Farmers say many farms are disappearing due to “too high production costs”
Food prices are a direct result of the rise in energy, fertilizer and raw material costs since the outbreak of war in Ukraine. All actors involved in the food chain agree on this and this was communicated to him by the Minister of Agriculture, Luis Planas, during the meeting he held with the sector this Monday to address this problem. “The problem started a year ago with the invasion, but since October 2021, the tension in the food market has already been visible due to the increase in consumption in the face of the supply constraint,” said the minister, acknowledging that the moment of “huge complexity” and that the agri-food chain plays a role “up to the task”.
Farmers complain about such a large increase in production costs that many farms and livestock are disappearing. Pedro Barato, president of Asaja (Agricultural Association of Young Farmers) assured after the minister’s intervention that fertilizers have risen 62%, seeds 50%, energy 49% and fuels 46%.
In addition, Barato believes that even if the war in Ukraine is over, the cost problem may persist because there are specific problems for Spain, such as the drought – especially in the southern half of the country – which directly affects the citrus or olive oil crop. olive oil, which meant that half the amount of the previous year would be harvested in 2022. “Historically, we have lived with relatively low food prices, which I don’t think we will return to. Now the problem is the war, but from now on the drought will determine the production costs,” they explain from Asaja.
Asaja claims that one-third of the profit goes to those who produce the food, another third to those who process it, and the remaining third to those who sell it. “First you have to solve the problem of costs, otherwise the situation of the prices paid by the final consumer cannot possibly change”, Barato acknowledged.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
