The Spanish government is expected to unveil a EUR3bn (US$3.78bn) aid package designed to provide a boost for its faltering food sector, industry lobby FIAB has said.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Under the plan, EUR1bn of financing aid will be provided every year until 2012 through state credit institute ICO’s credit lines.
“We have been struggling with high debt for a long time and now that there’s a recession, small companies need as much help as possible to export and grow,” a spokesperson for industry lobby FIAB told just-food yesterday (16 January). “We hope to get this aid as soon as possible.”
Consumption is plummeting across Spain and the economy is expected to contract 1.7% in 2009 after 15 years of stellar growth.
Nevertheless, the Spanish food industry clocked EUR80bn in sales last year, up 2.5% against 2007.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataWhile domestic demand is in decline, the FAIB spokesperson said that the industry is somewhat buffered from recession: “People continue to eat and this is not a cyclical sector,” she said.
The spokesperson added that a 15% export rise from January to October last year helped boost sales as the world continued to buy Spanish staples such as olive oil and Serrano jam.
