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Concern about the sharp increase in costs that will mark the fruit and vegetable campaign

The escalation of costs affects each and every one of the production processes of horticultural companies. The costs of inputs for cultivation, such as fertilizers, energy, water, plastics and derivatives for packaging, materials used for the construction and renovation of greenhouses, transport, etc. have been continuously increasing throughout this year, especially since March.

According to the Coexphal Assembly, which was held on October 1, last season, production costs in Almeria increased by an estimated 5% to 7%, depending on the type of crop.

In Murcia, the broccoli sector has reported a 25% growth in costs for this season that begins. What's worse is that nobody knows how or when this price increase will end, which makes it very difficult to establish plans in the long term, according to the president of Proexport's broccoli and cauliflower sector, Juan Manuel Ruiz.

This has also led to a delay in the investments that were already programmed, stated Ana Hernandez, head of R+D+i in the Hortofrutícola Paloma group's Production Department. The price of the materials used for the construction and renovation of greenhouses, mainly plastic and metals such as steel or iron, have increased as a whole by 50% so far this year, which leads to a delay or paralysis of the reforms and planned investments.

According to Fepex, the fruit and vegetable sector's productive activity is being affected by the general increase in input costs and by the increase in labor costs after the minimum interprofessional wage was increased in September. This translates into higher production costs that can hardly be transferred to final prices, given the limited bargaining power of the majority of the sector.



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