Plans to reinvigorate Valencia’s ailing citrus industry were unveiled last week following a meeting between representatives of the regional government and industry association Intercitrus.
They have agreed to launch a 15-year strategy to reverse the decline in the region’s orange production, which the sector blames on the increased availability of Southern Hemisphere citrus, in particular from South Africa which benefits from preferential treatment by the EU.
Plans include the creation of a lobby group to defend the interests of the industry in Brussels, organising trade missions to open up new markets and financial aid for producers whose income has been affected by climatic or commercial reasons, as well as subsidised loans for farms that were flooded by last autumn’s rains.
Two years ago the EU agreed to extend the period of tariff-free South African citrus imports by a six-week period as part of its trade deal with South Africa –a move which Spanish producers say has been disastrous for the domestic industry. The same trade agreement will phase out tariffs altogether by 2025.
As a result, producers say the amount of citrus left to rot in groves this year is higher than ever as it is simply not profitable for them to harvest the fruit.
However Justin Chadwick CEO of the South African Citrus Growers Association disputed the industry's claims and said Spain's problem was due to a lack of competitiveness.
'South Africa has not exported any oranges during the period of step down tariffs in 2018 – [Spain should] stop pointing fingers and get competitive with the right product,' he tweeted.
No comments yet