A 'misleading' price war has led to disproportionate differences between farmgate and point-of-sale prices for food products – including fresh fruits and vegetables – sold through Spain's major retailers, consumers organisations have claimed.
According to data published by the Spanish Index of Prices at Origin and Destination (IPOD) for the month of October 2009, the difference between food prices paid at origin and those paid by consumers has increased to 537 per cent, up from 455 per cent in October last year.
Farmers organisation COAG, along with consumer groups UCE and CEACCU, claimed this was irrefutable evidence that the large retailers had extended their profit margins amid increasing price competition in the Spanish market.
The gap was even wider for fresh produce, IPOD revealed, pointing to a 582 per cent mark-up in the price of vegetables between source and shelf.
Onion prices registered the largest differential, at an average of 1,733 per cent above the wholesale price.
Price differences for other vegetables were similar, including carrots (1,213 per cent), potatoes (1,200 per cent), aubergines (1,131 per cent), cabbage (1,011 per cent), cucumbers (778 per cent) and courgettes (686 per cent).
For fresh fruit, the products with the biggest price differences between origin and point of sale were peaches, lemons and apples, which were on sale respectively at an average of 670 per cent, 570 per cent and 562 per cent above the rate paid to the grower.
Last week, the European Commission said it was necessary to implement 'measures at Community level, to avoid unjust or unfair contracts between farmers, industries and supermarkets in setting food prices'.
While welcoming this initiative, COAG has demanded a new Common Agricultural Policy to recover regulatory mechanisms to ensure fair payments to growers and affordable prices for consumers.
'The authorities should avoid any speculation in food and agriculture on the part of the big retailers,' said Eduardo López, secretary of COAG. 'It is essential to ensure the public interest.'
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