Interview with Juan Antonio Ballesteros, international director, COVAP

06 Apr Interview with Juan Antonio Ballesteros, international director, COVAP

What key milestones and values have driven COVAP’s success since its founding?

COVAP has undergone remarkable growth over its 66 years of history. It all began in 1959 when 22 farmers came together, driven by the belief that “Unity is strength.” This unity has propelled COVAP to become the largest first-grade cooperative in Spain.

Today, COVAP moves forward by upholding the values of its founders who believed in effort, commitment and humility. Our mission is to ensure the dream and vision of those 22 farmers remain alive, guiding both our board of directors and executive committee. Our differentiation lies in the “360 Model,” which emphasizes traceability and allows us to control the entire value chain. We start with the farmers and extend downstream to agricultural production, managing every stage – livestock, industry, commercialization and final customers. Such cooperative model has earned us recognition both nationally and internationally, including acknowledgment in the MERCO ranking.

Despite our headquarters being located in Pozoblanco, Los Pedroches – a geographically remote area with limited communication access – we have been guided by the values of collaboration, entrepreneurship, integrity and commitment founded by those 22 farmers. If they were to see what we have built today, they would be amazed. Currently, COVAP is present in 30 countries and across Spain. We have 2,000 cooperative members, supported by over 1,000 employees, suppliers and, most importantly, our loyal customers who trust us. We focus on key activities such as dairy, meat and animal feed production. Our goal is to ensure our products are recognized for their quality and the service we provide, all while staying closely tied to their Andalusian origin.

What has driven Andalusia’s rise as Spain’s leading agri-foods exporter?

While Andalusia proudly honors its agricultural heritage, its dynamic evolution proves that Andalusia is a region of the future. The growth of its agri-food sector is a result of several factors. Technological innovation has been key, modernizing livestock operations and improving production efficiency across all species. In agriculture, the integration of AI, drones and digitalization has revolutionized resource management, making farming more precise and sustainable.

Beyond technology, Andalusia’s reputation for differentiated products has set it apart on the global stage. Protected designations of origin add significant value to both crops and livestock, reinforcing the region’s status as a leader in premium agri-food production.

This commitment to excellence has fueled international expansion, with exports increasing significantly, particularly in Asia and the US. As Spain’s third-largest exporter, Andalusia benefits from strong institutional backing, with businesses and government initiatives working together to enhance competitiveness.

What are the most pressing challenges for the Andalusia’s agri-food sector in 2025?

Climate change tops the list, with unpredictable weather conditions – droughts, floods and temperature swings– disrupting production and resource management. Another major challenge is the rising cost of production, which has skyrocketed due to factors such as the war in Ukraine. Market volatility, with fluctuating prices, makes it hard to maintain sustainable operations and pass these costs on to the end consumer.

Then comes generational renewal. Young people are not interested in working in rural areas or agriculture. To attract them, we must make farming profitable and less physically demanding.

Finally, we face global competition and geopolitical complexities. Navigating this landscape requires constant innovation, differentiation and resilience.

What distinguishes Andalusia’s agri-food sector in terms of expertise and potential?

Andalusia has a long tradition and extensive experience in the agri-food sector. This translates into practical knowledge and expertise that have been passed down through generations.

In Andalusia, we are known for producing high-quality raw materials across various sectors, not just meat, but also olive oil, fruits and vegetables. This makes Andalusia a fertile ground for professionals who want to work in the region.

Professionally, the sector is becoming increasingly industrialized. At the same time, Andalusia offers an appealing personal environment – a pleasant place to live. For us, it is essential to unify professional talent with a way of life that promotes both career fulfillment and quality of living.

How is COVAP working to attract and retain talent in this fertile region?

In the Andalusia’s agricultural sector, there is growing interest in innovation and technology, which drives demand for professionals in diverse fields such as biotechnology, food engineering, digitization and sustainability. While this opens up many opportunities, it also makes finding and retaining talent a challenge.

At COVAP, we seek professionals who choose to stay in Andalusia for meaningful, specialized careers. These roles require effort, extensive training and specialized knowledge. For example, our Iberico pork products undergo a lengthy process, taking up to six years to reach consumers. Every person involved in this process must be highly trained.

