Spain’s biggest fruit and vegetable cooperative grouping has warned that the country’s orange industry faces permanent and irreparable damage due to years of successively ruinous campaigns.
Anecoop highlighted the plight of producers in its annual report, which was presented at the company’s annual general meeting in Valencia last week. In spite of posting a record breaking sales volume of 746,342 tonnes, an increase of 4.4 per cent on the previous year, Anecoop said the citrus season had been poor, with sales falling by 1.1 per cent and prices down 1.7 per cent on 2013/14 levels.
Returns for early and mid-season mandarins were generally below the cost of production, although late-season varieties such as Nadorcott performed somewhat better.
In the case of oranges, however, the company said the season “could not have been any worse”. This was particularly true of late season varieties which were heavily oversupplied.
“After five successive poor seasons, in which oranges have increasingly been subjected to price promotions by the big supermarket chains, the issue is becoming a serious problem that could cause irreversible damage to the industry,” the company said.
Grower unions have complained repeatedly to trade authorities about the role of the retailers in sinking orange and mandarin prices, prompting the announcement of the creation of a committee for the agri-food supply chain in order to prevent abusive practices and protect the food industry.
The independent committee, made up of producers, agricultural unions, producer guilds, cooperatives and supermarkets, will be established in April. It is tasked with promoting good agricultural practice and corporate social responsibility, and seeking “ to find a balance between the profits of retailers and producers who form the weakest link in the supply chain”.
