Spain: Citrus production costs have risen by 18%, selling oranges at source for less than €0.27/kg and mandarins for €0.33/kg would be illegal

Published 2024년 8월 21일

Tridge summary

A recent study by the Valencian Association of Farmers (AVA-ASAJA) has found that the production costs of citrus fruits, specifically oranges and mandarins, have increased by 18% since 2020. The most significant factors contributing to this increase include fertilizers, own machinery, external services, phytosanitary products, irrigation water, other raw materials, and labor. The total production costs of oranges and mandarins have risen to €8,080 and €9,000 per hectare, respectively. AVA-ASAJA is urging the Food Information and Control Agency (AICA) to ensure that prices at the point of origin are above production costs and is advising farmers to report any contracts that do not meet this requirement. The president of AVA-ASAJA, Cristóbal Aguado, has criticized the government for the logistical problems caused by the pandemic, the increase in raw material prices following the Ukraine war, and various regulations that have led to a significant rise in food production costs.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

A study carried out by the technical services of the Valencian Association of Farmers (AVA-ASAJA) confirms that the production costs of citrus fruits have increased by 18% since 2020, so that in the case of oranges the production costs are €0.27/kg while in the case of mandarins they rise to €0.33/kg. The items that have seen the greatest increase in price since 2020 are fertilizers (with an increase of 70%), own machinery (+26%), external services (+25%), phytosanitary products (+25%), irrigation water (+20%), other raw materials (+19%) and labor (+8%). Fixed costs (depreciation, taxes, etc.) have also experienced an increase, specifically by 5%. On the other hand, opportunity costs (interest on capital) have decreased by 5%. In total, the production costs of oranges have risen from €6,827 per hectare (€/Ha) in 2020 to €8,080/Ha in 2024, and the production costs of mandarins have risen from €7,589 to €9,000/Ha, taking into account average productions of 30,000 and 27,000 kg/Ha ...

Source: Agroinformacion