Citrus producers demand radical changes in the terms of commercial sales contractsTo increase your income and, above all, to avoid losing money due to your activity. Both sides are negotiating through the Ministry of Agriculture, which has proposed it, although no agreement has been reached at this time. And that has consequences, given that, as a measure of pressure, Farmers veto restart of European promotional campaigns for oranges and tangerines.
Citrus growers have been complaining about the prices they receive for their products for a while. An example of this is the current lemon campaign, which will collect around 100,000 tonnes sent to industry for only three cents per kilo paid. But the prices for those going to supermarkets aren’t very good either, as the approximately 20 cents paid barely covers production costs.
Therefore, the group represented by Asaja, UPA and Coag proposed a negotiation with trade and exporter representatives with a view to changing the current contract model. The aim, in a sense, is to create a cultural change in business relations, as Asaja’s technical secretary Ramón Espinosa explains: “Elimination of existing lion contracts that leave farmers unprofitable”.
He emphasizes that one of the demands is for prices to be set at origin, “and not like now, after weighing the citrus in the field, then when they arrive at the warehouses we see changes because they decide that some fruits are not the appropriate size, which is something we cannot approve.” They demand that VAT, which is “included in the price”, be collected separately, “not like now”, said the representative of Asaja. Another claim, perhaps the most important, is this: Farmers have the opportunity to pass on increases in production costs. Added to all this is the requirement to comply with the Food Chain Law, under which it cannot be sold at a loss.
All these issues were discussed at a meeting on Thursday, in which both parties integrated into Intercitrus were present, as well as Minister of Agriculture José Luis Aguirre, who acted as an intermediary. But the positions are still far apartIt prevents the resumption of promotional campaigns for oranges and tangerines, as farmers vetoed this initiative as a pressure measure. “We – explains Ramón Espinosa – are interested in running these campaigns to reactivate consumption, but always on the basis of fair trade relations.”
But this is a big mistake for the Citrus Management Committee, which represents private exporters and agri-food cooperatives. And, as they noted, this committee agreed that operators, that is, enterprises and cooperatives, should fully undertake the co-financing of these incentives with European funds, thus exempting producers from any payments for the first time. After underlining that this veto would deprive the Spanish citrus industry of millions of dollars in annual aid, they emphasize: In an environment where orange and tangerine consumption is decreasing and competitiveness against foreign supply is present, it is necessary to reactivate promotions in the EU..
Lobby the EU to strengthen pest control
Intercitrus, the integrated association of producers, trade and exporters, agreed yesterday with Agriculture Minister José Luis Aguirre to form a lobby to pressure the European Union (EU) to tighten pest control on citrus fruits imported. They will also demand that these products be subject to the same conditions as those grown in Europe.