Several supermarket chains across Europe are trying to find out the actual costs of producing oranges and mandarins in Spain through their suppliers to have more information that will enable them to collaborate with the growers.
However, the insistence on requesting this data to various Valencian citrus firms has led many to think that the real intention behind finding out the actual production costs is to be able to adjust purchase prices based on such information.
No one seems to be speaking out, and this is generating plenty of confusion that may bring negative consequences for growers. Can anyone really believe that importers wish to learn more about growing costs to adjust prices in favour of growers? The intention is surely to push them further down.
The problem is that each one informs its clients in their own way, without following any accurate scientific models, when there is more than enough information available, provided by the Valencian Institute of Agricultural Research (IVIA).
Pedro Caballero, a researcher at the Institute, has conducted detailed studies on citrus production costs taking all parameters into account.
His most recent study is from 2012. He estimated the cost of producing a kilo of oranges at 0.21 Euro, and one of mandarins at 0.26 Euro. If anything, it would be necessary to update them with the cost increases of the past two years, especially in regards to fertilisers and electricity, which is the main source of energy for the pumping of irrigation water, which is used in greater amounts as a result of the current periods of drought.
Therefore, it is completely unnecessary for anyone to risk reporting data to their clients which may be inaccurate or based on more or less approximate assumptions, as we have a fully scientific and accurate information service.
Source: Lasprovincias.es
