Spain Annual Seafood Report
AGR Number: SP5039

From: American Embassy, Madrid, Spain
To: USDA/FAS Washington D.C.
Country: SP
Year: 1995
Report Code: 54 Post Report Sequence Number: 002
Report Title: Seafood
Report Type: A - Annual Report
Report Subject: Seafood & Products
Approved By: Franklin D. Lee
Drafted By: Diego Pazos
Security Classification: UNCLASSIFIED, NOT OFFICIAL USDA DATA
Date Due (MM/DD/YY): 09/15/95

Report Code: SP9554A
AGR Number: SP5039
Page: 1
Seafood

General Summary

Spain is the largest per capita seafood and products consumer within the EU and is a net importer. According to the latest Spanish statistics published in April 1995, total 1993 catches amounted to 1,162,963 tons, up marginally from the previous year. For 1994 and 1995 a decrease in total catch is estimated due to a reduction in Spain's Total Allowable Catches (TAC), imposed by the EU. Spain's full integration into the EU Common Fisheries Policy (CFP) will now become effective January 1, 1996 due to Spanish demands to accelerate this process during accession negotiations with Austria and Finland. This fact could result in larger Spanish catches in EU waters in 1996.

On the other hand, in February 1995, the North-Atlantic Fisheries Organization (NAFO), decided to reduce the global Greenland halibut quota from 60,000 tons to 27,000 tons for 1995. On April 16, 1995 an Agreement was established under which Greenland halibut catches allocated to the EU were subsequently fixed at 11,000 tons a year. As a result of this Agreement, the Spanish proportion of the entire EU quota for Greenland halibut was dramatically reduced from about 40,000 tons in 1994 to about 10,000 tons. This drop in catches will result in loss of about 20 billion pesetas for the Spanish fish sector.

The EU-Morocco Fishing Agreement expired on April 1, 1995, and negotiations for a new agreement are currently blocked. Any new agreement will likely result in reduced Spanish catches in Moroccan waters.

Spanish fish consumption in 1995 is expected to decline, mainly due to lower catches and higher prices. Consumption could decline to below 47 kilograms/per capita. Fish consumption over the next few years is expected to remain stable or lower due to higher expected prices and lower catches.

Spain's seafood imports are expected to be higher in 1995, mainly due to a drop in Spanish production. Exports also could decline because of the peseta's recent strength against the U.S. dollar.

There are good market opportunities in Spain for U.S. seafood products, mainly for squid, fresh fish and live lobster. U.S. seafood exports to Spain rose to 29,177 tons in 1994, more than 17,600 tons higher than in 1993. Spanish importers are actively looking for new sources of supply in order to compensate for lower expected catches outside of EU waters.

Current exchange rate: 118 pesetas/$1.00. This is 11 lower than in February 1995.

Report Code: SP9554A
AGR Number: SP5039
Page: 2
Seafood

Total Edible Fishery Prods.

Production

Note: Complete statistical data for 1994 is not yet available. All data used in this report are the most recent data available for Spain, published in April 1995.

General

The total number of fish caught by Spanish vessels and landed in Spanish ports in 1993 amounted to 1,162,963 tons. This figure compares with 1,157,863 tons caught in 1992. Fresh fish production rose to 716,230 in 1993 versus 668,462 in 1992.

In 1994, production of fish from farming significantly increased to 157,491 tons when compared to 1993 production of 105,107 tons, according to Ministry of Agriculture official figures. However, data provided by the National Advisory Board of Marine Aquaculture (JACUMAR) show 1993 Spanish fish farming production at 230,800 tons. Although data are not yet available, a similar discrepancy exists for 1994, according to JACUMAR Officials.

For calendar year 1995, Spain's catches are expected to decline due to a reduction in total catches in international waters, mainly in Morocco.

Spanish canned fish production in 1994 amounted to 220,938 tons, a slight decrease from production in 1993. In value, production rose by 4 percent. A similar production trend is expected for 1995. The most common species processed by the Spanish canning industry are: tuna, mussels, sardines, white tuna, cefalopod, mackerel and anchovy.

