Required Report - public distribution

**Date:** 10/24/2003

**GAIN Report Number:** SP3036

SP3036

**Spain**

**Fishery Products**

**Annual**

**2003**

**Approved by:**

![](media/image1.wmf)Lloyd J. Fleck

U.S. Embassy

**Prepared by:**

Magdalena Escudero

**Report Highlights:**

Spain's total catch continues to decline as a result of lower fish
stocks and limits on catches in both EU and non-EU waters. To offset the
smaller catch, imports of seafood now account for about half of total
consumption. In addition, aquaculture production continues to expand to
meet demand. Boosted by a weaker U.S. dollar and by supply problems for
some competitors, U.S. seafood exports are moving at a record pace:
during the first eight months of 2003, the value of U.S. seafood exports
to Spain increased by 41 percent from the same period a year earlier. In
terms of value, lobster is the most important U.S. seafood product
exported to Spain.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Madrid \[SP1\]

\[SP\]

Table of Contents

[Summary 3](#summary-1)

[STRATEGIC INDICATOR TABLE 4](#strategic-indicator-table)

[GENERAL SEAFOOD AND PRODUCTS 5](#general-seafood-and-products)

[Production 5](#production)

[Consumption 6](#consumption)

[Trade 7](#trade)

[Factors Affecting U.S. Trade 8](#factors-affecting-u.s.-trade)

[Marketing 9](#marketing)

[Policy 9](#policy)

[SQUID/CUTTLEFISH 12](#squidcuttlefish)

[Production 12](#production-1)

[Consumption 12](#consumption-1)

[Trade 13](#trade-1)

[Marketing 14](#marketing-1)

[LOBSTER 15](#lobster)

[Production 15](#production-2)

[Consumption 15](#consumption-2)

[Trade 16](#trade-2)

[Marketing 17](#marketing-2)

# Summary {#summary-1}

In 2003, Spain's total catch continues to decline as a result of lower
fish stocks and limits on catches in both EU and non-EU waters. To
offset the smaller catch, total imports of seafood reached about 1.34
million tons in 2002, which permitted consumption to remain stable.
Greater output from fish farms also helped meet demand. Seafood
consumption is expected to decline for the next few years due to higher
prices and to lower catch. In 2002, total exports of seafood (fresh and
frozen) rose by about 665,000 tons. Spain will continue to be an active
seafood trader in the foreseeable future, with most of its trade
conducted with other EU countries, as well as with Argentina, Morocco
and Namibia.

In 2002, U.S. seafood exports to Spain totaled \$68.9 million, a small
drop from the year before. During the first eight months of 2003,
however, U.S. seafood exports to Spain have increased by 41 percent in
value from the same period a year earlier. In terms of value, lobster is
the most important U.S. seafood product exported to Spain. This trade
has been picking up in 2003 after a decrease in 2002, when newly opened
direct flights from Canada to Madrid offered a better access to the
Spanish market. During the first six months of 2003, however, U.S.
market share has improved to 44 percent of Spain's imports, while that
for Canada reached only 33 percent.

At the end of 2002 the EU Commission approved the Common Fishery Policy
(CFP). One of the most important aspects of the CFP is the Total
Allowable Catch (TAC) for each country. The Commission proposed
reductions in Member State TACs in order to help some marine species to
recover from previous years depletion. Although Spain was able to
improve its TAC from the Commission's initial proposal, Spanish
fishermen were disappointed with the final decision because their quotas
for high-value species, such as monkfish, hake and scampi, were reduced.

Spanish fishermen were also disappointed by other EU policy changes.
Subsidies for the modernization or construction of new vessels,
previously established in the Berlin Council, were supposed to be in
force until 2006. The EU will now eliminate the subsidies a year earlier
and has excluded vessels of over 400 tons from the program. About 90
percent of the Spanish fleet is composed by vessels of less than 100
tons; loss of the subsidy will make it more difficult for Spanish
fishermen to obtain the larger vessels that will be economically
competitive in the future.

Current exchange rate: 1 euro = \$1.16

# STRATEGIC INDICATOR TABLE

  -------------------- ------------- ------------ ------------ -------------- --------------
  FISHERY PRODUCTS                                                            
  STRATEGIC INDICATOR                                                         
  TABLE                                                                       

                                                                              

                                     Previous     Current      Next           5 Year

                                     Year         Year         Year           Projections/

  U.S. Competitive     Measurement   Situation    Situation    Expectations   Expectations
  Position             \*                                                     

  U.S. Access Relative Worse, equal, Equal        Equal        Equal          Equal
  to Rest of World‑    or better                                              
  Non‑Tariff Measures  (choose one)                                           
  (NTM)                                                                       

  U.S. Access Relative Higher,       Equal        Equal        Equal          Equal
  to Rest of World ‑   equal, or                                              
  Tariffs              lower (choose                                          
                       one)                                                   

  Presence of          More          More         More         More           More
  Marketing Programs   aggressive,   Aggressive   Aggressive   Aggressive     Aggressive
  (domestic and 3rd    about the                                              
  country) versus U.S. same, or less                                          
  programs             aggressive                                             
                       (select one)                                           

  U.S. Prices Relative Higher,       Higher       Equal        Equal          Equal
  to Domestic and 3rd  equal, or                                              
  Country Prices       lower (choose                                          
                       one)                                                   

  U.S. Market Share (3 Percent       1.3          1.6          2.0            2.2
  Year. Average)                                                              

                                                  Current      Next           5 Year

                                     Year         Year         Year           Projections/

  Market               Measurement   Situation    Situation    Expectations   Expectations
  Attractiveness       \*                                                     

