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Spain: Potato prices plunge due to massive imports

Zoom in font  Zoom out font Published: 2016-04-14  Views: 8
Core Tip: The Valencian Agricultural Producers Association (AVA-ASAJA) has denounced that massive potato imports from France, but also, to a lesser extent, from other countries, such as Morocco and Egypt, are closing doors to the Valencian production, whose campaig
The Valencian Agricultural Producers Association (AVA-ASAJA) has denounced that massive potato imports from France, but also, to a lesser extent, from other countries, such as Morocco and Egypt, are closing doors to the Valencian production, whose campaign has only recently started. Producers in Valencia have expressed their growing concern because they are simply not finding buyers for their crops. Small stores, wholesale markets and supermarket chains are all reporting them to be perfectly supplied with French potatoes purchased at extremely low prices, against which Valencian producers are unable to compete without losing money.

French potatoes are indeed marketed in Spain for between 25 and 32 cents per kilo, when the production cost in Valencia doesn't fall below 35 cents, thus preventing Valencia's crops from finding a place in the market. The only alternative they have found so far is to try selling the potatoes under a formula known as "under commission", i.e. without a previously agreed price, which is unreasonable, since this commercial practice inevitably results in poor prices for the grower.

The president of AVA-ASAJA, Cristóbal Aguado, explained that "the wholesale markets of Valencia, Madrid or Barcelona, as well as the supermarkets, are rejecting our potatoes given the overwhelming supply of low-priced French potatoes and this business climate is extremely negative for Valencian producers, to the point that the future viability of our campaign is currently in jeopardy."

Although the quality of (old) French potatoes at this time is much lower than that of the freshly-harvested Valencian varieties, the fact is that supermarkets and stores are overstocked with the French produce. Also, to further complicate things, Valencian producers believe that this situation could last until June, so they may have no choice but to try selling their harvest for ruinous prices, as has already happened in previous years.
 
 
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