The future of the protected crops sector in Spain is very uncertain according to Andalusia-based supply chain group Hortyfruta.
Sales values of fresh produce recorded by Hortyfruta’s membership fell by nine per cent year-on-year for the 2010-11 season just ended while average prices fell by 15 per cent for the same period.
At a press conference on Monday, Maria Jose Pardo, general manager of the organisation which groups growers and marketers of capsicum, tomatoes, courgettes, aubergines, green beans, cucumber, melons and watermelons in Andalusia said: “The sector is going through a grave crisis which deepens season after season…In order to increase productivity on their farms, growers have to invest in production infrastructure. However, the main problem is that growers’ profits do not allow for any reinvestment. As a result, the existing production model is facing a continual loss of competitiveness in comparison with other production regions.”
Pardo added that large numbers of growers have faced financial ruin as their costs spiral upwards and the prices paid for their products plummet.
The worst performing product over the past season was courgette for which incomes fell by 41 per cent on the previous season. Meanwhile, melon earnings plunged by 20 per cent and those for tomatoes by 17per cent. The only products that bucked this trend in2 010-11 were watermelons, capsicum and green beans.
Hortyfruta is warning that this crisis in the fields is having a knock-on effect on auxiliary industries such as those that supply the plastics or irrigation systems required by producers.
“Faced with this outlook, Hortyfruta believes that the future viability of the protected crops sector is uncertain,” said Pardo.
In conclusion Hortyfruta said that a solid, modern and above all profitable production and marketing model is needed.
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