  Per Capita           Kg per person 37           36           36             38
  Consumption of All                                                          
  Fishery Products                                                            

  Per Capita           Kg per person 113          114          114            114
  Consumption of                                                              
  animal proteins                                                             
  (excluding fishery                                                          
  products)                                                                   

  Including poultry,                                                          
  pork, beef, lamb and                                                        
  rabbit meat. Dairy                                                          
  products and eggs                                                           
  are excluded                                                                

  Percent of           Percent       97           98           98             98
  population with                                                             
  refrigerators                                                               

  Percent of fishery   Percent       45           43           47             50
  product sales at                                                            
  supermarkets                                                                

  Percent of total     Percent       37           39           40             45
  food sales at                                                               
  supermarkets                                                                

  Percent of animal    Percent       44           45           47             50
  protein sales at                                                            
  supermarkets                                                                
  (excluding fishery                                                          
  products)                                                                   

  Percent of fishery   Percent       22           23           24             25
  sales at HRI                                                                
  establishments                                                              

  Percent of fishery   Percent       32           31           30             25
  sales at open                                                               
  markets                                                                     

                                                                              

  \* If an explanation                                                        
  of rating is needed,                                                        
  insert a row and                                                            
  provide an                                                                  
  explanation in the                                                          
  row below.                                                                  
  -------------------- ------------- ------------ ------------ -------------- --------------

# GENERAL SEAFOOD AND PRODUCTS

### Production

The total quantity of marine fish caught by Spanish vessels and landed
in Spanish ports was estimated by FAO at about 960,794 tons in CY 2001;
this was marginally above the total for the previous year. Although
official data are not available for 2002 or 2003, industry sources say
that a drop is occurring due to an additional reduction in catches in EU
waters. Moroccan waters are expected to remain closed to the Spanish
fleet for the next few years, although they were partially open to a few
Galician vessels after the oil pollution from the tanker Prestige in the
Galician coast. Encouraged by good domestic prices, aquaculture
production rose again in 2002 and is expected to continue to rise in the
next few years. Canned fish production in 2002 totaled 268,929 tons, up
3.3 percent from 2001. In addition, smoked fish production continued
growing, by five percent to about 15,500 tons, fueled by an increased
demand.

The main fresh species landed in Spain are blue fish, hake and whiting,
cod, tuna, and cephalopods. Mussels are the most popular seafood item in
Spain, primarily due to their low prices and large production in
Galicia. Tuna accounts for about half of all fish used by the Spanish
canning industry, followed by sardines, squid, mussels and mackerel.

Spanish aquaculture production for 1998-2002 was as follows (tons):

+------------------+---------+---------+---------+---------+---------+
|                  | *       | *       | *       | *       | *       |
|                  | *1998** | *1999** | *2000** | *2001** | *2002** |
+==================+=========+=========+=========+=========+=========+
| # Fish           |         |         |         |         |         |
+------------------+---------+---------+---------+---------+---------+
| \- Trout         | 26,500  | 29,000  | 33,133  | 34,000  | 345,00  |
+------------------+---------+---------+---------+---------+---------+
| \- Gilthead      | 6,330   | 7,500   | 8,242   | 8,500   | 11,673  |
| bream            |         |         |         |         |         |
+------------------+---------+---------+---------+---------+---------+
| \- Turbot        | 1,850   | 2,750   | 3,378   | 3,900   | 4,067   |
+------------------+---------+---------+---------+---------+---------+
| \- Salmon        | 800     | 850     | 225     | 225     | 323     |
+------------------+---------+---------+---------+---------+---------+
| \- Sea bass      | 1,408   | 1,658   | 1,837   | 1,900   | 3,437   |
+------------------+---------+---------+---------+---------+---------+
| \- Tuna          |         |         | 3,682   | 6,000   | 4,846   |
+------------------+---------+---------+---------+---------+---------+
| \- Others        | 358     | 360     | 837     | 900     | 700     |
+------------------+---------+---------+---------+---------+---------+
| **Shellfish**    |         |         |         |         |         |
+------------------+---------+---------+---------+---------+---------+
| \- Mussels       | 190,000 | 204,000 | 247,729 | 242,833 | 255,300 |
+------------------+---------+---------+---------+---------+---------+
| \- Oysters       | 3,600   | 8,500   | 4,004   | 4,565   | 4,700   |
+------------------+---------+---------+---------+---------+---------+
| \- Clams         | 4,300   | 6,000   | 5,558   | 4,158   | 4,600   |
+------------------+---------+---------+---------+---------+---------+
| \- Others        | 4,500   | 5,200   | 9,000   | 9,500   | 1,900   |
+------------------+---------+---------+---------+---------+---------+

Source: Spanish Ministry of Agriculture.

