Spain - The future of blueberries in Huelva is a cause for concern

05.06.2019 345 views
Huelva's strawberry campaign has already finished for the second degree cooperative Onubafruit, which has sold around 36 million kilos. In the coming weeks, it will continue with raspberries, blackberries and blueberries until the end of June. "The strawberry season started with a little delay, and the production peaked between March and April. The quality was good and the fruit could be marketed without problems, although at lower prices," says Francisco Sánchez, manager of Onubafruit. "The campaign has finished sooner than usual, in the second half of May, since the good weather in the destination countries led to their local productions being ahead, leaving hardly any room to sell our strawberries. It has been a normal campaign, but with average prices between 15 and 20 cents lower than last year." As for raspberries, Onubafruit expects to finish the campaign with a harvest totaling approximately 10 million kilos. "We have produced 20% more raspberries this year, and we have also noticed an increase in the production volumes in general in Spain, and especially also in Morocco. This has caused prices to fall compared to last season, although the raspberry campaign has still been a good one." "We are proud of our exclusive varieties, considered by many to be the best in the market, with the flagship one being the Lagorai. These varieties promise to give us a great future; our customers are delighted," says Francisco Sánchez. As regards the blueberries, the cooperative expects to harvest 16 million kilos this season. This has been the berry undergoing the most difficulties due to the oversupply observed since April, which has led to prices collapsing below the production costs. According to Francisco Sánchez, two factors have led to this situation: the excess of cultivated area and, above all, the incursion of numerous inexperienced producers and marketers. "This year, just like in previous campaigns, the volumes in Spain have grown significantly, and this has been happening also in other countries, such as Morocco and Portugal. Thus, there are more blueberries being produced than the market can absorb, so there is no balance between supply and demand. It also doesn't look like this situation will be resolved soon, so the future of blueberries is a cause for concern. The thing is that, unlike strawberries, raspberries or blackberries, which can be easily removed and replanted each campaign in order to regulate the production, blueberries are shrubs that take years to produce. It doesn't look like this crisis will end soon," says Sanchez. While some believe that the solution may be to open up the Chinese market, Francisco Sánchez says that, although very interesting and necessary, it entails quite high risks. "There is a very great distance between Spain and China, which makes it even more challenging to deliver a product able to meet the high standards demanded by Chinese consumers. It's not as easy as you may think." Onubafruit already makes shipments to South East Asia, to countries such as Malaysia, Hong Kong, Singapore or Indonesia. According to the manager of Onubafruit, labor is one of the main challenges for Huelva's berry sector, both now and in the near future. "Producers are dealing with serious difficulties to harvest their plantations on time, since there are not enough local people willing to work in the field, and sub-Saharan and Moroccan migrants do not arrive in time due to the numerous bureaucratic and administrative obstacles. One of the direct consequences of this situation is that, in many cases, the fruit ends up being harvested late, losing quality and value and causing complaints in the market. The lack of pickers is a serious problem; it is an issue that urgently needs to be talked about between the sector and the administrations in order to find a solution." Source - https://www.freshplaza.com
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The government cost shares funding for crop insurance; beef producers say livestock insurance options should get the same treatment.Livestock producers face a fundamental inequality when it comes to business risk management (BRM) programs in Canada — but industry groups are proposing a fix.One of the starkest differences is in government-based insurance programs. Crop producers enjoy coverage that’s typically subject to a 60/40 government/producer split, with provincial and federal governments picking up the largest part of the tab.Organizations such as the Canadian Cattle Association are calling on the feds and provinces to share the cost of pricey livestock price insurance (LPI) premiums with beef producers along the same lines, says Tyler Fulton, president of the CCA, who also serves as co-chair of the association’s foreign trade committee.That would bring some equivalency to these BRM programs, says Fulton. Crop insurance covers yield loss, the biggest risk for crop growers. 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Crop insurance requires several billion dollars in government support while a similar model of support for LPI would be closer to $150 million to $200 million, said Fulton.Although he says the federal government is coming around to the idea of LPI cost-sharing, it has previously cited trade risk and prohibitive cost as reasons to not participate.Fulton doesn’t think those arguments hold water in an environment already brimming with trade risk from U.S. tariffs, especially with many beef producers still priced out of the LPI market.