The role of the agrofood industry in regional development in Spain Consequences of integration into the EC

Abstract

This paper analyses the contribution of food processing industries in Spanish regional development. The agrofood industry is one of the most important industrial sectors in Spain and, in recent year, it has been an important component in the development of rural areas. Factors affecting the location of bod industries and changes taking place after accession to the European Community (EC) are analysed. The entry of Spain into the EC has brought about a change in the food industries relative growth in Spanish regions. Before joining the EC, the agrofood industry experienced the highest growth in the most developed regions, close to big consumption markets. After the Spanish entry into the EC, more investments have been taking place in regions where the rural sector plays an important role, trying to compensate for farmers' losses owing to decreasing agricultural prices as a consequence of the Common Agricultural Policy reform.