Spanish canned seafood production in 2002 was as follows:

  ----------------- ------------- -------------- ------------- ------------
  **Product**       **Volume                     **Average     
                    (M.T.)**                     Price         
                                                 Euros/Kg**    

                    **2001**      **2002**       **2001**      **2002**

  Sardines          25,413        26,175         2.82          2.78

  White Tuna        12,025        12,085         7.02          7.20

  Tuna              145,458       152,004        2.43          2.36

  Mackerel          11,740        11,750         4.15          4.21

  Mussels           11,866        12,281         6.32          6.32

  Cephalopods       11,908        11,925         1.53          1.53

  Cockles           5,763         5,532          3.37          3.53

  Anchovies         9,616         10,289         7.16          6.92

  Other             26,491        26,888         3.03          3.04

  **TOTAL**         **260,280**   **268,929**    **3.15**      **3.11**
  ----------------- ------------- -------------- ------------- ------------

Source: ANFACO (Canned Fish Producers Association)

### Consumption

Spain is one of the leading *per capita* consumers of seafood products
in the EU and third in the world after Japan and Portugal. According to
the Spanish Ministry of Agriculture, fish consumption during 2002 was
about 36,6 kilos/per capita. Smaller catches were offset by imports.
While consumer preferences are largely determined by price, fresh fish
are generally preferred over frozen products. Seafood accounts for 14
percent of Spain's total food expenses, and the percentage has been
increasing annually, though expenditures continue to increase both in
volume (4.5%) and in value (3.9%) from a year earlier. In 2002, total
seafood consumption was almost 1.5 million tons, of which 1,121,950 tons
were consumed at home and 364,050 tons in the HRI sector. Consumption by
type included: fresh fish 551,413 tons; frozen fish 132,244 tons;
shellfish 287,609 tons; and canned seafood 287,609 tons.

According to Mercamadrid, the largest seafood wholesale market in Spain,
the main products consumed are:

  ------------------------------------------------------------------------
  **Fresh fish**           **Frozen fish**         **Shellfish**
  ------------------------ ----------------------- -----------------------
  Hake                     Squid                   Mussels

  Anchovies                Hake                    Littleneck clams

  Whiting                  Prawns                  Other clams

  Sardines                 Shrimp                  Shrimp

  Sole                     Swordfish               Crab

  Salmon                   Octopus                 Cockles

  Cod                      Whiting                 Oysters

  Trout                    Cuttlefish              
  ------------------------------------------------------------------------

### Trade

In CY 2002, imports of seafood products, including prepared or preserved
seafood, totaled 1,339,247 tons, down seven percent from the previous
year. About a quarter came from other EU countries, with Argentina,
Morocco, Namibia, the Falkland Islands and the United States as the
other major suppliers. The main fresh fish imported continue to be
sardines, hake, salmon, flounder and anchovies. The primary frozen
species are hake, tuna and sole. As the trend toward lower catches is
expected to continue, imports should continue growing over the next few
years. During the first six months of 2003, imports of seafood have
increased by 13 percent in comparison with the same period a year
earlier. The table below shows imports by product category.

**2000-2002 Spanish Seafood Imports (tons)**

  ----------------- ----------------------- ----------------- ----------------- -----------------
  **BTN**           **Product**             **2000**          **2001**          **2002**

  0302              Fish, fresh/chilled     237,877           252,413           240,911

  0303              Fish, frozen            333,113           410,885           389,764

  0304              Fish fillets            99,560            134,345           116,639

  0305              Fish, dried, salted     55,974            47,865            44,630

  0306              Crustaceans             145,078           161,915           154,260

  0307              Mollusks                320,311           363,997           324,740

  ***Sub-Total***                           ***1,191,913***   ***1,371,420***   ***1,270,944***

                                                                                

  16.04             Prepared or Preserved   60,566            52,638            55,087
                    fish                                                        

  16.05             Crustacean/Mollusks     13,182            14,544            13,216

  ***Sub-Total***                           ***73,748***      ***67,182***      ***68,303***

                                                                                

  **TOTAL**                                 **1,265,661**     **1,438,602**     **1,339,247**
  ----------------- ----------------------- ----------------- ----------------- -----------------

Source: Spanish Customs Office

In 2002, exports of seafood products, including processed products,
reached 777,496 tons, a decrease of 15 percent from the previous year.
The main destinations are other EU countries, mainly Portugal, Italy and
France, which combined account for 45 percent of total exports.

**Spanish Seafood Exports, 2000-2002 (tons)**

  ----------------- ----------------------- --------------- --------------- ---------------
  **BTN**           **Product**             **2000**        **2001**        **2002**

                                                                            

  0302              Fish, fresh/chilled     78,058          83,559          75,573

  0303              Fish, frozen            381,202         456,428         356,963

  0304              Fish fillets            38,534          36,615          42,456

  0305              Fish, dried, salted     10,957          11,418          10,372

  0306              Crustaceans             18,722          22,241          27,394

  0307              Mollusks                143,058         164,235         148,453

  ***Sub-Total***                           ***670,531***   ***774,496***   ***661,211***

                                                                            

  16.04             Prepared or Preserved   101,804         111,277         93,969
                    fish                                                    

  16.05             Crustaceans/Mollusks    21,810          24,654          22,766

  ***Sub-Total***                           ***123,614***   ***135,931***   ***116,735***

                                                                            

  **TOTAL**                                 **794,145**     **910,427**     **777,946**
  ----------------- ----------------------- --------------- --------------- ---------------

Source: Spanish Customs Office

### Factors Affecting U.S. Trade

In CY 2002, U.S. seafood exports to Spain totaled 25,848 tons valued at
\$69 million. During the first eight months of 2003, however, there has
been an increase of over 40 percent in value over the year- earlier
period. Shipments of U.S. frozen seafood and live lobster to Spain
should set new records in 2003, and are expected to remain buoyant in
the next few years. The last year's established flight of Air Canada
between Madrid and Montreal has opened a pipeline for Canadian live
lobster and partially displaced U.S. products in the Madrid market. All
live lobster and fresh fish from both the U.S. and Canada are
transported by air.

