Alicante’s Mediterranean Nurseries Power Global Growth Amid Cost Pressures

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Plants and trees from Alicante flourish across the world, sustaining nurseries in the region and driving a resilient export economy despite rising costs and a tightening national market. Ornamental horticulture exports have climbed by about 80% over the past decade, a trend fueled by a focus on quality and solid crop yields. Even so, inflation and adjustments to the Tajo-Segura water transfer could threaten the long-term viability of some companies.

The ornamental horticulture sector is often misperceived as secondary to traditional farming. In reality, its production value and export earnings frequently exceed many other agricultural sectors. In the last decade, Spain has emerged as a leading force in Europe for sales of flowers, plants, and trees, ranking second only to Germany in growth after the period analyzed, underscoring strong European market potential.

Locally, Alicante shows even stronger performance. In 2021 exports reached 62.3 million euros, up from 39.5 million the prior year, marking a rise of more than 50% and placing the province second in Spain behind Valencia. Nurseries in Alicante account for about 11% of the country’s total horticultural exports, highlighting the region’s significant role in national trade.

Forty Countries

Exports are crucial for the province’s sapling industry, and the reach is broad. About 85% of flowers, plants, and trees grown in Alicante cross borders, serving markets in more than 40 countries. The European Union remains the main destination, with buyers in France, the Netherlands, Portugal, Germany, Italy, the United Kingdom, and Belgium. Growing importance is also seen in Asia and the Middle East, with Japan, China, South Africa, and the United Arab Emirates becoming increasingly relevant.

Alicante nurseries specialize in Mediterranean species, including olive and palm trees, meeting demands from large retailers, garden centers, and wholesale distributors. Investments in logistics and innovative formats help ensure rapid distribution worldwide. Companies also emphasize training and professional development to deliver top-quality products.

Most of the sector operates under the Association of Nursery Crops Producers, known as VAME. Its work centers on boosting competitiveness, coordinating member participation in international fairs, and facilitating business missions to discover new technologies and markets that strengthen partner export potential.

Water tanks and irrigation systems are visible in many nurseries, illustrating the emphasis on efficient resource use across the Camp d’Elx area. This practical approach supports sustained growth in a challenging environment.

Viewed together, the internationalization effort has helped growers weather a period of economic disruption. Paco Agulló, head of VAME and owner of Viveros Planta Viva, notes that a shift observed after the worst of the pandemic has brought a strong export surge as people invest in greenery at home and in gardens, partly to compensate for reduced outdoor activity. That momentum carried into the following year, even as general domestic demand leveled off.

Nevertheless, the market has cooled somewhat, with steady foreign sales continuing to rise but at a slower pace, around 7%. Agulló points out that rising costs have weighed on the sector: phytosanitary products and fertilizers have surged in price, and diesel and plastics costs have climbed. He emphasizes that these increases would not be absorbed by factories without eroding international competitiveness, making exports even more vital for the sector’s health.

Transfers and Uncertainty

A persistent concern is the ongoing debate over the Tajo-Segura transfer and the potential cuts to shipments. Camp d’Elx and Vega Baja nurseries rely heavily on this water supply, and reductions could force farmers to reduce cultivated areas, threatening the viability of many businesses. The uncertainty extends to future planting plans, as the year-by-year political climate adds a layer of unpredictability.

José Luis Maciá of Viveros Ferriol echoes the sentiment: overall sales remain stable, but costs have risen sharply along the entire supply chain, from raw materials to shipping. Exports remain a critical driver for the sector, with domestic sales carrying less weight. He also warns that desalinated water would add substantial costs, compounding financial pressure.

Irineo López of Viveros Iris stresses that a cost squeeze is real. Prices have risen, yet buyers continue to purchase. The key concern remains water, where self-contained reservoir systems help mitigate risk, but the long-term outlook depends on stable water access and affordable treatment options.

The industry seeks sustained governmental support to broaden its international footprint. The national federation highlights solid foreign trade results achieved with limited policy assistance, signaling a need for broader administration-backed export initiatives. Expanding participation of more companies in export activity and easing dissemination of Spanish horticultural offerings are seen as essential to future growth.

Labor remains a bottleneck. Irineo López notes a general shortage of agricultural workers, including skilled engineers. The industry faces a paradox: physical labor is undervalued, even as gym memberships rise—an ironic mismatch that complicates recruitment in horticulture.

The sector remains committed to growth while navigating cost pressures and political uncertainty. The push to diversify markets and strengthen supply chains continues, with a clear message: continued support and strategic investment are vital to maintaining Alicante’s leadership in Mediterranean horticulture and securing its long-term market footprint in North America and beyond.

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