“It’s really frustrating that we can’t effectively cover the risk because the government says that it’s too risky in this environment.”Ultimately, beef and crop production are related but separate ag sectors with their own specific needs, says Fulton, and a perceived “one size fits all” philosophy driving government-funded BRMs isn’t cutting it.”I think that we need to move to a model that is more industry-specific. It’s really difficult, if not impossible, to design a safety net program or a risk management program that works well for all sectors of agriculture.”Brian English, a beef producer from Rivers, Man. who runs a cow-calf, feeder and backgrounding operation at nearby Bradwardine, took out an LPI for the first time this year. He also highlights the government’s treatment of crop growers compared to beef producers.“Why shouldn’t we get the same benefits as these guys that are putting in thousands of acres of cropland?” he said. “We should be on equal footing as them. The federal and provincial governments should do the same funding schedule for livestock price insurance as they do for crop insurance now.”English took out an LPI policy this year in response to the threat of U.S. tariffs.“Trump had put on the tariffs for two-and-a-half days (and) we heard the horror stories of the cattle crossing the line getting $1,000 tariffs on each animal. And then (the U.S.) stopped that for a brief period of time and there was a chance that it was going to come back on right away.”LPI has historically been a hard sell to beef producers due to policy cost. Fulton estimates a high rate of $50-$60 per calf for a calf policy (the program has three cattle policies available: calf, feeder and fed) on a 10-year margin.However, thanks to high prices in all cattle categories in recent years, margins are much better today. That offers extra incentive to take out an LPI policy because beef producers will have more to lose once the bull market (in investment terms) goes bearish, he says.“$50 to $60 in today’s market is not as significant. It’s not as big a barrier, but it’s still a large barrier when talking about an individual animal (and) having to pay $50 or $60 just to be able to cover it.“If you get 60 per cent of the cost of your insurance policy covered, it really changes the motivation and the desire to actually cover off that risk because you’re not using up a bunch of your profit margin just to insure it.”Beef cattle graze in a pasture in Saskatchewan. Photo: Michael RobinOther LPI changes neededFulton would also like to see a widening of LPI’s application window. Although applications for feeder and fed policies are accepted year-round, calf policies are only available from February to June each year. However, risk exposure continues long past June.“So for most of the year the tool is not accessible.” English has a technology-based suggestion for improving the program. He says the application website needs to be more user-friendly for cell phone users and especially those who live in areas with limited internet bandwidth.“It’s just a little daunting the first time that you’re (applying) … It’s kind of clunky. It’s not iPhone friendly and I do everything on my phone.“We put all our records of our cattle on our phone, check on our weather. Everyone uses their phones more than a laptop and so I think if they made it so that it was a little easier to use on your phone, it’d be that much easier also.”Balanced outcomesThere could be some positive tradeoffs with other government BRMs if a cost-share arrangement for LPI is developed, says Fulton. For example, AgriStability payments wouldn’t trigger as easily if beef producers already had coverage through LPI.(AgriStability is a federal-provincial-territorial program meant to protect farmers from extreme market price declines that threaten the viability of their farms.)“Let’s say a 20 per cent tariff is implemented by President Trump and our prices here in Canada drop by 15 to 20 per cent. That would likely trigger a payment in AgriStability normally,” explains Fulton.“But if we had coverage with livestock price insurance, for those that had a policy it would result in a payment through livestock price insurance and therefore would not result in a drop in your farm income and consequently you wouldn’t need to trigger an AgriStability claim.”It’s a scenario Canadian crop producers already enjoy, he says.“Because people have crop insurance, they can experience a 40 per cent hit in their yield (and) they get a payment through their crop insurance policy. They don’t make an AgriStability claim because they’re already covered off through their insurance.”Government willing to talkThe beef industry is slowly but surely catching the ear of government on cost-shared LPI policies. Fulton says both the federal Conservative and Liberal parties — motivated in part by U.S. tariff threats — were interested in providing better risk management tools to farmers prior to the federal election.“This represents a cattle industry-developed program that works really well and so when we started to get exposed to the tariff issues, it really changed the conversation. It just made it very obvious that there was a deficiency here and they identified that.”Fulton has spoken with new federal Agriculture and Agri-Food Minister Heath MacDonald and hopes to meet with him soon to address the uncertainty and risk the industry is facing. He’s counting on the Prince Edward Island-dwelling MacDonald having an understanding of LPI, given Maritime producers have been eligible since last year.Countervail fearsAn attendee of Manitoba Ag’s Navigating Livestock Price Insurance webinar on May 8 asked if cost-shared premiums would trigger countervail action from the U.S. The answer is “unequivocally no,” says Fulton.“The industry is not at all concerned about a countervail duty related to livestock price insurance cost-shared premiums,” he says.“Our American counterparts have a very similar program that is cost-shared and it is really structured similarly to their crop insurance program, and so they’re addressing what they’ve identified to be a gap in risk management tools offered for farmers and inequity for livestock operations.”Source - Manitoba Cooperator