### Marketing

Lobster, salmon, fresh whiting, frozen squid, surimi and frozen fish
(especially cod and tuna) have a large potential for U.S. exporters.
Demand in the canning industry for frozen tuna is stronger due to lower
catches of tuna by the Spanish fleet. In addition, demand for anchovies,
sardines and mackerel continues to be strong and may increase further
given the steady development of the canning industry and its exports.
Potential also exists in the value-added or prepared fish sector as
changing work patterns and lifestyles have increased the demand for
ready-to-eat products. Demand for lobster is strong in Spain due to its
increased use in the popular rice dish, paella, and for special occasion
banquets. The use of surimi in salads is very popular. Finally, fresh
fish (mainly whiting and hake) imported by air for direct consumption is
also enjoying solid demand.

Both Spain and the other EU countries have a large presence at trade
fairs and are engaged in promotional campaigns. The main seafood shows
in Europe are the Brussels Seafood Show and CONXEMAR in Vigo, Spain. The
Office of Agricultural Affairs has been organizing a U.S. pavilion in
CONXEMAR during the last five editions; many U.S. exhibitors have had
excellent success at this show.

The declining catch of the Spanish fleet is putting strong upward
pressure on prices. At Mercamadrid (the largest wholesale market in
central Spain) prices for fresh fish rose by about 11 percent between
June 2001 and June 2002, while those shellfish rose by 28 percent. Only
prices for frozen fish remained stable. The following table lists prices
(in euros/kg.) for seafood at the wholesale market level; these are
averages for the month of September.

  -----------------------------------------------------------------------
  **Species/type**        **2001 2001     **2002 2002     **2003**
                          2001**          200220 2002**   
  ----------------------- --------------- --------------- ---------------
  Hake, fresh             9.03            8.73            9.79

  Hake, frozen sliced     4.45            3.86            4.36

  Cod, fresh fillets      8.59            8.11            8.26

  Salmon, fresh           3.59            3.67            3.63

  Sole, fresh             11.52           13.52           13.45

  Sole, frozen            7.21            7.21            7.21

  Whiting, fresh          5.48            5.68            6.04

  Sardines fresh          1.42            1.37            1.37
  -----------------------------------------------------------------------

Mercamadrid, through its web-page, provides prices on a daily basis
(www:mercamadird.es). This information is very useful to exporters,
since these prices closely track import price trends.

### 

### Policy

In December 2002, the EU Commission announced its reforms of the Common
Fishery Policy. The Commission also revised national total allowable
catches (TACs) in EU waters. The EU also negotiates bilateral agreements
with third countries and with international fishing organizations, such
as NAFO.

The 2003 TAC for Spain and for the total EU, for relevant species is
included in the following tables. (This information is contained in
Council Regulation 2341/2002 of 20 December 2002, published in the
Official Journal L356 dated 31 December 2002.)

# 

# North East Atlantic and Greenland

  ------------------------------ -------------- --------------- -----------
  **Species**                    **EU TAC       **Spanish TAC   **%Change
                                 (Mt)**         (Mt)**          from 2002**

  Herring                        35,500         41              \- 49

  Cod - Zone I, II               395,000        2,204           0

  Cod - Zone I, IIb              395,000        6,747           0

  Redfish -- Zone V, XII, XIV    119,000        1,949           +18
  ------------------------------ -------------- --------------- -----------

Western Community Waters -- ICES areas Vb (EC waters) VI, VII, VIII, IX,
X

  ------------------------------ -------------- --------------- -----------
  **Species**                    **EU TAC       **Spanish TAC   **%Change
                                 (Mt)**         (Mt)**          from 2002**

  Anchovy -- Zone VIII           33,000         29,700          0

  Anchovy -- Zone IX, X          8,000          3,826           0

  Megrims -- Zone Vb VI, XII,    4,360          495             0
  XIV                                                           

  Megrims -- Zone VII            14,336         4,301           +7

  Megrims -- Zone VIIIa, b, d, e 1,664          921             +7

  Megrims -- Zone VIIIc, X       2,400          2,215           -41

  Anglerfish -- Zone Vb, VI,     3,180          122             -34
  XII, XIV                                                      

  Anglerfish -- Zone VII         15,810         581             -15

  Anglerfish -- Zone VIIIc, IX,  4,000          3,332           -16
  X                                                             

  Whiting -- Zone VIII           5,600          2,240           0

  Hake -- Zone Vb, VI, VII, XII, 16,823         4,959           +11
  XIV                                                           

  Hake -- Zone VIIIa, b, d, e    11,220         3,452           +11

  Hake -- Zone VIIIc, IX, X      7,000          4,480           -13

  Blue Whiting -- Zone V, VI,    107,281        14,304          0
  VII, XII, XIV                                                 

  Blue Whiting -- Zone VIIIa, b, 14,654         5,530           0
  d, e                                                          

  Blue Whiting -- Zone VIIIc,    30,415         24,332          0
  IX, X                                                         

  Mackerel -- Zone VIII, IX, X   35,000         28,846          -15

  Horse Mackerel -- Zone Vb, VI, 130,000        12,875          -10
  VII, VIIIa, b, d, e XII, XIV                                  

  Horse Mackerel -- Zone VIIIc,  55,000         29,587          -5
  IX                                                            
  ------------------------------ -------------- --------------- -----------

# North West Atlantic - NAFO

+-----------------------------+-------------+--------------+----------+
| **Species**                 | **TAC       | **Spanish    | **Var    |
|                             | (Mt.)**     | Quota**      | iation** |
|                             |             |              |          |
|                             |             |              | **%**    |
+-----------------------------+-------------+--------------+----------+
| Greenland Halibut           | 31,122      | 11,512       | +5       |
+-----------------------------+-------------+--------------+----------+
| Redfish                     | 5,000       | 233          | 0        |
+-----------------------------+-------------+--------------+----------+

