"Spain: "The worst citrus campaign of the century"
According to Revilla, there was a drop in orange consumption in Europe by 30%, regarding previous years. The crisis is pointed as the main reason along with the drop in buying power by families, that are tightening their belts and reducing the amount of oranges they buy, despite the benefits (vitamin C) of this fruit in a diet.
Moreover, Revilla points that the sector has to face another added problem - the pressure of big distribution chains. The president for the citrus association explained that "the commercializing companies, along with farmers, are being pressured constantly by big retailers, to drop prices, when production costs are higher and higher: water costs for irrigation, gasoline, logistics and raw and added materials (packaging materials for example) continue to go up day after day, making profitability for producers smaller by the day. Presently, prices in the field are not above 10 cents per kilo".
Due to this, Teodoro is worried about citrus producers who "year after year, see profitability drop in their exploitations and consequently, abandon the cultivation areas, causing less jobs and less income for the fields in Andalucia".
On the other hand, Revilla is also worried about the uncertain future for the second part of the campaign, since "that halfway through the campaign, there's still 70% of "navelina" and 40% of "salustiana" in the orchards to be collected ". He's also not optimistic regarding the medium term situation: "The near future will be complicated, as we don't know how to get a better benefit, because, today, have a product of quality with health guarantees which is not a competitive advantage, but a demand. Meaning, it doesn't allow you to sale more and better, it just allows you to sell".
Source: abc