“The agri-food sector must build alliances that strengthen all the links in the chain”

A product can not start the chain without a price, just as it can not lose returns for the farmer as he moves on his way to the consumer.

By Marga López, agrifood journalist

The need to create alliances and work together to build a strong chain, without weak links, is the main conclusion reached today at the BusinessGRO Business Breakfast that took place at the Chamber of Commerce of Seville, organized by Siete Agromarketing and eComercio Agrario with the participation of Asaja SEVILLA. An event that has allowed each link in the chain to explain its position and position, and how certain practices are weakening the production sector. Faced with this complaint, from the distribution advocate not to focus all the attention on prices, inform and train consumers increasingly sensitive to these issues, and work on lasting and strategic alliances that allow all the links to gain strength.

Moderated by Elio Sancho, journalist and head of Economy of the Diario de Almería (Grupo Joly), the gathering began with the words of Gissèle Falcón, CEO of Siete Agromarketing, who has justified this meeting in the current context of low prices and complaints by the lack of profitability for the producers. Next, Artemio del Corral Martín, Territorial Director of Western Andalusia of CajaSur, has highlighted the strong commitment of his entity to the agricultural sector considering it as a thriving economic activity and with a journey. Ricardo Serra, president Asaja SEVILLA and Asaja Nacional, defended in this inaugural table that it is necessary a fair return for the producer so that he can put on the market quality products. “It is necessary to give a return to the chain of value so that there is profitability for all the links”. Finally, Mrs. Carmen Cristina de Toro Navera, Director General of Industries, Innovation and Agrifood Chain of the Ministry of Agriculture, Livestock, Fisheries and Sustainable Development of the Junta de Andalucía, has justified the commitment of the Ministry to this type of events , on the context that the agri-food sector is the largest exporter of the Andalusian economy, a strategic sector for the community. However, he said that “you can not understand that it is sold cheaper than what it costs to produce”

B2B interview

To talk about the consumer, and the perception that this has of the chain and price formation, Juan Moreno, General Secretary of the Consumers Union of Andalusia has been interviewed by Elio Sancho: “We must show and allow the consumer to approach the chain. It is true that it is closer to the distribution, but when there are imbalances, the most distant links (producers and consumers) have to approach, and show their concern that the farmer obtains profitability for his activity, “said Moreno, who has continued by stating: “the consumer is very sensitive to this price differential, so we have to explain things to him and until now nobody has bothered to explain how prices are formed”.

Expert Group

This was the highlight of the day, a panel of experts where all the links of the chain have been represented, and whose components have been able to discuss aspects that unite them, separate them and common lines in which they must continue working to articulate a strong chain and where no links are weak: “If we have a weak link, Víctor Yuste, General Director of the Interalimentary Forum, has argued, we will have a weak chain, hence the need to articulate tools that allow us all to strengthen positions, gain in efficiency and profitability. Together we will go further. ”

For its part, Purificación González Camacho, Deputy Director General of Food Chain Structure of the Ministry of Agriculture, Fisheries and Food, wanted to highlight the important steps that the administration has taken in recent years, with a Law of the Food Chain “that it has incorporated mandatory instruments that are giving stability to the sector “. At this point, Ricardo Serra, President of Asaja SEVILLA has ruled that “the Law of the chain is very good, but it is not fulfilled. Thats the reality”. It is said that a greater integration of the producers is the solution, but for Serra it goes through arbitrating more mechanisms to balance the negotiation with the distribution. Francisco Sánchez, manager of Onubafruit, wanted to refute this argument, exemplifying the success of his organization, a second-tier cooperative with the ability to negotiate before distribution. Sanchez has also launched the reflection that consumers do not complain when prices are low, and it is at that time when more damage is done to producers.

For Felipe Medina, head of the Agrifood Chain of ASEDAS (Spanish Association of Distributors, Self-Service and Supermarkets), we must change the discourse that distribution is to blame for everything. “We are one more link, and our vocation is to provide ourselves with a national product and for producers to strengthen their position, obtain profitability. It is a reality that the volatility of prices is higher in origin than in distribution, that is why we have to focus the effort. Look for tools to prevent the producer from weakening, such as the product entering the chain without a defined price “.

Consumers do not complain when prices are low, and it is at that moment when they hurt most producers

The key is therefore to look for stable prices, offering healthy, safe and quality food, and that should be, according to Víctor Yuste of Foro Interalimentario, the point of union on which the relationships of the value chain should be based , identify inefficiencies and eliminate everything that does not add value.

The event, which could be followed live through social networks under the hashtag #BusinessAGRO, and has had two luxury sponsors, Forum Interalimentario and CajaSur, as well as Onubafruit as a collaborator, gathering in the Chamber of Commerce of Seville more than 100 guests, of the highest level, and with Media Parnert coverage as Grupo Joly, Fruit Today, Cuaderno Agrario and magazine eCA FRUITS.