# 

# Highly Migratory Fish -- All areas

+--------------------------------+----------+--------------+----------+
| **Species**                    | **TAC    | **Spanish    | **Var    |
|                                | (Mt.)**  | Quota**      | iation** |
|                                |          |              |          |
|                                |          |              | **%**    |
+--------------------------------+----------+--------------+----------+
| Bluefin Tuna                   | 32,000   | 6,383.7      | +0.2     |
+--------------------------------+----------+--------------+----------+
| Swordfish--Atlantic O, North   | 14,000   | 5,594.7      | +33      |
| lat. 5º N                      |          |              |          |
+--------------------------------+----------+--------------+----------+
| Swordfish-Atlantic O, South    | 16,631   | 5,634        | -4       |
| lat. 5º N                      |          |              |          |
+--------------------------------+----------+--------------+----------+
| Northern Albacore -- Atlantic  | 34,500   | 25,928       | +45      |
| O, North lat. 5º N             |          |              |          |
+--------------------------------+----------+--------------+----------+
| Southern Albacore              | 29,200   | 1,617        | -5       |
+--------------------------------+----------+--------------+----------+
| Bigeye Tuna                    | 36,840   | 19,439       | +32      |
+--------------------------------+----------+--------------+----------+

# SQUID/CUTTLEFISH

+--------------+--------+-------+------+-------+------+-------+------+
| Country -    |        |       |      |       |      |       |      |
| Spain        |        |       |      |       |      |       |      |
+--------------+--------+-------+------+-------+------+-------+------+
| *            |        |       |      |       |      |       |      |
| *Commodity - |        |       |      |       |      |       |      |
| Squid/       |        |       |      |       |      |       |      |
| Cuttlefish** |        |       |      |       |      |       |      |
|              |        |       |      |       |      |       |      |
| (MT)         |        |       |      |       |      |       |      |
+--------------+--------+-------+------+-------+------+-------+------+
|              | 2002   | Re    | 2003 | Est   | 2004 | For   | UOM  |
|              |        | vised |      | imate |      | ecast |      |
+--------------+--------+-------+------+-------+------+-------+------+
|              | USDA   | Post  | USDA | Post  | USDA | Post  |      |
|              | Of     | Est   | Offi | Est   | Offi | Est   |      |
|              | ficial | imate | cial | imate | cial | imate |      |
|              | \      | \[    | \[O  | \[    | \[O  | \[    |      |
|              | [Old\] | New\] | ld\] | New\] | ld\] | New\] |      |
+--------------+--------+-------+------+-------+------+-------+------+
| Market Year  |        | 01    |      | 01    |      | 01    | MM/  |
| Begin        |        | /2002 |      | /2003 |      | /2004 | YYYY |
+--------------+--------+-------+------+-------+------+-------+------+
| ##           | 6000   | 6000  | 6000 | 5000  | 0    | 5000  | (MT) |
| ####### Begi |        |       |      |       |      |       |      |
| nning Stocks |        |       |      |       |      |       |      |
+--------------+--------+-------+------+-------+------+-------+------+
| **Total      | 22000  | 23000 | 0    | 22000 | 0    | 21000 | (MT) |
| Production** |        |       |      |       |      |       |      |
+--------------+--------+-------+------+-------+------+-------+------+
| **Intra-EC   | 15500  | 9400  | 0    | 10000 | 0    | 10000 | (MT) |
| Imports**    |        |       |      |       |      |       |      |
+--------------+--------+-------+------+-------+------+-------+------+
| **Other      | 127000 | 1     | 0    | 1     | 0    | 1     | (MT) |
| Imports**    |        | 29300 |      | 30000 |      | 32000 |      |
+--------------+--------+-------+------+-------+------+-------+------+
| **TOTAL      | 142500 | 1     | 0    | 1     | 0    | 1     | (MT) |
| Imports**    |        | 38700 |      | 40000 |      | 42000 |      |
+--------------+--------+-------+------+-------+------+-------+------+
| **TOTAL      | 170500 | 1     | 6000 | 1     | 0    | 1     | (MT) |
| SUPPLY**     |        | 67700 |      | 67000 |      | 68000 |      |
+--------------+--------+-------+------+-------+------+-------+------+
| **Intra-EC   | 50500  | 50800 | 0    | 50000 | 0    | 49000 | (MT) |
| Exports**    |        |       |      |       |      |       |      |
+--------------+--------+-------+------+-------+------+-------+------+
| **Other      | 9000   | 12600 | 0    | 11000 | 0    | 11000 | (MT) |
| Exports**    |        |       |      |       |      |       |      |
+--------------+--------+-------+------+-------+------+-------+------+
| **TOTAL      | 59500  | 63400 | 0    | 61000 | 0    | 60000 | (MT) |
| Exports**    |        |       |      |       |      |       |      |
+--------------+--------+-------+------+-------+------+-------+------+
| **Domestic   | 105000 | 99300 | 0    | 1     | 0    | 1     | (MT) |
| C            |        |       |      | 01000 |      | 03000 |      |
| onsumption** |        |       |      |       |      |       |      |
+--------------+--------+-------+------+-------+------+-------+------+
| **Other      | 0      | 0     | 0    | 0     | 0    | 0     | (MT) |
| Use/Loss**   |        |       |      |       |      |       |      |
+--------------+--------+-------+------+-------+------+-------+------+
| **TOTAL      | 105000 | 99300 | 0    | 1     | 0    | 1     | (MT) |
| U            |        |       |      | 01000 |      | 03000 |      |
| tilization** |        |       |      |       |      |       |      |
+--------------+--------+-------+------+-------+------+-------+------+
| **Ending     | 6000   | 5000  | 0    | 5000  | 0    | 5000  | (MT) |
| Stocks**     |        |       |      |       |      |       |      |
+--------------+--------+-------+------+-------+------+-------+------+
| **TOTAL      | 170500 | 1     | 0    | 1     | 0    | 1     | (MT) |
| DI           |        | 67700 |      | 67000 |      | 68000 |      |
| STRIBUTION** |        |       |      |       |      |       |      |
+--------------+--------+-------+------+-------+------+-------+------+

