Veg growers “not profiting from higher prices”

The international marketing magazine for fresh produce buyers in Europe
Maura Maxwell

BY MAURA MAXWELL

@maurafruitnet

Veg growers “not profiting from higher prices”

Benefits are not being passed down the supply chain as intermediaries exploit the current shortage

Veg growers “not profiting from higher prices”

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An agricultural union in Valencia has warned that price hikes caused by supply shortages in fruits and vegetables due to adverse weather are not being passed back to producers.

Unió de Llauradors said in the case of Clemenvilla mandarins consumers are paying six times what the grower receives, with farm gate prices of €0.23 per kg compared with a retail price of €1.59 per kg.

“In tomatoes, prices to the grower have risen by €0.10 per kg, while the corresponding increase at retail level is €0.43 per kg,” the union said.

The organisation said courgette, aubergine and pepper output had dwindled to virtually nothing, and these products were among those that had experienced the biggest price increases.

It accused intermediaries and distributors of exploiting the shortage by “sending products to markets where demand is greatest in order to maximise their returns”.

“Producers aren’t exactly lining their pockets from this situation – in fact it remains to be seen whether the higher prices will be enough to compensate for the lower volume,” it noted.

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