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Spain EU’s second largest cotton growing member state after Greece

Staff Writer |
Spain has eight ginning plants in Andalucía, of which only seven are currently operational. Area planted to this crop in MY2017/18 is expected to show marginal growth compared to previous season’s levels.

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In MY2014/15 subsidies played a key role in planting decisions, in order to secure payments, farmers boosted cotton plantings and were especially careful to achieve good production levels.

In MY 2015/16 area planted to cotton returned to average levels, as securing CAP payments no longer represented an incentive. Area planted to cotton in MY2016/17 went down as a consequence of rains in the planting season.

Additionally, some losses in cotton plots have been reported as a consequence of torrential rains and flooding conditions.

However, above average temperatures throughout the crop cycle, low pest incidence and absence of rain during the harvest season have allowed for increased yields, which partially offset the lower area planted. Early estimates for MY2017/18 indicate that area planted to cotton may rebound slightly.

Main destinations for Spanish yarns and fabric continue to be Morocco (twenty-seven percent) and other EU Member States, such as Italy (ten percent), Portugal (ten percent), France (eight percent) and Germany (six percent).

These five markets represent over sixty percent of total cotton products exports.

The recovery of the internal demand has also resulted in increased imports of cotton products. The main origins include Pakistan (eighteen percent), China (seventeen percent), Portugal (fifteen percent), Italy (thirteen percent) and Turkey (ten percent).

Spain is a net exporter of cotton lint, with exports largely exceeding imports. Other EU Member States are their main destination, followed by Turkey, Morocco and Southeast Asia. Spain cotton lint imports originate mainly in Pakistan, Cameroon and Turkey.

In 2006, area planted to cotton in Spain suffered a significant decline in as a result of the implementation of the EU cotton reform, reaching a record low in MY2008/09.

In MY2009/10 the Regulation (EC) 637/2008 introduced some amendments to the cotton regime: national guaranteed area was reduced from 70,000 ha to 48,000 ha with a total budget of 67.2 million Euros.

Since MY2009/10 the cotton aid increased in value per hectare, but less acreage can benefit from this payment.

Since MY2014/15 the reference amount for the area payment has been revised down from 1,400 Euros/Ha to 1,267.53 Euros/Ha.

Since MY2015/16 to be granted with the Basic Agro-environmental support Aid (290.27 €/ha), the requirements are as follows:

- Integrated farming practices must be carried out and accredited.

- Land under eligible crops3 must be at least 0.5 Ha

- Farmers must attend to two courses of mandatory training on agro-environmental commitments within the four year period.

- Crop waste, such as stocks, should be shredded and uniformly distributed.

- Farmers must accredit compliance with agro-environmental commitments.

- Farmers must grow a legume crop at least once within the five years period of commitment as a second crop to cotton. The legume crop should be carried out between autumn and up to at least February 28 of the following year, once the legume crop has reached milky stage.

- Additionally, farmers may volunteer to grow and bury a crucifer crop at least once within the five years period of commitment as a second crop to cotton.

The crucifer crop should be carried out between autumn and up to at least February 28 of the following year.

Those farmers can receive a total amount of 433.44 €/ha as Agro-environmental Support. Adhesion to this additional commitment is fairly limited.

Cotton area is highly inelastic, as alternatives to cottons are limited due to the salty and warm conditions where this crop is grown.

Slight planted area variations can occur depending on price, water availability, and competition by other crops and subsidies available. Cotton is an input intensive crop.

The vast majority of it is grown under irrigation and, as GE cotton varieties are not allowed for planting in the EU, farmers rely exclusively on the use of pesticides to reduce pest incidence.


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