Changing Times in the Spanish Beef Market
SPAIN - When it comes to the market for beef in Spain, the economic environment, consumer lifestyles and trends tend to shape consumer decision making, according to the Bord Bia Madrid Manager, Cecilia Ruiz.
22 June 2009
2 minute read
The global economic crisis has had a clear effect on consumer behaviour. As the number of visits to the supermarket increases, total spending decreases, consumers become more price/“bargain” driven, more open-minded, less faithful to a specific brand, product line or retailer.
In all 62.3 per cent of beef consumers plan their beef purchase before leaving home... "but how many change their choice when facing the offer at the point of sale?" says Ms Ruiz.
Fifty per cent of beef sales in Spain are still via traditional butchers as they appeal to consumers by offering personal advice and the perception trust and fresher products on offer.
However, butcher shops are disappearing due to a lack of interest in taking over the family business, or the means to get the resources to start/buy a business.
Their continues to be a strong consumer preference for domestic beef although the willingness to pay more for domestic beef is not clear.
Retailers want to offer Spanish beef, but how much are they prepare to lose in their margins to offer it at an attractive price? In many cases, Spanish intensive production system can not compete with imported product.
Spain is self sufficient in beef although it is foreseeable that due to lack of profitability the sector may not continue to be self sufficient over the medium term.
It is the goal of both Bord Bia and the Irish industry to develop demand for Irish beef, secure retail business and grow our market presence at the same pace as the need for imported product grows.
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