To address this, we have continuous training programs in place. Education is essential for us. We  collaborate with Andalusian universities to provide training and attract young talent. We want young people to see COVAP as a place where they can contribute and grow.

One of the challenges mentioned before is making careers in the industry attractive to young professionals. To address it we developed an open innovation program called GEN, which connects large companies like COVAP with startups to solve specific challenges. This partnership offers professionals with innovative ideas and limited resources the chance to grow within our ecosystem.

We also launched an intrapreneurship program, allowing employees to propose challenges, actions and innovations that could shape the future of the cooperative. Fresh ideas from outside help us grow, while also offering our employees opportunities to contribute to our evolution.

The goal of GEN and other innovation initiatives is to instill the open-mindedness of our founding members in today’s workforce. We want to remain receptive to external ideas and different perspectives. This innovative spirit has been part of our DNA from the beginning and continues to thrive 60 years later. We adapt to changing circumstances and the world around us. The agricultural sector, despite appearances, is highly digitized and technologically advanced. If you don’t keep up with these innovations, you won’t be competitive.

Focusing on the digitization, what are the key advancements within Andalusia’s agri-food sector today?

The sector is at a crucial moment where innovation and adaptation are fundamental to growth. We see that Andalusia is increasingly becoming a leader at the national level. Sometimes, we think that innovation and digitalization are concepts exclusive to technology companies, but that’s not the case. Technology and digitalization are also reaching livestock farming. Disruptive technologies in the digital sphere are now being introduced at the livestock level, and we’re seeing this expand to agriculture as well. We are applying AI to forecast crop yields and monitor growing seasons. In livestock farming, we are using mobility sensors on animals and robotic milking systems to improve efficiency and ease the workload for farmers. Technologies like GPS track animal movement, improving productivity and profitability while ensuring animal welfare. For example, robotic milking allows animals to be milked naturally at their own pace. Tracking weight helps us anticipate health issues, taking a forward-looking approach while ensuring animal welfare. All our farms are certified according to the highest animal welfare standards.

Another key tool for us is communication between livestock farmers and the cooperative. We developed an application, “CovaApps,” which allows farmers to stay connected with us. Through this app, farmers can access all the information and documentation related to their livestock operations directly from their phones.

The adoption rate for this app has been remarkably high. Even though we still value face-to-face contact, this digital solution has brought much-needed agility to the sector. It’s helping farmers embrace digitalization, even in rural areas. Though older generations may find it challenging to adapt to these digital tools, once they see how user-friendly and beneficial the technology is, engagement increases significantly.

What are some other innovative solutions that COVAP integrates into its operations to further drive progress?

At COVAP, innovation is a core to our DNA. Geographically isolated, we must think differently, innovate beyond products to include technologies that simplify our farmers’ daily work. At the industrial level, we have some of the most automated and productive facilities, not only in Spain but across Europe. Each year, we invest in improving our products and generating value for our farmers, all while adhering to our commitment to sustainability. This includes water and waste management, reducing our carbon footprint and striving to leave a better world behind.

How important is sustainability for Andalusia’s agri-foods producers?

Sustainability is central to the sector. In the past, sustainability was often seen as primarily an environmental issue, related to climate change and responsible products. However, due to challenges such as drought and water scarcity in Andalusia, the concept of sustainability has expanded to ensure the continuity of agricultural and livestock operations.

Today, sustainability is one of the most frequently discussed topics, not just in Andalusia but globally. This is largely because consumers are increasingly seeking responsible products – items that not only provide enjoyment but also come with the assurance that sustainable practices are behind their production. European regulations and policies, such as the Common Agricultural Policy, are driving this shift by enforcing sustainability-related obligations. Andalusian companies, however, are not merely complying with the law. They are going a step further by adding additional value that aligns with consumer expectations.

How is COVAP advancing sustainability?

Sustainability is at the heart of everything we do. We approach it from three perspectives: social sustainability – by improving the quality of life for farmers; economic sustainability – by ensuring that farms and the cooperative as a whole are profitable; environmental sustainability – by protecting our natural resources for future generations.