Report Code: SP9554A
AGR Number: SP5039
Page: 3
Seafood

Total Edible Fishery Prods.

Production
Cured fish production in Spain has traditionally centered on salted cod. However, smoked fish production is gaining in importance in the fish processing industry. The declining prominence of cod is due to a reduction in cod catches allocated by the EU to Spain. In 1994, Spanish cod catches represented around one-third of all cod used by the industry. According to trade sources, salted cod produced in Spain in 1994 was around 30,500 tons, and no significant changes in production are expected to take place in the near future.

In 1994, 9,200 tons of fresh fish were processed into smoked fish versus 9,000 tons processed in 1993. A slight increase in smoked fish production is also expected for 1995. Species most commonly used by the smoked fish industry are salmon, trout and anchovy. The primary source of raw material for the processing industry is imported fresh and frozen fish. This phenomenon is a direct result of the application of the restrictive Spanish TAC by the EU.

Wild Catch Production Factors
The Spanish fishing fleet is the largest within the European Union. According to the latest figures available, the Spanish fishing fleet totalled 18,890 vessels with a gross tonnage of about 625,000 tons. The Spanish fleet can be divided into three main groups in accordance with the area in which these vessels fish. There are currently 16,750 vessels in Spanish waters, 1,100 vessels in EU waters and 1,140 vessels in international or third country waters. Vessels that fish in EU or international waters account for two-thirds of total Spanish catches. Half of the vessels fishing in third country waters are located in Moroccan territorial waters. About 81,000 sailors are working as fishermen. In addition, 404,000 people are working in the fish sector. According to the Spanish Ministry of Agriculture, this sector amounted to about 1 percent of the Spanish GDP.

Spain is divided into eight fishing areas: Cantabria, North-East, South-Atlantic, South-Mediterranean Levante, Tramontana, the Balearic Islands and the Canary Islands. The North-West region is the most important area, accounting for 53 percent of all Spanish vessels in operation, followed by Andalucia with 14 percent.

Report Code: SP9554A
AGR Number: SP5039
Page: 4
Seafood

Total Edible Fishery Prods.

Production
Aquaculture Harvest
Spanish aquaculture has grown considerably during the last decade. The main species farmed are mussel and trout. After the Spanish accession to the EU, this sector diversified its production and experienced an increase in the number of fish farmed. Aquaculture production in 1992 and 1993 (latest data available) were as follows:

Spain is the world's second largest producer of mussels after China. Production of this mollusk in Spain began in 1940 in northwestern Spain, and thousands of floating mollusk beds are found in many Spanish bays. Fifty percent of the mussel crop is consumed fresh after being depurated, 40 percent is canned, and the remaining 10 percent is processed for freezing.

Mussel farming is well established in Spain. The main threat to the continued health of this activity is increasing water pollution, which may begin to have an adverse impact on future production.

Report Code: SP9554A
AGR Number: SP5039
Page: 5
Seafood

Total Edible Fishery Prods.

Production
The first trout farms were established in Spain in 1960. The rainbow trout was chosen as the preferred species for production because of its quick growth rate.

Trout farms are mainly located in the north and north-western areas of Spain. Trouts are marketed 10-15 months after birth, when they have attained an average weight of 200-250 grams.

Since the Spanish accession into the EU, the aquaculture sector has received substantial amounts of EU and Spanish aid. These funds have been directed towards establishing an aquaculture base in order to reduce Spain's growing dependence upon imported seafood products.

Production Mix
The main fresh species landed in Spain are: sardines (251,000 tons), hake and whiting (70,414 tons), codfish (41,055 tons), anchovy (39,600 tons), megrim (11,800 tons), and sole (11,100 tons). Frozen species landed include: hake and whiting (34,000 tons), tuna (220,000 tons) and squid (56,000 tons). Mussels are the most popular seafood item in Spain, due primarily to their low prices.

