Freshuelva urging producers to destroy fruit rather than sell it at below-cost prices
Spanish strawberry producers are facing another disastrous season, with many being forced to discard fruit and dismantle farms two months before the end of the season due to plummeting prices, according to Huelvan grower-exporter association Freshuelva.
The organisation’s president, Alberto Garrocho, told F&H Hoy that the season so far had been worse than last year which was itself one of the worst in recent years. “Two weeks ago, prices were down 20% on 2013, but now it is closer to 40% ,” he said.
With prices barely reaching €0.30 per kg – well below the cost of production – Freshuelva is advising growers to take the necessary course of action to ensure that losses are kept to a minimum. However, Garrocho claimed businesses had a responsibility to destroy fruit rather than marketing it at below-cost prices, which would have negative repercussions for the entire industry.
Garrocho claimed that the collapse in prices had led to a “significantly high volume” of fruit being thrown away and many producers opting to take down farms in order to save on the cost of labour and harvesting.
Growers in the province of Huelva, where around 96% of Spain’s strawberry production is concentrated, were banking on a positive 2014 campaign to make up for the poor returns they received last year. In 2013 the sector saw a 10 per cent fall in output and 20% drop in prices compare with the previous year, ending the campaign with a production total of 274,800 tonnes and sales of €315m. In spite of the poor season, Huelva’s strawberry acreage increased by 2% this year to 6,980ha.
Garrocho pointed out that although a small proportion of discarded fruit is being used for processing, the factories are unable to deal with the high volume currently available and the bulk is therefore going to waste.