COAG: “Agriculture does not specify the mechanism that prevents oil price volatility”

The Coordinator of Farmers and Livestock Organizations (COAG) has denounced that the Ministry of Agriculture, Fisheries and Food has not specified the mechanism that can avoid the volatility of olive oil prices in the future for two years.

COAG has asked the Department headed by Luis Planas to specify the figures and specific cases of automatic activation of the market regulation mechanism that allows the mandatory temporary withdrawal of products to achieve price stability.

He also recalled that, in situations of clear risk of imbalance in the olive market, the Council of Ministers approved in 2021 a royal decree that allows the Ministry to approve a temporary withdrawal of the product on a mandatory basis for all operators until the following campaign.

COAG has stressed that “the problem is that the decree does not establish figures nor specify the cases in which this intervention can occur, an issue that should have already been defined by the Ministry of Agriculture.”

In a meeting held yesterday COAG asked the Ministry “to get to work and urgently finalize the development of the standard.” What’s more, the person in charge of the coordinator’s olive grove, Juan Luis Ávila, highlighted that “with a strategic ‘stock’ of stored oil, it will be possible to guarantee price stability for farmers and avoid such sharp upward fluctuations for consumers, such as current.

Lack of oil

According to Ávila himself, all of this is a rule designed to avoid price volatility, with which the farmer can ensure price stability vital for his subsistence, while at the same time it represents a benefit for consumers, which is not will be subject to price fluctuations in an essential product.

“In fact, if this standard had been approved several years ago, when a historic oil harvest was recorded in Spain (2013-2014), the price crisis that the sector experienced for three long years would not have occurred,” he recalls. And, according to him, since the amount of oil necessary to give stability to the market could have been removed from the market, in a mandatory and automatic manner. “And now, we would not have such a pronounced increase in consumer prices due to lack of oil due to drought.”

It is worth remembering that last month, the head of the Food Technology Area and the R&D Research Group of Ctaex ​​and an expert in the sector, Alfonso Montaño, predicted that, in the short term, the price of olive oil. “I don’t expect a price drop, in fact, the ideal would be for the price to remain below ten euros,” he said.

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