Tunafish accounts for about half of all fish products used by the Spanish canning industry, followed by sardines, squid, mussels and mackerel.

Report Code: SP9554A
AGR Number: SP5039
Page: 6
Seafood

Total Edible Fishery Prods.

Production
Production Technology
The Spanish fishing fleet has always been considered one of the most important in the world and at present it is the largest within the EU. Nevertheless, after Spanish Accession to the EU, the fleet was reduced in number. Many vessels have been transferred to other EU countries where joint ventures have been created; other vessels have been dismantled. The aim of the Spanish government is to modernize its fleet with higher catch capacity and improved working conditions.

At present, 40 percent of the Spanish fishing fleet is over 20 years of age, and about 11 percent is over 30 years. The modernization of the Spanish fleet resulted in the construction of 570 new vessels during the period 1986-91. The construction project benefitted from both Spanish and EU subsidies. During the same period, 1,390 projects were initiated to modernize old vessels. This trend will likely continue in the future.

Production Quality
Fresh fish quality in Spain is considered to be good. Vessels arewell equipped to handle the fish adequately. Fish are transported to wholesale markets in refrigerated trucks. Retail markets and smaller shops are well equipped to maintain the fish in good condition until it is purchased by the consumer. 

Cross Commodity Developments
Seafood products clearly compete with meat products as the main source of proteins in the Spanish diet, although fish is considered a more healthful source of proteins. During the last few years, both meat and fish consumption have increased steadily.

Consumption
Utilization Patterns
According to recent data on fish landings and trade, in 1994 fish consumption in Spain averaged around 47 kilos/per capita, which placed Spaniards at the top of the list of European fish consumers and in second place in the world ranking, behind Japan. Total seafood consumption in Spain in 1994 was 1.52 million metric tons.

Report Code: SP9554A
AGR Number: SP5039
Page: 7
Seafood

Total Edible Fishery Prods.

Consumption
Fresh fish accounts for 46 percent of all seafood products consumed in Spain, followed by mollusks and crustaceans at 30 percent, frozen fish at 15 percent, and canned seafood products at 8 percent of total consumption.

Due to the scarcity of available and reliable data from official sources, some data used in this report are provided by Mercamadrid, a wholesale market from which a large share of the fish in the province of Madrid and surrounding areas is distributed. In 1994 Mercamadrid marketed 172,599 tons of seafood products. According to Mercamadrid the following table reflects the main seafood products consumed:

Consumer preferences depend in most instances on price. However, consumers prefer fresh over frozen fish.

In 1994 fresh fish prices in Mercamadrid rose by about 2 percent.

Substitution Patterns
According to Ministry of Agriculture data, meat and meat products consumption increased 1.4 percent in 1994 (75 kilos per capita), while seafood products increased by 2.3 percent. Pork and poultry meat are the most commonly consumed mea  products in Spain at 54% and 23.4% of total meat consumption, respectively. For 1995, both meat and fish consumption is expected to remain stable.

Report Code: SP9554A
AGR Number: SP5039
Page: 8
Seafood

Total Edible Fishery Prods.

Consumption
Cumulative Consumption Issues 
Fresh fish is mainly consumed in central Spain, followed by northern areas as well as Andalucia. Frozen fish is evenly consumed throughout Spain, although in the metropolitan areas consumption is lower.

Consumption trends by age group show that people over the age of 60 consume the largest amount of fresh fish, while people below age 29 consume the lowest amount. The same consumption pattern applies to other seafood products.

Trade
Trade Trends
Spain is a major consumer of seafood products and is also a net importer. According to final statistics from the Spanish Customs Office, in 1994 Spain imported 907,872 tons of fish and fisheries roducts and exported 413,818 tons of these products. For 1995, preliminary figures indicate increases in both imports and exports.Imports will increase because of lower domestic catches.

