Spain loses 51,000 jobs in agriculture in two years due to the drought

23.12.2024 466 views

The drought that Spain has experienced in the last two years has had a direct impact on the country's economy, with the agri-food sector being the hardest hit.

The production of some of the main foods has been drastically reduced due to the lack of water, leading to a decrease in associated labor and price increases that have affected the cost of living, warns the study The Agricultural Sector and the Food Industry in Spain: Main features and regional analysis in 2023 by Unicaja.

Olive oil is the paradigmatic example. Poor olive production in the last two seasons has led to a historic price increase for this food, which has driven food inflation. And if there are no olives to harvest or process, there is also no need for as many workers in the fields.

Andalusia and Catalonia, among the regions where agricultural employment has decreased the most

In total, employment in the agricultural sector has experienced a 6.2% decrease between 2021 and 2023, resulting in a loss of 51,000 jobs, as highlighted in Unicaja's analysis. Conversely, the rest of the productive sectors in Spain have seen increases of 7.4% during this period.

The number of people employed in agricultural activities has decreased in eleven autonomous communities, especially in Andalusia, one of the areas with the greatest weight of the sector in regional employment, which accounts for more than 30% of the national total. Only this autonomous community has lost around 35,500 employed workers in two years, a decrease of almost 13% in relative terms. The decline is similar in Castilla-La Mancha, while in Extremadura (the second community with the highest weight of agricultural employment), the number of employed workers has decreased by 9%.

Similarly, in Castilla y León, Comunidad Valenciana, and Catalonia, the number of employed individuals is lower than that of 2021, especially in the latter case (-12.1%). Catalonia has been the autonomous community most affected by the drought, especially in areas of cava and wine production such as Penedès or Priorat. Winemaking companies have already stated in recent weeks that their sales have declined due to the lack of product caused by the water scarcity.

On the contrary, in Murcia and Galicia, the number of employed individuals in agriculture has increased by more than 4% between 2021 and 2023.

The drought has also affected the evolution of Spanish agri-food exports. The value of exports surpassed 67 billion euros in 2023, representing an 18% growth compared to 2021. However, this increase is due to rising prices, as the export volume has decreased by 14%.

This decrease in volume has been widespread among the autonomous communities, with the exception of the Basque Country, the Balearic Islands, and Galicia. In Andalusia and Aragon (communities where these exports account for more than 30% and around 20% of their total export value, respectively), the decline has exceeded 20%, as has been the case in the Canary Islands.

When it comes to food production, the impact of drought is widespread, although extensive crops such as grasslands are among the most affected. The production of cereals has been significantly reduced, with cuts of over 50% in barley cultivation compared to the average of the years 2017-2021. Wheat production has dropped by more than 40% and corn production by almost 30%. These declines are behind the rise in food prices.

Fruit has also experienced declines, both due to the lack of rainfall and water restrictions for irrigation. The tangerine harvest, for example, was around 15% below the 2017-2021 average, and the orange harvest was slightly over 25% lower. The olive groves, on the other hand, maintain a production well below average despite a substantial improvement in the current season. The water shortage thus triggers a chain reaction that affects socioeconomic development.

 

Source - https://www.lavanguardia.com

01.10.2026

India - Kitchen budget in Mumbai takes a hit as veggie prices rise amid crop loss, low supply

Vegetable prices in Mumbai have risen sharply after Ganeshotsav and with the onset of Pitrupaksha, as erratic monsoon conditions, crop damage and lower arrivals tightened supplies, said traders. 

01.10.2026

Togo Plans Pilot Agricultural Insurance Scheme for Young Farmers and Entrepreneurs

Togo’s PAJEC entrepreneurship program plans to launch a pilot agricultural insurance scheme. The government has issued a call for expressions of interest to select a provider to design and roll out the scheme.

01.10.2026

India - Soybean prices recover as crop damage offsets pressure from rising arrivals

Indias soybean prices recovered sharply w-o-w on 30 September 2026 despite a rapid increase in new-crop arrivals, as concerns over crop damage and lower production estimates have offset pressure from increased supplies. 

01.10.2026

USA - Fruit growers face Nov. 20 crop insurance deadline

Northeast fruit growers have until Nov. 20 to purchase or update crop insurance for the 2027 crop year, according to Crop Growers, a crop insurance provider owned by Farm Credit East.

01.10.2026

IFPA releases statement on largest Cyclospora outbreak in U.S. history

The International Fresh Produce Association (IFPA) has called for greater collaboration between industry and public health authorities as the United States experiences what it describes as the largest Cyclospora outbreak on record.

01.10.2026

Ukraine introduces new rules for GM crops and produce

Ukraine's new law regulating genetically modified organisms (GMOs) and GMO products comes into force on September 16, introducing clearer requirements for the registration, cultivation, traceability, and labelling of GM crops.

30.09.2026

Spain - Fruit supplier targets 30-45% growth with year-round supply strategy

Senda Fruits is heading into another edition of Fruit Attraction with a clear objective: to expand its market presence and aim to meet the needs of its customers all year round. 

30.09.2026

Corn Stocks Shock U.S. Market as USDA Finds 2.1 Billion Bushels in Storage

USDA found 2.095 billion bushels of old-crop corn in storage, far above trade expectations and adding new pressure to U.S. grain markets.