Determinants of Corn Import Demand: Spain

摘要

The main deteriminants of Spanish demand for imported corn are Spain's adherenceto the European Communities (EC's) Common Agricultural Policy (CAP) and the U.S. -EC Enlargement Agreement. Spain's adoption of the CAP raised corn prices, leading livestock producers to substitute less expensive feed ingredients, and increased protection from imports. Spain's entry into the EC resulted in slightly higher domestic corn production, lower imports, and lower consumption. The Enlargement Agreement requires Spain to import 2.3 million tons per year of corn and other feed ingredients. Quality considerations are secondary to agricultural policy in determining the quantity and source of Spain's corn imports. The new CAP for grains will reduce Spanish corn production.