### Production

According to trade sources, the Spanish squid catch was about 23,000
tons in 2002 due to higher catches in Mauritanian waters as a
consequence of an agreement signed in 2002 between the EU and
Mauritania. To meet higher demand mainly from other EU countries, Spain
increased imports in 2002 and should continue to do so in the next few
years

Most of the squid consumed in Spain has been frozen. Most squid caught
be Spanish vessels is processed and frozen at sea. Once it arrives in
port, the squid is sent to factories, where it is thawed, further
processed and refrozen. Retailers may subsequently re-thaw this product
and sell it as "fresh."

### Consumption

In 2002, Spanish squid consumption increased slightly. Most is consumed
directly, but about 12,000 tons were used by the canning industry.
Consumption is expected to be stable in the next few years, as higher
intake by the canning industry should be offset by lower "fresh"
consumption.

### Trade

Most squid and cuttlefish imports are frozen. In 2002, imports from the
main suppliers, the Falkland Islands and Morocco, decreased, while U.S.
exports remained steady. Total imports during the first six months of
2003 have increased by five percent; India has became the main supplier,
followed by the Falkland Islands and China; shipments from the U.S. are
off by more than 50 percent.

In 2002, the volume of Spanish exports decreased by about 36 percent.
This drop was probably due to larger availability of product from Peru
and Thailand in the EU market.

**Spanish Imports of Squid/Cuttlefish (tons)**

+------------------------+---------------+----------------+-----------+
| ## Import Trade Matrix |               |                |           |
+------------------------+---------------+----------------+-----------+
| ## Country - Spain     |               |                |           |
+------------------------+---------------+----------------+-----------+
| Commodity -            |               |                |           |
| Squid/Cuttlefish       |               |                |           |
+------------------------+---------------+----------------+-----------+
| Time Period            | CY            | Units:         | Metric    |
|                        |               |                | Tons      |
+------------------------+---------------+----------------+-----------+
| Imports for:           | 2001          |                | 2002      |
+------------------------+---------------+----------------+-----------+
| U.S.                   | 4492          | U.S.           | 4939      |
+------------------------+---------------+----------------+-----------+
| Others                 |               | Others         |           |
+------------------------+---------------+----------------+-----------+
| Falkland Islands       | 42489         | Falkland Is.   | 32975     |
+------------------------+---------------+----------------+-----------+
| Morocco                | 23044         | Morocco        | 25430     |
+------------------------+---------------+----------------+-----------+
| India                  | 22888         | India          | 24124     |
+------------------------+---------------+----------------+-----------+
| China                  | 12940         | China          | 11329     |
+------------------------+---------------+----------------+-----------+
| Mauritania             | 5522          | Peru           | 4117      |
+------------------------+---------------+----------------+-----------+
| EU Countries           | 11286         | Mauritania     | 4075      |
+------------------------+---------------+----------------+-----------+
|                        |               | EU Countries   | 9400      |
+------------------------+---------------+----------------+-----------+
|                        |               |                |           |
+------------------------+---------------+----------------+-----------+
| Total for Others       | 118169        |                | 111450    |
+------------------------+---------------+----------------+-----------+
| Others not Listed      | 28553         |                | 22331     |
+------------------------+---------------+----------------+-----------+
| Grand Total            | 151214        |                | 138720    |
+------------------------+---------------+----------------+-----------+

**Spanish Exports of Squid/Cuttlefish (tons)**

+------------------------+-------------+---------------+--------------+
| #####                  |             |               |              |
| ## Export Trade Matrix |             |               |              |
+------------------------+-------------+---------------+--------------+
| Country - Spain        |             |               |              |
+------------------------+-------------+---------------+--------------+
| Commodity              |             |               |              |
|                        |             |               |              |
| Squid/Cuttlefish       |             |               |              |
+------------------------+-------------+---------------+--------------+
| Time Period            | Calendar    | Units:        | Metric Tons  |
|                        | Year        |               |              |
+------------------------+-------------+---------------+--------------+
| Exports for:           | 2001        |               | 2002         |
+------------------------+-------------+---------------+--------------+
| U.S.                   |             | U.S.          |              |
+------------------------+-------------+---------------+--------------+
| Others                 |             | Others        |              |
+------------------------+-------------+---------------+--------------+
| Italy                  | 32040       | Italy         | 29231        |
+------------------------+-------------+---------------+--------------+
| Cuba                   | 7856        | Portugal      | 11097        |
+------------------------+-------------+---------------+--------------+
| Portugal               | 7186        | France        | 6487         |
+------------------------+-------------+---------------+--------------+
| France                 | 6862        |               |              |
+------------------------+-------------+---------------+--------------+
|                        |             |               |              |
+------------------------+-------------+---------------+--------------+
| Total for Others       | 53944       |               | 46815        |
+------------------------+-------------+---------------+--------------+
| Others not Listed      | 19575       |               | 0            |
+------------------------+-------------+---------------+--------------+
| Grand Total            | 73519       |               | 46815        |
+------------------------+-------------+---------------+--------------+

### Marketing

Spain will continue to offer good opportunities for U.S. squid exports.
Imports already account for nearly 90 percent of Spain's total supply
and the local catch is expected to decline further in coming years. The
main competition to U.S. squid comes from well- established squid
suppliers, including other EU countries, India, the Falkland Islands,
China, and Morocco. Most of the trade is handled by frozen food
processors, who also organize their own distribution.

