Spain is groaning under a glut of ham after Christmas sales of one its most celebrated products plummeted with a crash in demand for traditional gift hampers.

The nation's top hams - the world-renowned jamon Iberico - were traditionally given away in corporate gift hampers to employees and favoured clients but the practice greatly diminished this season as companies struggle to survive the recession.

The industry estimate sales of the traditional cured leg of Iberian pig could be down as much as 20 per cent during the festive season, a period which usually accounts for more than 60 per cent of annual revenue for ham producers.