Report Code: SP9554A
AGR Number: SP5039
Page: 9
Seafood

Total Edible Fishery Prods.

Trade

In 1994, Spanish exports of fish and fisheries products increased, mainly due to the devaluation of Spanish peseta. Another devaluation which occurred at the beginning of 1995 could encourage additional Spanish exports in 1995.

Report Code: SP9554A
AGR Number: SP5039
Page: 10
Seafood

Total Edible Fishery Prods.

Trade
Fish imports for calendar year 1994 rose due to the reduction in allowable catches imposed on Spain by the EU, in addition to the need to fulfill expected increases in fish consumption during the next few years.

Exports of fish also increased because of the devaluation of Spanish peseta in 1994.

The main fresh fish species imported by Spain are sardines, hake, salmon, megrim and anchovies. Among frozen fish, the main imported species are hake, both whole and fillets, followed by tuna for the canning industry, sole, mackerel (also for the canning industry) and sardines.

The bulk of the fish imported by Spain comes from other EU countries, as well as Morocco, Argentina, Namibia, the U.S. and Chile.

Spanish seafood products are exported mainly to other EU countries, Japan and Thailand.

Factors Affecting U.S. Trade
The devaluation of the Spanish peseta against the dollar has been a factor that has hampered U.S. seafood exports to Spain during the last few years. However, despite the weakness of the Spanish peseta, U.S. exports to the Spanish market rose to 29,177 tons in 1994, representing a 17,690 ton increase over 1993. The main factor behind this dramatic figure was a major increase in U.S. squid exports. U.S. fresh and chilled fish exports to Spain also rose dramatically to 4,334 tons, up 83 percent from 1993. On the other hand, U.S. exports of frozen fish to Spain declined from 2,835 tons in 1993 to 2,671 tons in 1994.

The reduction in Spanish catches in both Morrocan and international waters will increase the opportunities for exports of U.S. seafood products to the Spanish market during the next few years.

Currently there is strong demand from the Spanish canning industry for frozen tuna fish and mackerel. Demand may increase due to the slow but steady development of the canning industry and higher Spanish exports of canned fish products.

Fresh salmon is highly appreciated in Spain; at present most imports come from Denmark and Norway. However, U.S. Salmon may have opportunities in Spain as consumers here appreciate the high quality product that U.S. exporters can provide.

Consumption of pre-cooked fish products has dramatically increased, reflecting the entry of more women into the workforce with less time to prepare the traditional time consuming dishes and no time to shop for fresh fish on a daily basis. Children are also more likely to consume pre-cooked (primarily fried) fish products. This market is where U.S. value-added frozen or prepared fish products face the highest potential.

Report Code: SP9554A
AGR Number: SP5039
Page: 11
Seafood

Total Edible Fishery Prods.

Trade

Stocks
Currently there are no reliable data on fish stocks in Spain. However, the stocks of seafood products that are held are generally in the form of frozen and canned products. According to trade sources, these stocks have remained stable on a year-to-year basis.

Report Code: SP9554A
AGR Number: SP5039
Page: 12
Seafood

Total Edible Fishery Prods.

Policy
General
The EU Common Fisheries Policy (CFP) was agreed to in October 1983, and is governed by EU Regulation 2908/83. In 1986, when Spain joined the EU, a new regulation was approved to harmonize Spanish fishing policy with the CFP. Spain's ful  integration into the Common Fisheries Policy (CFP) was advanced by seven years and will be completed as of in January 1, 1996 due to Spanish demands during the EU's accession negotiations with Austria and Finland. Spain's more rapid integration into the CFP could lead to larger Spanish catches in EU waters, since Spain will now be allowed to fish in EU waters without discrimination.

