EU vegetable harvests are sufficient this year; prices are low

Although the fruit and vegetable harvest in the European Union (EU) countries was affected by drought this season, overall the harvests were quite good. At the same time, in most EU countries, including Latvia, supermarkets are trying to push purchase prices as low as possible, reducing farmers' incomes to a critical level, admits Edīte Strazdiņa, head of the cooperative "Mūsmāju dārzejis".

She pointed out that the situation was analyzed in the recent working group of the EU non-governmental organization "Copa/Cogeca". At that meeting, the Latvian representative pointed out that protecting and organizing the internal market is very important this season.

"Compared to last year, when vegetable prices were significantly reduced by cheap imports, this year prices have returned to an acceptable level for tomatoes, cucumbers, carrots and onions, but are lower for cabbage. The market is unpredictable, there are too many fluctuations, where overproduction of vegetables alternates with their shortage, and it is difficult for farmers to predict stable production, prepare business plans, and calculate cash flow. In such a situation, it will be difficult to receive working capital loans from banks in the spring and plan development," said Strazdiņa.

She also noted that in the working group, representatives of EU member states acknowledged that one of the most significant problems is price fluctuations and market unpredictability, but the Russian embargo has not had a significant impact on the EU vegetable and fruit market.

"The worst situation is in Poland, where the problem is caused by a large volume of low-quality vegetables, prices are low and the overall market situation is assessed as difficult. Farmers are on the verge of survival, and a wave of farm bankruptcies is reported to have begun. This year, Poland is suffering greatly from the devastation caused by drought. Although insurance is offered, only 86 out of thousands of farms use it," said Strazdiņa.

In Lithuania, the quality of vegetables is being damaged by diseases, and drought has reduced the harvest, but at the same time, supermarkets are keeping prices low despite the shortage of quality vegetables. Compared to previous years, the overall market situation is much better.

In the Netherlands, the situation is better than last year in the sale of cucumbers and apples, while prices for other vegetables remain low. Farmers are feeling pressure on prices from supermarkets, where traders do not compare quality even with the cheapest offers, but instead follow online prices, putting pressure on suppliers.

Spanish gardeners are also feeling considerable pressure from supermarkets, which are demanding lower prices, even though fruit yields are lower due to drought and there is no oversupply on the market. However, the overall situation on the market is assessed as stable.

In the Czech Republic, the situation is better than last year, but the harvests are suffering from drought, most notably apples, pears, and plums, which are smaller in size and of poorer quality. Fruit and vegetable prices are low.

Meanwhile, in Sweden, the situation in the fruit and vegetable sector is favorable for farmers - the Russian embargo has no impact on the market, the local market is protected, and local retailers only buy produce grown in Sweden at prices favorable to farmers.

As reported, vegetable and fruit growers in Latvia will receive EU compensation for losses due to the Russian embargo this year for 4,750 tons of production. Of these, 500 tons are allocated to apples and pears, 1,250 tons to tomatoes, carrots and cucumbers, as well as an additional 3,000 tons to cabbage, cauliflower, cucumbers, berries. The assistance is intended for the withdrawal of products from the market for free distribution, early harvesting or non-harvesting.

The total budget of the EU financial assistance is 191 million euros, of which 250,000 euros have been allocated to Latvia. The decision to pay similar support this year was made by the EC on 31 July after Russia announced that it would extend its food embargo for another six months. Moscow's ban on food exports was introduced in August 2014 and covers fruit, vegetables, meat, fish, poultry and dairy products.

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Information prepared by:
Ingrida Michane,
LETA editor