World News 11/06/2014

Olive oil Spanish producers are envy and angry

Grow up olive oil exports but not olive oil prices. Different the trend in the major producing countries in the euro zone. Spanish farmers denounce "speculative and abusive practices of the three major traders, Sovena, Migasa and Deoleo, representing a market share of 75%"

The Spaniards begin to look with apprehension to its commercial-production model, created in the last 30 years, with the fear that he had created a monster that you can not control and that is leading to the collapse of thousands of growers and millers.

Until April 30, 2014, according to data provided by COAG (coordination of agricultural associations) exports have come to tonnelalte exceed 600 thousand, an increase of 80% compared to last season. Well even the domestic market, with sales of 337 thousand tons (+20% compared to last year).

These market conditions, however, do not seem to have the slightest influence on the wholesale price.

The COAG complaint as false quotes distributed by the Ministry of Agriculture in Spain (2,49 € / kg), as saying last week the price has dropped to 1.80 € / kg.

This contrasts, highlights COAG, with the trend in the major producing countries in the euro zone, Italy and Greece, oil is traded respectively 3.40 and 2.46 € / kg, or outside the EU, in Tunisia, where it stood at 2.41 € / kg.

COAG has therefore denounced "the abusive practices of the big three and speculative traders, Sovena, Migasa and Deoleo (representing a market share of 75%) and distribution chains. The investments made by farmers and mills for raw materials of high quality will not be rewarded. "

The COAG has asked the Ministry of Agriculture to immediately call the monitoring committee, to get to turn on support measures where the prices from falling below the threshold of profitability.

COAG asked the industry and retailers to comply with the commitments and policy do its part: "In the domestic market for almost 70% of oil in the bottle is sold under private label and is still used by supermarkets and hypermarkets such as product recall for very aggressive offers and promotions. Currently the industry does not create value for farmers. A recurring situation that is unsustainable. We need mechanisms to regulate the market more flexible and effective to provide some stability to olive oil prices. "

di S. C.