The rise of Spain as a destination for Dutch piglets began at the end of 2017. The need to import foreign piglets increased because the production of slaughter pigs in this southern European country traditionally precedes expansion in sow farming. Historically, Spanish integrations in particular have phased out their need for foreign piglets over a few years.

“This development cycle to restore balance has been disrupted by various factors,” notes VAEX CEO Dirk Govers. “Animal diseases, efforts to reduce antibiotic use, and declining public support for the pig sector in Spain have all had an impact. That’s why, in recent years, Spain has become the most important market for the structural placement of Dutch piglets.”

This view largely aligns with that of pig economist Robert Hoste of Wageningen Economic Research. “Another factor is the disappointing export of Spanish pork to China. The Chinese quickly recovered from the impact of African swine fever on pork production, which reduced demand on the world market. This has also contributed to the stalling growth engine in Spain.”

Animal health

Reduced animal health has plagued the Spanish pig sector in recent years. The country has seen the introduction of several highly pathogenic PRRS virus variants.

“Vaccines have been developed against Porcine Reproductive and Respiratory Syndrome (PRRS), but they are ineffective against the Bisbal and Rosalia strains. Sow farms where these strains circulate suffer significant losses of piglets, and the piglets that are raised with more effort also perform worse as slaughter pigs,” says Govers.

“The only thing that works is depop-repop: removing all sows and piglets, thoroughly cleaning and disinfecting the farm, and starting again with healthy sows. That costs a lot of money and time, and as a result, the number of productive sows in Spain has dropped,” the VAEX CEO explains.

In 2022, according to Eurostat figures, Spain had about 20,000 fewer sows than in 2021. That quickly translates to a shortfall of around 560,000 piglets per year.

Not all Spanish sow farms choose depop-repop and must deal with lagging technical results. Both the numbers and quality of piglets are lower, resulting in Spanish slaughter pig producers facing less uniform batches and disappointing animal performance.

Govers expects it will take the Spanish several more years to get this animal disease under control. “Moreover, there is great fear of introducing African swine fever. Hygiene requirements on Spanish pig farms have been tightened. Import of piglets is also being checked more strictly.” 

Farm management

Another factor putting pressure on domestic pig production in Spain, according to Govers and Hoste, is the European ban on the medicinal use of zinc and the restriction of medicine use. “Mistakes in the management of pig farms can no longer be easily corrected by using antibiotics,” they state. “Improving expertise also takes time and involves trial and error.”

An important aspect that could make Spain a structural importer of piglets in the long term is the declining public support for more pigs. “Obtaining permits for new farms is becoming increasingly difficult and is putting the development of the Spanish pig sector on hold,” says the VAEX CEO. “Filling planned expansions also faces resistance.”

On the other hand, according to Hoste, there is considerable overcapacity in the Spanish meat industry. “From the processing side, there is therefore a structural large demand for slaughter pigs. This also creates a need for piglets.”

The strength of the Spanish pig sector is the relatively low building costs and scale. Govers: “By building simple barns, Spaniards accept that they achieve average technical results. They focus on volume production.”

Still, there is a visible shift toward sustainability and more animal welfare in this area as well. “Especially Spanish sow farms are investing in better and more spacious barns to eventually stop tail docking. Staffing is also becoming an increasing bottleneck, which is why extra attention is being paid to making work easier and more efficient,” notes Hoste.

Govers: “For Dutch sow farmers, this again offers opportunities if they can supply good piglets with intact tails.”

Remarks and risks

For exporters of Dutch piglets to Spain, not everything is smooth sailing in the medium and long term. “Europe is working on new guidelines for long-distance animal transport. At the moment, it is unclear what impact this will have on the export of piglets from the Netherlands,” says Govers. “Also, being allowed to transport piglets at high outside temperatures is still surrounded by uncertainties. This could threaten the ability to serve this attractive sales market year-round.”

The shrinking of sow farming in the Netherlands, Germany, and Denmark could also affect the Spanish pig sector. Govers and Hoste expect that total piglet production will decrease, making fewer piglets available for export markets. Sow farms must also be large enough to supply big batches. In addition, the location of the exporting breeding farm is important to get the piglets into Spanish barns within a day.

“Spanish integrations will have to pay at the level of Germany to continue attracting Dutch piglets. But if you make agreements with Spanish buyers, you can count on them to keep their word. To maintain continuity in sales, it is necessary to supply healthy non-castrated piglets and gilts with a Piétrain as terminal boar,” says Govers. “Nowadays, the piglets from the best sow farms in the Netherlands go to Spain. It used to be the other way around. The Spanish pork sector is moving toward a quality market.”