Judit Montoriol

The outbreak of the war in Ukraine has overshadowed the positive outlook that we anticipated for this 2022. It is still early to know the scope and repercussion of the conflict on the Spanish economy and the agri-food sector in particular, but in the short term the main channel of impact is the rise in energy.

It can be said that it never rains, but it pours. In 2021, the agri-food sector was already heavily pressured by rising production costs. The conflict in Ukraine represents a new energy shock and will delay the normalization of global value chains. In addition, the sector could be affected by a possible shortage of certain inputs from the “breadbasket of Europe”.

Expectations are placed on the NGEU funds, which should be a catalyst for investment in innovation and digital transformation, and this will help consolidate the high international competitiveness enjoyed by the Spanish agri-food sector.