In a business meeting held with the president of the Government of Valencia, Ximo Puig, which was organized by the president of the Council of Chambers of the Region of Valencia, José Vicente Morata, it was confirmed that the Valencian government plans to ask the Spanish Ministry of Agriculture to improve the compensations to kaki producers for the losses generated as a result of the political conflict with Russia.
It is now five years since the Russian veto on the import of all types of agro-food products from the European Union came into force, taking a huge toll on Valencian citrus growers and kaki producers, since the veto came when the Russian market had become a primary area of expansion for Valencian fruit and vegetable products.
As a result of the veto, Valencia's traditional competitors in the Mediterranean arc, namely Morocco, Egypt, Turkey and Tunisia, took advantage of the gap left by European products to penetrate the Russian market.
A third problem was added to all this: a saturation of the supply in the European market, with a multitude of citrus fruits and vegetables from countless countries. In the opinion of the agricultural producers, this is one of the main reasons for the collapse of prices.
Sources of Valencia's Council of Agriculture explained that the Common Agricultural Policy (CAP) includes a mechanism for economic aid to producers: the so-called crisis management funds. Valencian agriculture could claim them in compensation for the losses of the Russian veto. The problem is that the figures are so low that, depending on the sector, it is often not worth it.
From the beginning, the Valencian government has tried to stand behind the producers. So now, given the impossibility of a prompt political solution, the central Government is being asked to find ways to increase the amount of aid, so that the compensation is worth it.
Exports grow in the first half of the year
Agro-food exports from the Region of Valencia have grown by 2.4% between January and June 2019, according to the Council of Agriculture. The shipments, with an economic value of 3,319 million Euro, account for 20.5% of Valencia's total exports during the first half of the year.
Germany, France, Italy, the United Kingdom and the Netherlands receive almost 60% of the shipments, although there has been significant interannual growth in the United States (+26.5%) and in China (+18.8%). Fruits represent 48.5% of all Valencian agro-food exports and recorded a slight 0.2% drop (to 3.6 million Euro) compared to the January-June period in 2018.
Source: elmundo.es
