, driving, articles about Spain.

Government Resources

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