Spanish onion growers and exporters are facing serious threats to the long-term viability of their sector.

Production costs are on the increase while prices remain low. The situation has been difficult for three consecutive season, according to producers, exporters and marketers who met together recently under the auspices of the onion committee of national grower-exporters’ federation Fepex.

According to committee chairman Alfonso Tarazona, the sector is seriously demoralised. He said: “Although prices have increased since the beginning of January, it seems this trend is just sporadic and there are grave doubts about the future viability of the onion business. Before the new year, thousands of kilos were sold below the cost of production.”

Exports are in crisis, according to the committee as intra-EU trade in onions rose in 2009, but it was due to sendings from the Netherlands and France which both experienced increases while Spain’s sendings declined.

Given the gravity of the outlook for Spanish onions, the committee is now trying to encourage onion growers to forge links as producer organisations to improve planning for upcoming seasons.

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