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.
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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.
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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.