CFP instruments fall into 4 areas. These include 1) Marketing policy, which establishes rules for comercialization and marketing of seafood. 2) Structural policy, which is targeted towards making the EU fishing fleet more economically rational. 3) Conservation measures and surveillance of resources, which involve the management of the EU's reserved territorial fishing area of 200 miles. 4) The administration of quotas, including the establishment of quotas called the Total Allowable Catches (TAC), which are set annually for each stock of species with the assistance of the International Council for the Exploitation of Seas and the North Atlantic Fisheries Organization (NAFO). The share of the TACs available to the EU are divided into national quotas, which are then allocated to each member state.

During 1994, an incident involving the use of driftnets took place in the Bay of Biscay's tuna fisheries which involved Spanish, French, Irish and British fishermen. The EU allows use of driftnets with amaximum length of 2.5 Km., while French, Irish and British fishermen were reportedly using driftnets of up to 15 Km in 1994. Driftnets of that length reportedly represent a danger for the marine ecosystem. Marine life not intended to be caught by fishermen are trapped in those nets, including mammals and other fish of no commercial interest. In addition, flesh of tuna captured using driftnets is reportedly of lower quality than tuna caught using traditional methods. The issue of driftnet length is now being debated before the EU Commission. The Spanish Minister of Agriculture wants to prohibit the use of driftnets entirely and this could take place in 1997.

Production Policy
The EU establishes fish prices annually. A EU withdrawal price is derived from a guide price established by the EU Council at the start of the fishing season for the main species. Producer organizations fix an autonomous withdrawal price, below which they will not sell the fish supplied by their members.

Report Code: SP9554A
AGR Number: SP5039
Page: 13
Seafood

Total Edible Fishery Prods.

Policy
Export Subsidies
The EU export refund system for fish was abolished in 1992.
Currently, there are no such subsidies.

Non Tariff Barriers
Seafood processing plants from outside the EU who want to export to EU member states must be EU approved. EU Regulation 675/90 provides for border checks by customs authorities. Ports of entry must be approved to handle fish and fish products.

Quality, Safety and Health
EU Directive 91/493, implemented in Spain by Royal Decree 1437/92 spells out the health conditions for the production and marketing of fishery products. EU Directive 93/185 establishes the form that must accompany seafood products entering the EU.

During Spring 1994, several containers of U.S. squid were stopped at the Spanish border by Spanish authorities. Two containers were rejected because the copper content was higher than the maximum allowable limit established by Spanish regulation (20 parts per million in edible meat). After involved discussions between FAS and Spanish Health authorities the problem was resolved. Since June, 1994 no other containers have been rejected. These successful negotiations and intervention by FAS/Madrid opened the way for a record $16.2 million worth of Spanish Squid imports from the U.S. in 1994.

Prices
Fish prices did not experience large increases during 1995.
The following seafood prices were obtained in a local fishshop, in pesetas/Kg.:

Report Code: SP9554A
AGR Number: SP5039
Page: 14
Seafood

Total Edible Fishery Prods.

Marketing
Market Development Opportunities
Although Spaniards have very conservative food tastes, changes in lifestyle have brought about changes in food uses. As described in the consumption section, pre-cooked food products are gaining in popularity within the Spanish market. As previously stated, value-added seafood products represent an excellent export market potential for U.S. exporters.

Spain is considered a relatively new market for fresh salmon, a product with a good reputation and high demand that has not yet peaked. Most Salmon is currently imported from Denmark and Norway. The smoked salmon industry is still in the development stage, although this market is expected to mature in about 2 years. This industry could be a good customer of U.S. high quality salmon (King salmon).

Squid, both fresh and frozen, is a very popular product in Spain, ranking first among the frozen seafood products consumed in Spain. In 1994 the U.S. exported a record 13,684 tons of squid to Spain, 10,619 tons more than in 1993. Other main squid supplier countries were India, Morocco and other EU countries.

The seafood canning industry imports frozen tuna and mackerel for processing, and this sector is experiencing rapid growth. Over the past few years, canners have been producing an increasing number of different ready-to-use food products in which fish is the main component. Items such as tuna with vegetables, and cod in tomato sauce also represent potential markets for U.S. consumer orientedseafood products.

