Russian veto provokes excessive price margins

THE Russian economic veto has provoked a tenfold increase in the price of peaches and potatoes from harvest to point of sale, according to Spanish agricultural association COAG (Coordinadora de Organizaciones de Agricultores y Ganaderos).

Peaches, nectarines and potatoes are the produce to have been affected by the Russian economic veto and in August prices rose significantly. From the field to the table, the value of a peach or potato can increase 10 times over, says COAG.

COAG has asked the food regulators Agencia de Control Alimentario (AICA) to conduct a rigorous investigation to ensure a responsible and stable market, and to avoid speculation in the sector.

Peaches can be bought for €0.17 a kilo from the farmer, but the price has now risen to €1.85 at point of sale. Potatoes follow a similar pattern, with an average price of €0.06 in the field and €0.69 in the shop.

Miguel Blanco, COAG’s Secretary General, said: “Wholesale prices have been suffocated thanks to a combination of market speculation by third-party dealers and the big European distribution companies.

“They have taken advantage of the Russian economic veto and lowered the prices offered to the agricultural producers without doing the same with consumers, thus obtaining exorbitant price margins.”

COAG has asked the government to look at agricultural laws and has urged AICA to open an investigation into what is going on.