`Thousands to Welcome Cioloş in Cordoba Friday with Calls for Storage Aid - Olive Oil Times

Thousands to Welcome Cioloş in Cordoba Friday with Calls for Storage Aid

By Olive Oil Times Staff
Mar. 29, 2011 08:06 UTC

Organizers say 10,000 peo­ple will gather in Cordoba Friday dur­ing a visit by European Commissioner for Agriculture Dacian Cioloş to call for the imme­di­ate pro­vi­sion of pri­vate stor­age aid for olive oil. The action would enable pro­duc­ers to receive pay­ments for keep­ing olive oil in long-term stor­age con­tain­ers, with­hold­ing it from the mar­ket until pric­ing con­di­tions improve. Spanish grow­ers are suf­fer­ing from a pro­longed pric­ing cri­sis dur­ing which it has been com­mon prac­tice to sell olive oil for less than pro­duc­tion costs.

While many have blamed Spain’s pow­er­ful dis­trib­u­tors — a hand­ful of bro­kers that move the world’s largest olive oil sup­ply — some have pointed to the very place of olive oil in the psy­che of Spanish con­sumers who use olive oil prices as a bell­wether, often decid­ing where to buy gro­ceries based on where they can find the low­est priced olive oil. Retailers, for their part, use the sta­ple as a loss leader.

On March 17thCioloş said he would closely exam­ine Spain’s case before an EC man­age­ment coun­cil meet­ing on April 13th. He reit­er­ated, how­ever, that the sit­u­a­tion did not appear to meet the con­di­tions required for the bulk stor­age pay­ments. Olive oil prices in Spain were higher than the trig­ger lev­els and there was no proof of seri­ous mar­ket dis­tur­bance, he said. Those trig­ger lev­els were set in 1998 when pro­duc­tion costs were far lower than present lev­els.

Cioloş rejected ear­lier calls for action in February say­ing that the country’s prob­lem lay with an imbal­ance of power held by dis­trib­u­tors and that the aid was designed to address cycli­cal, not struc­tural, prob­lems.

Organizing Fridays demon­stra­tion in Cordoba were the ASAJA agri­cul­tural orga­ni­za­tions, COAG, UPA and the Andalusian Federation of Agricultural Cooperative Enterprises (FAECA).

Minister of Environment, Rural and Marine Affairs Rosa Aguilar expressed the hopes of the farm­ers, say­ing she hoped Cioloş would bring some good news.”

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