The Union of Valencian Agriculture, AVA-ASAJA has ascertained that German wholesalers and major distributors of fresh produce have begun an aggressive campaign to beat down Valencia citrus prices. According to the Union, German companies are not hesitating to put strong pressure on Spanish suppliers in order to get prices down. The offensive, warns the Union, could spell doom for the industry.
“The situation is getting worse,” says Cristóbal Aguado, the chairman of AVA-ASAJA. “The German pressure is affecting the whole market. People have to realise that this season experienced a 20% decline in citrus harvest, and that growers were forced to compensate for a bad year by asking slightly higher prices. Prices, by the way, that were still reasonable. We need these prices to survive. If the Germans are forcing us to ask even less, then the whole sector could be in tatters. These are unacceptable, unscrupulous strategies.”
AVA-ASAJA has high expectations from a new law announced by the Minister of Agriculture this month. Also, EU officials have made public their intent to tackle some of the issues raised by the German tactics. “Authorities have to intervene in order to stop these abuses,” confirms Aguado.
“Both the growers and the companies are calling for resistance,” the chairman of AVA-ASAJA continues. “Because we know that if we don’t act now, it might be too late. The citrus industry is already facing many challenges, growers defaulting on their payments, the continuous pressure of creditors and the many bankruptcies. We can’t afford to lose this season.”
Aguado warns that if prices go below production costs (0.21 cents for the orange, 0.26 cents for the mandarin), growers won’t sit idly by. “We will continue to fight this unacceptable attempt to ruin us.”