Alicante Exports Hold Steady Amid Agricultural Pressure and Market Shifts

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Exports from the Alicante region continue to grow, even as a traditionally strategic sector like agriculture shows early signs of weakness. The drop in fruit and vegetable output due to drought and adverse weather has not stopped foreign sales from rising by almost 20 percent in January, reaching 605 million euros compared with the same month a year earlier. The strong momentum in other industries such as footwear, plastics, and metals has been crucial in sustaining overall export growth, even as textiles and toys falter at the start of the year.

The latest export data from the Ministry of Industry, Trade and Tourism begins to reflect the broader decline in both vegetable and fruit production across Alicante. Several factors feed this trend, foremost the water shortage. Although further reductions to the Tagus-Segura transfer have not yet materialized, cutting measures during the months leading up to planting caused many farmers to shrink their crop areas. Meteorological setbacks followed, with harvests falling by around 40 percent, a trend that is already impacting exports.

José Vicente Andreu, president of Asaja-Alicante, notes that citrus production also declined and points to intensified competition from third countries, which tend to win on price while failing to meet local quality standards. This combination of pressures helped produce stagnation in one of Alicante’s main export sectors, which had enjoyed a strong ascent previously. In January, exports of legumes and vegetables reached 60.8 million euros, just two million more than a year ago, while fruit and vegetables stayed near 52 million. The most affected crops included tomatoes, lettuce, clementines, and tangerines. Andreu predicts a similar trend in the coming months, as production numbers show little improvement. There is some relief, however, in the agri-food segment from canned vegetables and fruits, which rose from 15.1 million to 22.3 million euros.

Other sectors that weakened at the start of the year were toys and textiles. Exports in toys slipped from 7.6 million euros a year ago to 5.8 million currently. José Antonio Pastor, director of the Spanish Association of Toy Manufacturers (AEFJ), emphasized that even with a positive year-end, overall export growth was weaker than expected, with a year-over-year gain around 1.7 percent. This sector now focuses on recapturing momentum in the last quarter as turnover concentrates there.

Home textiles, primarily produced by provincial companies, decreased from 3 million to 2.8 million euros. By late 2022, early signs of weakness appeared, making it one of the sectors most affected by rising energy costs. Pepe Serna, president of the Ateval regional employers’ association, notes that many companies, especially those finishing goods, are still grappling with the inflationary environment. He adds that their products are not essential in difficult economic times, which compounds the challenge for the industry.

Water scarcity continues to limit vegetable production in the province, which has repercussions beyond regional borders and has sparked concerns about food supply across parts of Europe. Yet foreign sales in Alicante have managed to maintain an upward trajectory, driven by sectors with substantial regional weight. The footwear industry, which endured the worst Covid impacts and is now showing strong recovery, recorded 126 million euros in January, up from 100 million the previous year. Plastic exports also advanced, reaching 36.9 million euros, six million more than last year. In metals, gains were broad-based: aluminum products rose from 24.7 million to 28.7 million, and electrical appliances and components increased from 15.9 to 22.6 million euros.

On the import side, purchases also rose but at a slower pace than exports, totaling 486.8 million euros, up 6.8 percent. Overall, the province continues to diversify its export base, with growth led by non-agricultural sectors while agriculture remains pressured by climate and water constraints. The ongoing adjustments in farming—particularly in crops dependent on irrigation—signal a transitional period, as producers adapt to new weather patterns and evolving global competition. In the meantime, downstream industries and processed products offer a stabilizing counterweight, helping Alicante sustain a healthy trade balance despite agricultural headwinds.

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