INTEROVIC has warned of the potential impact on the European sector of the free trade agreement currently being negotiated between the European Union and Australia. According to the interprofessional organization, the proposal to significantly increase the quota for Australian sheep meat imports could jeopardize the viability of thousands of extensive livestock farms in Europe, and especially in Spain.
The main cause for concern is the volume of product that Australia plans to introduce into the European market. Currently, the European Union imports approximately 5,851 tons of sheep and goat meat from Australia, but within the framework of the trade negotiations, the island nation has requested an increase in this quota to 67,000 tons.
According to Raúl Muñiz, president of INTEROVIC, this figure would represent an eleven-fold increase in current access to the European market and could generate significant pressure on EU production.
In market terms, this volume would represent approximately 11% of total sheep meat consumption in the European Union, meaning the entry of some 3.35 million additional lambs into the EU market.
Impact on Rural Areas
INTEROVIC emphasizes that the impact of this measure is not limited to commercial figures. Behind every sheep farm lies a production model linked to the land and the preservation of rural life.
Extensive sheep and goat farming is particularly prevalent in the dehesas (pasturelands) of southwestern Spain, mountain pastures, and traditional grazing systems, which are integral to the landscape and the rural economy.
Considering that an average extensive farm uses around 70 hectares of pasture, the territorial impact of increased competition could affect up to 770,000 hectares of livestock land, an area equivalent to three times the size of Luxembourg.
Unequal Competition
Another concern for the sector is the difference in production costs between the two markets.
Lamb from Australia reaches the European market with an estimated cost of between €6.5 and €7 per kilogram carcass weight, while the average price in Europe is around €9 per kilogram.
This difference, close to 30%, could directly affect the profitability of European farms.
All of this is occurring within a context of structural decline in the sector. In 2024, the European Union had 56.5 million sheep, approximately 10% fewer than a decade ago.
In the case of Spain, the sheep population has also registered a significant drop: more than 500,000 fewer sheep in a single year, representing a reduction of nearly 10% in the national census.
Among the main factors explaining this situation are the increase in production costs, the difficulty in maintaining farm profitability, and the lack of generational succession, one of the main challenges for the sector’s future.
More than just production: an environmental service
INTEROVIC also points out that extensive livestock farming fulfills a function that goes far beyond food production.
Grazing systems contribute to landscape maintenance, help prevent forest fires through the consumption of plant biomass, promote biodiversity, and sustain economic activity in numerous rural municipalities.
For this reason, the interprofessional organization considers it essential that the sheep sector be recognized as a sensitive sector in international trade negotiations.
“Trade decisions cannot ignore its impact on the land or on the thousands of farms that keep rural areas alive, in addition to contributing to fire prevention,” says Raúl Muñiz.
In this context, INTEROVIC requests that the Government of Spain defend in Brussels a position that takes into account the strategic role of the sheep and goat sector for the environmental, social and economic balance of the European rural environment.
