Spanish capsicum growers and auctions are taking drastic action to salvage their season in the face of woefully inadequate pricing.
According to Proexport, which represents grower-exporters in the south-eastern region of Murcia, the capsicum sector in the renowned Campo de Cartagena area is experiencing its worst-ever crisis.
Mariano Zapata, president of the auctions section of Proexport, said: “For several weeks now, a kilo of red pepper, depending on quality and size, has been selling at auction for between €0.05 (4p) and €0.12 at the farm gate for processing and between €0.20 and €0.30 for wholesale markets. Costs of production and harvesting are at least €0.40 and consumers are buying them at retail for €2 a kilo. In such dire crises as these, it is necessary for co-ops and auctions to work together, as well as make contingency plans to avoid this sort of problem in the future.”
Grower groups and other representatives from the sector met at the end of last week and agreed the auctions will not offer any Class II red peppers for less than €0.15 a kilo. If it cannot reach that price level, the produce affected will be destroyed or sent for animal feed.
The association estimates that 6,000-8,000 tonnes could be destroyed this week as a result of the order. Zapata said: “This will help stabilise prices and recover some profitability for producers.”
Growers involved in producer organisations will be withdrawing product under the auspices of their operating funds and so should receive a small indemnity in part compensation for the products’ value.
Producers have been working against a background of rising input costs from seeds and plants to agri-chemicals and, increasingly, biological control materials as well as plastics to cover their crops.
