Citrus Producers Push for Tougher Terms in European Sales Contracts

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Citrus producers are demanding a major shift in commercial sales terms to boost income and, above all, protect their profits from ongoing activity costs. Negotiations are taking place with input from the Ministry of Agriculture, which has floated proposals, yet no formal agreement has emerged. In a show of pressure, farmers have blocked the restart of European promotional campaigns for oranges and tangerines.

Carmine growers have voiced long-standing concerns about the prices they receive for their harvests. A telling example is the current lemon season, which is expected to yield around 100,000 tonnes sent to industry for just three cents per kilogram. Prices to supermarkets are likewise unattractive, hovering around 20 cents per kilo and barely covering production costs.

In response, the alliance represented by Asaja, UPA and Coag has called for negotiations with trade and exporter representatives to rethink the existing contract model. The aim is to drive a cultural shift in business relationships. As Asaja’s technical secretary Ramón Espinosa explains, there is a push to eliminate the so-called lion contracts that leave farmers unprofitable. He notes that prices should be set at origin and not altered later in the chain, after citrus is weighed in the field or once it reaches warehouses and is deemed the wrong size. The group also demands that value-added tax be calculated separately rather than folded into the price. A central demand is the ability to pass on rising production costs and the obligation to comply with the Food Chain Law, which bars selling at a loss.

These issues formed the core of a Thursday meeting that brought together both sides within Intercitrus, along with Minister of Agriculture José Luis Aguirre acting as an intermediary. Despite the discussions, core positions remain distant, and the pressure continues to mount. The farmers, who hold the leverage to veto promotional campaigns, insist on fair trade foundations as a precondition for any marketing effort. Espinosa stresses that the goal is to revive campaigns to boost consumption, but only under equitable trading terms.

Nonetheless, this stand complicates the stance of the Citrus Management Committee, which represents private exporters and agri-food cooperatives. The committee has pressed for enterprises and cooperatives to fully cover the co-financing of EU incentives, potentially relieving producers of payments for the first time. They warn that the current veto could deprive the Spanish citrus sector of substantial annual support. In a climate where orange and tangerine consumption is slipping and foreign supply remains competitive, reactivating EU promotions is deemed essential.

Within the sector, Intercitrus has signaled a plan to push for stronger EU pest-control measures. The integrated association of producers, traders and exporters agreed with Agriculture Minister Aguirre to form a lobby aimed at pressuring the European Union to tighten pest control on imported citrus. The group also seeks parity for imported fruits with European-grown products, ensuring competing standards and safeguards are aligned across borders.

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