Our mission, “Caring for the value of our world together,” drives us to leave a better world for future generations. Given that COVAP is based in the Valle de los Pedroches, home to the world’s largest continuous stretch of dehesa pastureland, we are especially committed to preserving this ecosystem and ensuring its long-term sustainability.

To reduce our environmental footprint, we use locally sourced forage, reuse water, adopt renewable energy and incorporate methane-reducing feed supplements. Our industrial processes focus on minimizing energy and water use. Sustainable packaging, such as plant-based cartons and recyclable bottles, is also a priority. COVAP is actively working toward the 2030 Agenda, measuring its carbon footprint and investing in renewable energy. Our soon-to-launch hybrid energy facility will combine biomass, biogas and solar power, covering 80% of our energy needs. By 2025, this initiative will cut CO₂ emissions by 65% (Scope 1 & 2) and, by 2035, by another 30% (Scope 3), aiming for carbon neutrality by 2050.

Additionally, our biogas plant transforms livestock manure into energy, benefiting both farmers and the environment.

How has COVAP’s export strategy evolved, and which markets are key for growth?

Since 2001, when we began exporting, we gradually focused on the internal selection of COVAP products. Initially, we targeted nearby markets, particularly in Europe. In recent years, we’ve seen significant growth in Asian markets due to rising demand for Andalusian and premium products.

For us, North America, especially the United States, is a flagship market for internationalization. The creation of our US subsidiary in 2015 marked an important milestone – it was our first foreign subsidiary. This pilot project established offices in New York and San Francisco, driving growth and leading to a subsidiary in the UK. Looking ahead, we are considering opening a subsidiary in Asia.

In Asia, our main markets are China, Japan, Korea, and Thailand. Currently, China stands out as the economic engine of Asia, though its economy isn’t particularly strong at the moment. We are evaluating various countries, but China remains our primary focus and top candidate for establishing a new subsidiary.

The United States holds special importance for us for several reasons. First, it has an emotional value as our first international subsidiary. Second, economically, it is vital because we export Iberico pork products there, particularly our star product—the 100% acorn-fed Iberico ham—along with other derivatives.

In January 2025, we achieved a significant milestone by obtaining U.S. government approval to export our lamb products. Only two Spanish companies have secured this approval. We hope that 2025 will mark the beginning of stronger commercial ties between Spain and the US, with this new product meeting American consumer demand.

What makes the US market uniquely important for COVAP? 

The US market serves as a hub for innovation. Many of the innovations within our cooperative have been inspired by ideas and trends emerging from it. What happens in the US often replicates in Europe and, later, in Asia. This makes the US a strategic market for us, not just due to its population size but also because of the growing interest in Spanish and Andalusian products.

Looking forward, we’re excited to introduce a new product category to the US. Currently, lamb consumption in the US mostly involves Australian and New Zealand products. We believe our differentiated product, with its unique qualities, will be well-received and successful in this market.

What is COVAP’s long-term vision for the cooperative? 

My main priority is to add value to both the cooperative and the international market. At COVAP, we don’t just sell products – we sell experiences. This needs to be reflected as added value across the entire chain, including livestock farming, which must be sustainable.

The second priority is enhancing brand recognition. We must not only offer a quality product but also convey warmth and connection. Our goal is for international consumers, whether in the US, Europe, Central America or Asia, to feel identified with our values and enjoy a transformative gastronomic experience.

Brand recognition is essential, as is being seen as an Andalusian and cooperative brand. And, of course, growth is key. We are committed to growth, not just in volume and economic performance, but, most importantly, in terms of value. We aren’t focused on being in as many countries as possible; rather, we want to be sought after and recognized wherever we are present. We want consumers to associate the COVAP brand with guaranteed quality and Spanish authenticity.

Our long-term vision for the livestock sector within the cooperative is to continue striving for sustainability on all fronts. This includes innovation in product, packaging and across the entire value chain.

In short, sustainability, internationalization and innovation are our top priorities. I believe we are on the right path. The Andalusian food industry is making great strides, although there are socio-economic factors that can be unpredictable. Uncertainty is a word that defines the current landscape, but we must focus not on worrying, but on taking action.