Long-term stability of European fresh produce compromised by COVID-19, flag sector reps

09 Apr 2020 --- The growing financial burden being carried by the European fresh fruit and vegetable sector is being flagged by representatives of the farming sector working to sustain productivity amid the COVID-19 pandemic. The EU’s fresh produce association, Freshfel, is the latest industry body in a string of agri-food organizations calling out to central government for aid. Freshfel Europe is urging new support measures to secure the supply of fresh produce to consumers over the coming summer months and further into the latter half of 2020.

Freshfel Europe is particularly concerned about the rising costs associated with the implementation of necessary measures across the supply chain to cope with the pandemic as well as current and future non-harvesting of products if seasonal workers are not available are set to have considerable ramifications for the long-term stability of the sector. 

“Despite providing an uninterrupted supply of fresh, safe and high-quality fresh produce to consumers throughout the COVID-19 pandemic so far, the European fresh fruit and vegetable sector is facing significant challenges. Although the sector is well organized and committed to its responsibility to provide fresh produce to consumers confined at home the effects of the pandemic are being felt by all actors in the supply chain,” the agri-food body stresses.

Click to EnlargeFreshfel Europe flags that no further support has been granted under the Common Agricultural Policy (CAP) to producers and producer groups to reflect current increasing costs to guarantee the continued supply of fresh products to consumers.The availability of seasonal workers is still insufficient in many places, it continues to emphasize. “This workforce is key for planting, preparing orchards, preventing non-harvesting and picking quality products now and later in the year. Efficiency in orchards and pack houses has decreased due to social distancing rules and with the provision of safety equipment and new packing requirements other challenges are being encountered.”

Sector representatives under FoodDrinkEurope, through joining forces with European trade union groups, have previously shared a similar sentiment. As countries go into lockdown and quarantine measures are in place across the continent, the industry bodies underscored that the entire food and drink industry (including finished products, ingredients, packaging and transport) must be regarded as “essential.”

Earlier this month, the European Commission (EC) secured an operation framework for intra-EU trade and measures for seasonal workers. However, Freshfel Europe flags that no further support has been granted under the Common Agricultural Policy (CAP) to producers and producer groups to reflect current increasing costs to guarantee the continued supply of fresh products to consumers.

“More incentives through CAP instruments – on top of those released by the European Commission on April 6 – are needed for the sector, especially for growers, to cope with the current financial pressure. As these are essential goods, maintaining the long-term supply of healthy fresh fruit and vegetables to the European market is essential,” the organization maintains.

Growers, in particular, are being confronted with a significant increase of new necessary costs, often by more than 10 percent, which are not being entirely returned or compensated. Logistics costs in the chain have also increased by 20 to 30 percent due to empty returns of trucks and longer journey times. 

Next to these issues, significant losses are being experienced with the closure of the European food service industry and street markets, with wholesalers consequently also losing a significant amount of business. In total, this market segment covers 25 percent of fresh produce consumption and retail chains are not absorbing all of this volume. 

Meanwhile, European retailers have had to adapt stores with personal safety measures such as flexi-glass at cashiers and limiting shopper numbers. In addition, risks for products to be successfully exported globally are increasing and importers are experiencing high uncertainty in terms of delivery and time required for documentation checks.

Click to EnlargePreviously, European agri-food body Copa-Cogeca warned industry about “deteriorating” conditions in the meat and dairy markets.Previously, European agri-food body Copa-Cogeca warned industry about “deteriorating” conditions in the meat and dairy markets, which are weighing prices down at a time of year that represents peak season. It also flagged how the beef market is suffering and wants to see “storage aid” for prime cuts of meat that currently have no markets. On top of this, sheep and goat, which would usually be eaten during Easter festivities, is being hampered. Because of the seasonal nature of this, it cannot be pushed back to another time of the year. 

“This increasing burden on the supply chain is set to have considerable ramifications for the long-term stability of the sector. In light of mounting uncertainty about the future of the sector, Freshfel Europe calls for continued and new support measures to secure the supply of fresh fruit and vegetables to consumers over the coming summer months and into the latter half of 2020,” the association concludes.

As previously reported on FoodIngredientsFirst, potato growers across Europe are currently facing huge losses and a dire forecast of a one million metric ton surplus of French fries. Pandemic concerns contributed to a World Food Price dip in February. 

For more of these coronavirus-related updates, readers may visit our new daily news feed entitled “COVID-19 updates,” for relevant insights needed to guide your business through this challenging period. 

By Benjamin Ferrer

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