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"The crisis is caused by the globalization of the community market and the imbalance of supply"

The Spanish Federation of Fruit and Vegetable Exporters' Associations (FEPEX) stated at a meeting held on Thursday, February 13 by the Minister of Agriculture, Fisheries and Food, Luis Planas, with representatives of the fruit and vegetable sector that the current crisis in this sector, which represents half of the vegetable production in Spain and almost a third of the value of agricultural production, with a value in origin of 15,700 million euro, was due to the globalization of the community market and the imbalance of the commercialized supply.

According to FEPEX, the globalization of the community market, to which Spain destines 94% of its exports and where the sector competes with third countries that have less demanding production and marketing conditions than the community ones, is one of the causes of the current crisis. Especially taking into account that, as mentioned by the Ministry of Agriculture, foreign sales represent more than 50% of Spanish fruit and vegetable production.

FEPEX also stated that the imbalance of the commercialized supply was another cause of the crisis, considering that the creation of associations of producer organizations are of particular importance to balance supply and demand of Markets since these structures, contemplated in the Common Organization (OCM), have three basic functions: planning the production, the marketable supply, and crisis management, applying, if necessary, exceptions to the competition rules set forth in the CMO, as explained by the director of FEPEX, Jose Maria Pozancos.

The president of FEPEX, Jorge Brotons, also said that the fruit and vegetable producer and export sector needs to improve its competitiveness because costs continue to rise and it is necessary to deepen an investment policy. These investments have to focus, among other aspects, on modernizing the sector or varietal reconversion, but the support of the administrations is also needed to do this.



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