High production costs undermine Almeria’s best campaigns for a decade
The key Spanish producing region Almeria looks set for an excellent 2021/22 fruit and vegetable campaign, according to manager of COEXPHAL, Luis Miguel Fernández. However, runaway inflation has cast a cloud over the sector. Despite a 6% fall in total production, revenues are up 31%. But costs have also grown by 26%, cutting into profits.
“We are faced with the uncertainty of not knowing when [costs] will peak,” said Fernández. The manager of COEXPHAL added that the sector has the capacity “to overcome adverse circumstances, we have seen it in the hardest times of the pandemic and we are seeing it now, with a war in Europe and an excessive increase in costs. This has allowed us to work for and with European distribution chains to have a market supplied with quality fruit and vegetables.”
The most profitable product this season has been tomatoes. Sales fell by 1% but prices increased by 46%, generating 45% higher revenues. Unit costs were up by 25%. The decline in international supply, mainly Dutch in winter, and occasional ups and downs in Moroccan sales have created a feeling of scarcity on the market.
