The current crop estimate for Spain is 2.2 million MT of fruit vs 3.2 million MT from crop 2021, indicating a decrease of 31%. In the Extremadura region, if sufficient water was to be available for an additional 3,500 HA, the output could potentially increase to a maximum of 2.55 million MT. The lack of water in Extremadura and Andalucia regions remains a challenge for this year, paving the path for better market prices for alternative crops such as corn, or cotton.
Farming costs have risen significantly due to the increase in costs of fertilizers, diesel, and phytosanitary & irrigation tape. The Initial contracting surface in the Extremadura region decreased 23% vs crop 2021 and for Andalusia is a decrease of 63% vs crop 2021.