COAG analyzes proposals for revitalization of the flower and ornamental plant sector

The Coordinator of organizations of farmers and cattlemen (Coag) expresses its satisfaction with the good reception that they had in the Committee of Agriculture of the European Parliament proposals for economic recovery in the production of flower and ornamental plant sector presented by this organization together with trade unions of farmers in FranceItaly and Germany. In particular, the European Parliament acknowledged, during the meeting of 30 September, the impact of the global economic crisis on small and medium-sized farms dedicated to this crop.

And it is that the financial crisis has caused a sharp drop in the consumption of flowers in the country, already in itself highly diminished compared to the vast majority of the European partners. If in the year 2003, per capita consumption was 74 euros, last year did not exceed the 28 euros, regitrando a fall close to 60%. In countries such as Holland, France or Germany, the consumption per person per year exceed 50 euros. The sharp fall in consumption, (60% since 2003), he joined the stagnation of exports, the fall in prices and unfair competition from third countries. Thus, the European Parliament acknowledged the impact of the economic crisis and took the opportunity to endorse all the proposals submitted by Coag in order to improve the competitiveness of farms.

Among the main measures specific to the ornamental sector proposed by Coag and hosted by the European Parliament, are: reduction of production costs; support for investments, reducing problems with financial loans; promotion of the promotion in the sector, whereas there is a specific com for the flower and ornamental plant, and that the sector does not have direct aid; improvement of European statistics in the ornamental sector; maintenance of the application of the reduced VAT; promoting plant protection specific to the sector and improvement in controls technologies and r & d tightening inspections in imports of flowers and plants from third countries, to prevent the spread of pests and diseases.

The fall in consumption has affected prices. The dozen of roses has become 4,36 EUR in 2003 3.77 euros last year. For its part, the dozen carnations has fallen from 1.28 EUR to little more than a euro, 1.08. Ornamental plants can cite the example of the mimosas which have come down from 2.10 EUR/unit to 1.84 in 2009. Profitability problems worsen to a situation of high costs of production (increase in the price of gas, diesel fuel and other inputs) and the fact that the industry of flowers and plants get all their income from the market without receiving any kind of help from Brussels. In addition, foreign trade has stagnated over the past year. The export of living plant was reduced by 7%, standing at 163 billion euros while exports of cut flowers registered a decline of 18% compared to 2008, totaling € 27.6 million.

This joins the unfair competition of imports from countries such as Colombia, Kenya, Israel and Morocco, with tariff advantages, with significantly lower prices based on low costs supported in the social, labour and environmental dumping.