Shrimp and lobster (mainly U.S. lobster) have a high demand in Spain, mainly during the Christmas season at a time when these products are at their highest price levels.

Surimi is another type of seafood product that is being commercialized in Spain. It has good consumer appeal and its presence in supermarkets is increasing, especially in the frozen seafood section.

Report Code: SP9554A
AGR Number: SP5039
Page: 15
Seafood

Total Edible Fishery Prods.

Marketing
Marketing Channels
Seafood, as well as other fresh food products are marketed and distributed in Spain mainly through the MERCA distribution network. MERCA is a state-owned company that is part of the Spanish Ministry of Agriculture. There are 22 MERCA's in Spain, all located in the major cities. In cities with no MERCA, food products are distributed through the central city market.

When fish is off-loaded in the harbors, it is sold to authorized wholesalers at auction. The fish is then distributed to the various MERCA's and the central markets. Retail sellers ranging from the small fish shop owners to the large supermarkets and hypermarkets buy fish at the MERCA's and the central markets. The traditional fish shop owner competes with the large stores in big cities. These smaller retailers usually carry only fresh fish. Frozen fish is mainly marketed through frozen food shops, in bulk, or in supermarkets and hypermarkets where it is sold, packed, and branded.

Competitor Activities
The Spanish Ministry of Agriculture continuously carries out generic campaigns to promote different types of fish. Their main campaign focuses on advising consumers to avoid consumption of immature fish. Another campaign is designed to promote consumption of blue fish, mainly sardina and mackerel.

At the end of 1993, the fish canners associa tion (ANFACO) organized a campaign to promote canned fish consumption. The Foreign Trade Institute (ICEX), in cooperation with ANFACO, funded and implemented a campaign to promote canned products abroad.

Report Code: SP9554A
AGR Number: SP5039
Page: 16
Seafood

Squid/Cuttlefish

Production
General
According to the latest available statistics, Spanish catches of cuttlefish, squid and loligo in 1993 declined by 25 in comparison with 1992. Most of these catches were in Moroccan waters. The future of the special fishing arrangement with Morrocco that makes this type of fishing possible for Spain is uncertain. Morocco wants to negotiate another agreement with EU authorities to reduce the number of Spanish vessels authorized to fish in their waters. This measure will negatively affect Spanish vessels and a reduction in catches in Morroccan waters of about 30 percent is expected. Most of the Spanish vessels catching cephalopods in Morroccan waters are based in the ports of Las Palmas, in the Canary Islands, and Vigo, in the northwest of Spain.

Report Code: SP9554A
AGR Number: SP5039
Page: 17
Seafood

Squid/Cuttlefish

Production
Production Factors
Most of the squid consumed in Spain is frozen. Once the squid is caught, it is immediately processed and frozen on the vessel. Use of this method reportedly results in a higher quality product.

In 1993, squid and cuttlefish catches were approximately 74,000 tons, a decrease of 25 percent below production in 1992. This trend is expected to continue in 1994 and 1995. Lower catches will likely contribute to higher imports.

Production Mix
Among all fresh cephalopods landed in Spain, squid represents only 14 percent of the total. Cuttlefish represents 5 percent, flying squid 18.5 percent, and octopus, 62 percent. Of total frozen cephalopod production, squid represents 77 percent, flying squid 9 percent, and octopus, 14 percent.

Production Technology
As discussed in this section under Total Edible Fishery Products, the Spanish fleet is the biggest within the EU, and is well-equipped and modern. The Spanish government, as well as the EU through the FEOGA, provide funds for the construction of new vessels or remodeling of old ones.

Production Quality
Spain is a mature seafood market and good quality products are always in high demand. For that reason, good quality seafood must be produced to avoid being rejected by the Spanish consumer.

Cross Commodity Developments
Squid, mainly processed, clearly competes with other processed seafood products, such as breaded hake fillets. Nevertheless, during recent years consumption of frozen processed squid has increased, reflecting an increasing number of women in the workforce and an increasing trend in consumption of ready-to-eat products. This trend is expected to continue.

