Spain Enacts Decree to Bolster Agro-Food Ties with Asia
Spain's government has approved Real Decreto 128/2026, a measure aimed at bolstering its agro-food strategy and regulatory cooperation with key Asian partners including Japan, South Korea, and Indonesia. The decree reinforces the need for mutual recognition of standards and documentation. This move highlights the increasing importance of streamlined compliance for exporters targeting the EU market.
- India, the world's largest rice supplier, officially lifted its final export restrictions on 100% broken rice on March 7, 2025, after ending a ban on non-basmati white rice in late 2024. This policy shift has sharply increased global supply, contributing to a 38-45% drop in prices for 5% broken rice from Vietnam and Thailand between late 2024 and early 2025. - The European Union is preparing a new safeguard mechanism, expected to take effect January 1, 2027, to protect its domestic rice industry from rising imports. The Federation of European Rice Millers (FERM) is advocating for higher tariffs on milled and packaged rice to encourage the import of raw paddy, shifting value-added processing to Europe. - Demand for premium and sustainable rice is growing in Europe, with the market projected to reach USD 1,002.62 million by 2033. A survey of EU retailers revealed over 90% prioritize sustainable sourcing, and nearly 90% of industry actors believe consumers are willing to pay a premium for rice with sustainability certifications like the Sustainable Rice Platform (SRP). - The global organic rice market is projected to grow at a CAGR of 8% between 2025 and 2033, driven by European consumer demand for health and sustainability. The European organic food market is expected to reach €50 billion, creating significant opportunities for certified organic rice exporters. - All food imports into the EU must comply with strict traceability laws under Regulation (EC) 178/2002. This requires exporters to have systems that can identify the immediate supplier and subsequent consignee ("one step back-one step forward"), with documentation to trace products through all stages of production and distribution. - Currency exchange rate forecasts for 2026 indicate potential volatility for the Thai baht against the euro. Projections vary, with some analysts predicting a softer baht at around €0.0255, while others forecast a range up to €0.0280, impacting export pricing strategies and profit margins. - While Spain is strengthening ties with Japan and South Korea, its fourth and second-largest Asian agro-food export markets respectively, Vietnam is facing increased competition. Vietnam's 2025 rice exports saw a decline in value, and the country anticipates exporting 7.73 million tons in 2026 amid pressure from India's market re-entry and a forecast global supply surplus.
