Nobody regulates the production. According to Hein the problem is mainly the result of the production not being adjusted to the market. "It has been like this for years already. There is not even one umbrella organisation in the sector, which regulates the production in a certain manner. In the past there was an attempt together with various production organisations to destroy part of the chicory pens, but so far without success. The annual production differs and is very dependant on the weather. The harvest of the pens last year was extremely good. Also growers themselves do not decide to destroy part of the harvest and that is obvious. It is very difficult to compromise with that kind of thing, because one then loses money. Nobody is prepared to do this. But it would definitely work in the long term. Other years there were also periods with more supply than demand, but now it is becoming chronic. The sector is frittering away and solutions appear to be impossible to reach. Also not with other countries."
He mentions that the minimum price at auction is 30 cents. "This is also below cost, but if this is increased who will pay the difference? For producers this is a calamity at the moment. For the trade less so. They still have their margins. Growers are being duped."
For more information:
Hein Buedts
Buedts bvba
Tel. +32(0)16 53 28 42
Email: [email protected]
www.buedts.be
Hein Buedts
Buedts bvba
Tel. +32(0)16 53 28 42
Email: [email protected]
www.buedts.be