Report Code: SP9554A
AGR Number: SP5039
Page: 18
Seafood

Squid/Cuttlefish

Consumption
General
Cephalopods (squid, cuttlefish and octopus) have long been an important component of the Spanish diet. Squid and cuttlefish consumption in Spain in 1994 was estimated at about 128,828 tons, and modest increases are expected for 1995.

As indicated previously, most of the squid consumed in Spain is caught and frozen on the vessel. Squid is also consumed fresh, although consumption of fresh product is decreasing while frozen processed squid consumption is increasing. The factor explaining this shift is that frozen seafood can reach every corner of Spain in very good condition. In Spain, large household freezers are becoming the rule, especially as more women enter the workforce. In addition, fried battered squid is increasing in popularity.

Utilization Patterns
Squid is usually consumed battered and fried. Andalucia is the area where per capita consumption is highest in Spain, owing to the overwhelming popularity of seafood in that area. One of the most popular Spanish sandwiches is made with fried battered squid.

Squid is also canned. Around 8,000 tons of squid were used in the canning industry in 1993. However, the bulk of processing is in the form of pre-cooked squid in battered pre-fried rings. This type of product is marketed by the leading frozen food procesers such as Pescanova, Freiremar (a company which has its own fleet) and Frigorificos Delfin, among others.

Trade
Trade Trends
Spain was a net exporter of squid until 1986 when it joined the EU.  Since then Spain has become a net importer of this product. In 1994, imports of squid and cuttlefish amounted to 96,205 tons. Most of the squid and cuttlefish imported is frozen (85 percent of the total imports). In 1994 Spain imported a record 13,927 tons of squid from the U.S., up dramatically from 1993 imports of 3,065 tons. For 1995 a further increase in imports is expected, especially since the new fishing agreement with Morocco has not yet been signed, and the next agreement could reduce Spain's allowable catches by 30 percent. Since May of this year, the Spanish fleet has not operated in Morrocan waters because of ongoing negotiations over this pivotal agreement.

Report Code: SP9554A
AGR Number: SP5039
Page: 19
Seafood

Squid/Cuttlefish

Trade
Spanish squid exports in 1994 totaled 41,378 tons, up 27 percent from 1993. The increase in exports results directly from the devaluation of the Spanish peseta. The main destinations for Spanish squid exports are other EU countries. Exports are virtually all fresh.

Stocks
On average stocks of squid and cuttlefish are about 3,000 tons.  Stocks generally remain stable from year to year.

Report Code: SP9554A
AGR Number: SP5039
Page: 20
Seafood

Squid/Cuttlefish

Policy
Production Policy
The EU Common Fisheries Policy (CFP) is discussed under Total Edible Fisheries Products.

The current EU-Morocco Fish Agreement ended in April 1995, and negotiations to reach a new agreement are still underway. The negotiations began in May but have not yet been concluded. During this negotiation period, the Spanish fleet which normally works in Morroccan waters has remained moored in Spanish ports. It has become increasingly clear that any new agreement will negatively affect Spanish catches. Morocco is expected to demand a large reduction in the number of authorized vessels fishing in its waters and in the amount of allowable catches. Most of the cephalopods caught by Spain originate in Moroccan waters.

Tariff Policy 
Below are import duties faced by Countries outside the EU (Common Customs Tariff) effective in calendar year 1995:

Report Code: SP9554A
AGR Number: SP5039
Page: 21
Seafood

Squid/Cuttlefish

Policy
Non-Tariff Barriers
During Spring 1994 several containers of U.S. squid were stopped at the Spanish border by Spanish authorities because of a copper content that was higher than the maximum allowable limit established by Spanish regulation (20 parts per million in edible meat). After involved discussions with Spanish Health authorities the problem was solved and the squid was released. Since June 1994, no other containers have been rejected. FAS/Madrid played a key role in obtaining the release of this squid, turning a potential trade disaster into a record year for U.S. exporters of squid to Spain.

