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Spain's Citrus Farmers Up in Arms Over Low Prices

Source: Reuters
05/12/2006

Madrid, Dec 5 - Spain's citrus fruit growers say low prices are forcing them out of business and are asking the government to mediate between them and food companies, farm union spokesmen said on Tuesday.

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Farmers say they will stop harvesting and selling on December 14 and 15 in a bid to draw attention to the crisis in the sector.

On Tuesday farm unions and regional government representatives were meeting agriculture ministry officials to plead their case.

"In the last week, mandarin prices have dropped again to 0.06 euros a kg, which doesn't even cover costs," said a spokesman for the Small Farmers' Union UPA. Unions say retail prices are 800 to 1,000 percent more than the price paid to farmers.

Farmers, even if they join up as cooperatives, are powerless to negotiate with the big food distributors and have to take whatever price is offered, unions say.

"We want the ministry to curb distribution margins and allow farm prices to rise. Otherwise the industry faces an unprecedented crisis," the UPA spokesman said.

Ministry data show lemon prices fell 12 percent in the fourth week of November alone to 0.15 euros a kg on the farm. The retail price that week was 1.38 euros a kg.

European Union fruit growers face stiff competition from producers like Chile and South Africa. Spain is also particularly vulnerable to competition from North Africa. Farmers say fruit production is expanding in countries like Tunisia and Morocco.

Spain's fruit industry is worth more than 6 billion euros ($8 billion) a year, Agriculture Ministry figures show. Unlike grain farmers, fruit and vegetable growers do not receive EU subsidies.

Spain's citrus fruit production is typically around 6 million tonnes a year.



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