From Monday 15th of April LAVA have started a 'surplus value compensation' to be added to various vegetables. A fixed amount is added to the clock price, which is paid in full to the grower. For cucumber this is 2 cents each and for tomatoes up to 5 cents/kg. The extra expenses are charged for the efforts of the growers to supply the auction house with a good product. Exporter Guy de Meyer reacts to the surplus value compensation:
Not enthusiastic
"As far as the surplus value compensation for growers is concerned we are not happy about the sudden introduction of this extra expense. As already happened on a number of occasions in the past, LAVA auction house made this decision without listening to the point of view of the trade and exporters. As a Belgian exporter our competitive position with our neighboring countries is again made more difficult. Previously our clock system was the ideal way to form a correct price for both the horticulturist and the trader. Now the price at the clock is being increased, for instance, by Euro 0.05/kg for tomatoes, which will immediately result in delivering less to the clock in order to recuperate the 5 cents and to be able to compete with our colleagues abroad. Personally I think that this surplus value compensation will lead to traders buying their product directly from growers with the result that the supply to the auction house will automatically decrease."
Producers
"I have already spoken with various producers and have already also been contacted by various producers and it is clear that the better part is not behind the decision to add the surplus value compensation. I fear that in the long term the average price will decrease further, because everybody will give as little as possible at the clock in order to be remain able to sell."
"I have already spoken with various producers and have already also been contacted by various producers and it is clear that the better part is not behind the decision to add the surplus value compensation. I fear that in the long term the average price will decrease further, because everybody will give as little as possible at the clock in order to be remain able to sell."
"As an exporter we of course want our producers to receive a correct and market related price, but this will definitely not happen by charging an extra expense to the trader. Many colleague exporters are also not happy about this new measure and also will draw their own conclusions."
For more information:
Guy de Meyer
Demargro BVBA
11, Tombrugstraat
8850 Ardooie - Belgium
Tel: +32 (0)51 74 70 75
Fax:+32 51 74 58 11
[email protected]
www.demargro.be
Guy de Meyer
Demargro BVBA
11, Tombrugstraat
8850 Ardooie - Belgium
Tel: +32 (0)51 74 70 75
Fax:+32 51 74 58 11
[email protected]
www.demargro.be