The following prices (in euros/kg) for squid were obtained from
Mercamadrid and are generally representative of prices in major Spanish
wholesale markets. These are averages for the month of September for the
past three years.

  ------------------------------------------------------------------------
  **Product**                **2001**       **2002**        **2003**
  -------------------------- -------------- --------------- --------------
  Squid, whole, fresh        6.76           8.48            7.27

  Squid, whole, frozen       4.16           4.25            5.16
  frozenfrozen                                              
  ------------------------------------------------------------------------

# LOBSTER

+-----------+-------+--------+-------+--------+-------+--------+-----+
| Country - |       |        |       |        |       |        |     |
| Spain     |       |        |       |        |       |        |     |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| #         |       |        |       |        |       |        |     |
| ####### C |       |        |       |        |       |        |     |
| ommodity  |       |        |       |        |       |        |     |
| - Lobster |       |        |       |        |       |        |     |
|           |       |        |       |        |       |        |     |
| (MT)      |       |        |       |        |       |        |     |
+-----------+-------+--------+-------+--------+-------+--------+-----+
|           | 2002  | R      | 2003  | Es     | 2004  | Fo     | UOM |
|           |       | evised |       | timate |       | recast |     |
+-----------+-------+--------+-------+--------+-------+--------+-----+
|           | USDA  | Post   | USDA  | Post   | USDA  | Post   |     |
|           | Off   | Es     | Off   | Es     | Off   | Es     |     |
|           | icial | timate | icial | timate | icial | timate |     |
|           | \[    | \      | \[    | \      | \[    | \      |     |
|           | Old\] | [New\] | Old\] | [New\] | Old\] | [New\] |     |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| Market    |       | 0      |       | 0      |       | 0      | M   |
| Year      |       | 1/2002 |       | 1/2003 |       | 1/2004 | M/Y |
| Begin     |       |        |       |        |       |        | YYY |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| Beginning | 100   | 100    | 100   | 100    | 0     | 100    | (   |
| Stocks    |       |        |       |        |       |        | MT) |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| Total     | 1500  | 1500   | 0     | 1600   | 0     | 1600   | (   |
| P         |       |        |       |        |       |        | MT) |
| roduction |       |        |       |        |       |        |     |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| Intra-EC  | 620   | 923    | 0     | 900    | 0     | 900    | (   |
| Imports   |       |        |       |        |       |        | MT) |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| Other     | 5600  | 6302   | 0     | 6400   | 0     | 6500   | (   |
| Imports   |       |        |       |        |       |        | MT) |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| TOTAL     | 6220  | 7225   | 0     | 7300   | 0     | 7400   | (   |
| Imports   |       |        |       |        |       |        | MT) |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| TOTAL     | 7820  | 8825   | 100   | 9000   | 0     | 9100   | (   |
| SUPPLY    |       |        |       |        |       |        | MT) |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| Intra-EC  | 2500  | 2654   | 0     | 2700   | 0     | 2700   | (   |
| Exports   |       |        |       |        |       |        | MT) |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| Other     | 1     | 29     | 0     | 30     | 0     | 30     | (   |
| Exports   |       |        |       |        |       |        | MT) |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| TOTAL     | 2501  | 2683   | 0     | 2730   | 0     | 2730   | (   |
| Exports   |       |        |       |        |       |        | MT) |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| Domestic  | 5219  | 6042   | 0     | 6170   | 0     | 6270   | (   |
| Co        |       |        |       |        |       |        | MT) |
| nsumption |       |        |       |        |       |        |     |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| Other     | 0     | 0      | 0     | 0      | 0     | 0      | (   |
| Use/Loss  |       |        |       |        |       |        | MT) |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| TOTAL     | 5219  | 6042   | 0     | 6170   | 0     | 6270   | (   |
| Ut        |       |        |       |        |       |        | MT) |
| ilization |       |        |       |        |       |        |     |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| Ending    | 100   | 100    | 0     | 100    | 0     | 100    | (   |
| Stocks    |       |        |       |        |       |        | MT) |
+-----------+-------+--------+-------+--------+-------+--------+-----+
| TOTAL     | 7820  | 8825   | 0     | 9000   | 0     | 9100   | (   |
| DIS       |       |        |       |        |       |        | MT) |
| TRIBUTION |       |        |       |        |       |        |     |
+-----------+-------+--------+-------+--------+-------+--------+-----+

### Production

According to trade sources, supplies of lobster (*Homarus*) and spiny
lobster (*Panulirus*) landed in Spanish ports by Spanish vessels or
taken from lobster farms remained stable at about 1,600 tons. (No
official statistics are available.) Nearly all of this amount is derived
from wild catch, with less than 40 tons per year produced by lobster
farms. Most are caught in northern Spain, mainly in Galicia, but they
are very scarce, and no increases in production are expected in the
future. The majority of the Spanish catch is of the *Homarus* genus.

