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Spain: Traders under pressure from large retailers due to prices

"The big supermarket chains are putting so much pressure on us, that we are forced to buy goods from different sources in order to have some profitability," explains Juan Mellado, head of Mer&Car. That is why Spanish companies are looking for oranges of sizes 5, 6, 7 and 8 (those used for self-service juicers) outside the country's borders, to be able to adhere to the agreements signed early in the campaign.



"In our case, we have turned to Morocco, where we pay between 0.39 and 0.40 Euro per 15 kg box," explains Mellado. Another origin that Spanish exporters and traders are choosing is South Africa, leaving Brazil this year out of the game, because "their citrus fruits are suffering the impact of a disease," states Mellado. "The pressure on prices is such that we had an agreement of 6 million kilos per week and we are not even reaching 100,000 kilos; it is almost impossible for a commercial move to be made without losing money."


For more information: 
Juan Mellado Carrera
Mer&Ca.
Tel.: +34 633 468 243


Publication date: 7/17/2017


 


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