The fruit and vegetable campaign in Almeria has had a good start in terms of prices, with the exception of loose tomatoes, which are still being sold for about 60 cents. The rest of the product range is being marketed for prices exceeding 1 Euro, and in some cases, like those of cucumbers and zucchini, with figures above what was expected.
However, nobody can assure that this situation will continue for a week or two. "The uncertainty when it comes to prices puts our activity at risk," said Andrés Góngora, provincial secretary of COAG in Almeria, who organized an informative breakfast to announce that his organization is going to champion a change in the province's marketing model. This change would entail the sale of the entire production under a supply contract, with a price already set and agreed in advance.
"Just now, when the prices are good and there is no tension, is the perfect time for us to do this," said Góngora, who showed a price graph with the most marketed vegetables in recent months. These reveal that the price of a single product can oscillate hugely from one week to the next. "The graphs look like a rollercoaster due to the volatility of a market shaped by open price sales. This is particularly harmful in a year in which production costs have increased," said the provincial secretary of COAG.
At the moment, only 30 percent of the province's vegetable production is sold under contracts. This share corresponds to the production that is marketed in Spain, and which is subject to the Law of the Food Chain, which makes contracts compulsory. However, 70 percent is being exported, and those shipments are not subject to the same requirements.
Next December 1, Europe will issue a Directive based on the Spanish LCA, which will force EU member states to introduce a contract requirement for the marketing of vegetables. The sector is waiting to see how this legislation will be interpreted by Germany or France, which are important clients for Almeria's sector.
COAG believes that it is time to meet with the growers who have joined the management teams of cooperatives. The idea is to reach an agreement and set fixed prices for the entire year. "It is not a matter of raising the price, but of preventing it from falling," said Andrés Góngora.
With the support of the European Directive, COAG is going to start a campaign to raise awareness on the price crisis management mechanisms that are currently in place. These, according to Andrés Góngora, have not been properly explained to the managers of the marketers.
In order for crisis management measures to be effective, COAG claims that producers need to have been part of a Fruit and Vegetable Producers Organization. This will allow products never to be sold below a set minimum withdrawal price.
However, most of Almeria's production is sold outside this associative figure.
In 2019, the European Directive will enter into force, so Almeria-based traders will have to renegotiate their contracts with European supermarkets. Until then, COAG will hold meetings with farmers to make them see that, with the new tools, it is time to take control of the prices of their products and put an end to uncertainty and price drops.