### Consumption

Lobster consumption rose in CY 2002 despite the high prices. About 50
percent of total lobster consumption consists of frozen imported spiny
lobster. Demand for live lobster (*Homarus*) is growing due to increased
use of the product for special occasions, such as wedding banquets, and
due to continued use as an ingredient in high quality paellas. U.S. and
Canadian lobster compete directly in the Spanish market.

### Trade

In 2002, imports of live lobsters from Canada increased by 34 percent
while those from the U.S. (mainly live lobsters) declined by about one
percent. This trend is not as strong as during the last two previous
years of 2003: during the first six months of the year, imports of
lobsters from Canada rose by five percent while those from the U.S.
increased by 7.5 percent. Most of this shift is due to a new Air Canada
flight between Montreal and Madrid which permits Canadian product to be
shipped directly. Prior to the establishment of this service,
substantial amounts of Canadian lobster were being transhipped thru
Boston airport and recorded as U.S. exports. Due to the popularity of
lobsters (*Homarus*), total imports could rise even further in CY 2003.

**Spanish Imports of Lobster ( tons)**

+---------------------+--------------+--------------------+-----------+
| #######             |              |                    |           |
| Import Trade Matrix |              |                    |           |
+---------------------+--------------+--------------------+-----------+
| ######              |              |                    |           |
| ## Country -- Spain |              |                    |           |
+---------------------+--------------+--------------------+-----------+
| Commodity --        |              |                    |           |
| Lobster             |              |                    |           |
+---------------------+--------------+--------------------+-----------+
| Time Period         | CY           | Units:             | Metric    |
|                     |              |                    | Tons      |
+---------------------+--------------+--------------------+-----------+
| Imports for:        | 2001         |                    | 2002      |
+---------------------+--------------+--------------------+-----------+
| U.S.                | 1,693        | U.S.               | 1,520     |
+---------------------+--------------+--------------------+-----------+
| Others              |              | Others             |           |
+---------------------+--------------+--------------------+-----------+
| Cuba                | 2,280        | Cuba               | 3,109     |
+---------------------+--------------+--------------------+-----------+
| Canada              | 838          | Canada             | 980       |
+---------------------+--------------+--------------------+-----------+
| United Kingdom      | 465          | United Kingdom     | 547       |
+---------------------+--------------+--------------------+-----------+
|                     |              | Peru               | 186       |
+---------------------+--------------+--------------------+-----------+
|                     |              | Belgium            | 136       |
+---------------------+--------------+--------------------+-----------+
|                     |              |                    |           |
+---------------------+--------------+--------------------+-----------+
| Total for Others    | 3,583        |                    | 4,958     |
+---------------------+--------------+--------------------+-----------+
| Others not Listed   | 1,047        |                    | 747       |
+---------------------+--------------+--------------------+-----------+
| Grand Total         | 6,323        |                    | 7,225     |
+---------------------+--------------+--------------------+-----------+

**Spanish Exports of Lobster (tons)**

+-------------------------+-------------+----------------+-------------+
| ####                    |             |                |             |
| ### Export Trade Matrix |             |                |             |
+-------------------------+-------------+----------------+-------------+
| Country - Spain         |             |                |             |
+-------------------------+-------------+----------------+-------------+
| Commodity - Lobster     |             |                |             |
+-------------------------+-------------+----------------+-------------+
| Time Period             | CY          | Units:         | Metric Tons |
+-------------------------+-------------+----------------+-------------+
| Exports for:            | 2001        |                | 2002        |
+-------------------------+-------------+----------------+-------------+
| U.S.                    | 0           | U.S.           | 0           |
+-------------------------+-------------+----------------+-------------+
| Others                  |             | Others         |             |
+-------------------------+-------------+----------------+-------------+
| France                  | 1,151       | France         | 1,277       |
+-------------------------+-------------+----------------+-------------+
| Italy                   | 515         | Italy          | 627         |
+-------------------------+-------------+----------------+-------------+
| Portugal                | 349         | Portugal       | 369         |
+-------------------------+-------------+----------------+-------------+
|                         |             | Belgium        | 311         |
+-------------------------+-------------+----------------+-------------+
|                         |             |                |             |
+-------------------------+-------------+----------------+-------------+
|                         |             |                |             |
+-------------------------+-------------+----------------+-------------+
| Total for Others        | 2,015       |                | 2,584       |
+-------------------------+-------------+----------------+-------------+
| Others not Listed       | 127         |                | 99          |
+-------------------------+-------------+----------------+-------------+
| Grand Total             | 2,142       |                | 2,683       |
+-------------------------+-------------+----------------+-------------+

Source: Spanish Customs Office

### Marketing

Spain continues to offer good possibilities for exports of live U.S.
lobsters, especially for affluent, urban consumers. Lobster is
increasingly popular among consumers as an ingredient in paella and as a
luxury food during special events, such as wedding banquets. The ability
to supply a large number of lobsters of the same size and quality is a
key factor in selling to caterers who prepare banquets.

During the summer months, Canadian lobster sells at a premium to U.S.
product. Importers say this is because Canadian regulations restrict
marketing of lobster which has just shed its shell and is still
\"soft.\"

The following are representative prices during the month of April (euros
/kg) of fresh and frozen lobster and Spiny lobster in MercaMadrid
wholesale market:

  ------------------------------------------------------------------------
  **Product**                  **2001**        **2002 2001** **2003**
  ---------------------------- --------------- ------------- -------------
  Spiny Lobster, live          57.10           57.10         57.10

  Lobster, live                19.56           19.43         19.35
  ------------------------------------------------------------------------