Quality, Safety and Health
EU Directive 91/493, implemented in Spain by Royal Decree 1437/92 spells out the health conditions for the production and marketing of fishery products. EU Directive 93/185 establishes the form that must accompany seafood products which enter the EU.

Prices
The following prices (per kilogram, in pesetas) for squid and squid products are obtained from an indicative local market and are generally representative of prices in major Spanish urban areas:

Marketing
Market Development Opportunities
The Spanish squid market offers good opportunities for U.S. squid exports. Spain's demand for squid is increasing, and as a result U.S. exports to Spain rose dramatically in 1994. For 1995, U.S. exports could again increase if Spanish catches decline as expected. To take advantage of these market opportunities, U.S. exporters must be willing to undertake specific market promotion activities aimed at Spanish importers.

Report Code: SP9554A
AGR Number: SP5039
Page: 22
Seafood

Squid/Cuttlefish

Marketing
Marketing Facilities
The vast majority of Spanish imports are undertaken by frozen food processors. These companies also handle their own distribution.

Competitor Activities
The main import competition for the U.S. comes from already established squid suppliers such as India, Argentina and Morocco, because they offer low-priced products. However, in the case of India the squid is reported to be of very low quality. These countries also fall under the Generalized System of Preferences, and tariffs applied to their products are lower than those applied to U.S. products.

Report Code: SP9554A
AGR Number: SP5039
Page: 23
Seafood

Lobster

Production
General
Fresh lobster (Homarus) and spiny lobster (Panulirus) landed in Spanish ports, caught by Spanish vessels or taken from nurseries in 1994 totaled approximately 40 tons. These crustaceans are caught in northern Spain, mainly in Galicia. They are very scarce on the Spanish coastline, and no increases in production are expected for the near future. Frozen lobster landed in Spain and caught in other waters totaled approximately 2,000 tons in 1994.

Aquaculture - Wild Catch Production
Only about 5 tons of fresh lobster per year are produced in nurseries.  The remainder of Spain's fresh lobster catches are wild.

Production Mix
Most Spanish lobster catches consist of the homarus variety. Spiny lobster accounts for only 17 percent of total production.

Report Code: SP9554A
AGR Number: SP5039
Page: 24
Seafood

Lobster

Consumption
General
Consumption of lobster and spiny lobster is very low in Spain, due to the high cost of these species. Consumption in 1994 was estimated at around 90 grams per capita. About 40 percent of the lobsters consumed in Spain are imported frozen and carry a lower price.

Lobster is considered a luxury product and most of its consumption takes place during the Christmas period. With larger imports of frozen lobster at good prices, consumption could increase and be sustained throughout the year.

Substitution Patterns
Lobster and spiny lobster have to compete with other crustaceans such as shrimp, red shrimp, great red shrimp, prawn, Norway-lobster, and crab. The price of the latter group of crustaceans is lower, although this type of product is also consumed only on special occasions.

Trade
Trade Trends
In 1994 imports of lobster were 1,721 tons, a decrease of 7 percent from 1993. The decline is mainly due to the unfavorable exchange rate for Spanish importers caused by the peseta devaluations during 1993 and 1994. A recovery is expected for 1995 due to very recent revaluations of the Spanish peseta against the U.S. dollar. Imports of U.S. lobster in 1994 were 621 tons, versus 555 tons in 1993. Imports of live lobster from the U.S. amounted to 536 tons in 1993 and rose to 606 tons in 1994, despite the devaluation of the Spanish peseta.

Most Spanish lobster exports traditionally go to EU countries. Exports in 1994 rose due to the favorable exchange rate of EU currencies against the peseta. Exports are not expected to vary significantly due to the scarcity of this product. Spain is very active in importing and exporting lobsters.

Report Code: SP9554A
AGR Number: SP5039
Page: 25
Seafood

Lobster

Trade