This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at COAG estudia movilizaciones por los bajos precios del aceite de oliva en origen

COAG studied mobilizations by the low prices of the olive oil in origin

11/02/2011

February 11, 2011

The Coordinator of organizations of farmers and cattlemen (COAG) studied mobilizations against the low prices of the olive oil in origin and therefore sectors of olive groves of the different regional unions, maintain extraordinary meetings throughout this week. In addition, COAG will work to achieve the unity of all the production sector.

The situation in the country is unsustainable after three campaigns straight to selling below cost; the growers already accumulated losses EUR 1.9 billion. In the last month, the average price has been below 1.85 euros per kilo, according to the Poolred information system, when the weighted average of the cumulative costs of oil of olive oil mill output stands at 2,49 euros per kiloAccording to the value chain study carried out by the Observatory of prices of food of the Ministry of the environment, Rural and marine (MARM). "We have prices well below the average values of oil production, which means heavy losses for the Spanish producers, while the functioning of the market is fluid, with record exports, showing a strength of demand has no reflection in price"Gregorio López, responsible for the sector of the olive grove of COAG has argued. The agrarian organization has demanded repeatedly the urgent activation of private storage, for being the only instrument which would allow the immediate revival of prices in origin. "The Ministry must increase pressure on the European Commission and get putting in place of this measure." "Everything that should be done without losing sight of the objective, which is absolutely vital, establish private storage activation prices more in line with the current reality of the production costs and flexibility in the operation of the system", said Lopez. Currently, the threshold that triggers automatic private storage is in 1, 77 euros per tonne of oil extra virgin olive and INE EUR per tonne for Virgin oil and 1.52 for lampante, far removed from the costs of the sector prices.

We must remember that two years ago, and even while private storage was activated very late (in the month of July), only the announcement of his release under way already led to a rise of 26% of the price (from the 1.61 euros per kilo to the 2.03).