COAG-Spain: “ reform of the CMO will reduce producer prices”

Tholen – The Coordination of Agricultural Producers in Spain (COAG) declared that the current proposal of the Common Market Organization (CMO) of fruits and vegetables will result in a re-assignation of investments to products with better rents and a falling on producer prices. According to Miguel López, President of the COAG, the only beneficiaries of the reform will be distributors and market chains who are characterized for the speculation in situations of crisis.

The main concerns of the COAG are the decoupling of production aids (from the reform on, they will depend on the cultivated area) and the non-productive areas which would receive aid to cultivate fruits and vegetables. According to Mr. López, the reform could affect 40% of exporting fresh produce and 1.5 million of working people on this sector. The COAG proposes that decoupling begins in 2012 and that the CMO avoids the new areas for cultivation.

Publication date: March 30 2007
Author: Jahir Lombana
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