A SURPLUS production of watermelons will drive 2,000 tonnes back into the ground to rot this season in an effort to balance flagging market prices. Fruit producers are exasperated, as the bout of heavy rainfall and good weather has led to a surplus production of 5,000 tonnes, threatening market saturation and unprofitable price levels.
Deputy Head of the Agriculture Department Thomas Papandreou said yesterday that if the excess watermelons were dumped on the Cypriot market, wholesale prices would fall short of covering producers’ costs, creating a loss for them. One retailer from the Ayios Antonios market in Nicosia said the low price of watermelons was having a knock-on effect on higher priced goods, leaving many to rot.
Papandreou explained that exporting the surplus would not be in the best interests of the government or the producers given the time of year and the cost of transportation, noting that 1,800 tonnes had already been exported this year.
Exports after May or June prove no longer remunerative, since Greece or Spain have the greater advantage of lower transport costs to satisfy the market, said Papandreou. He maintained transportation costs, subsided by the government at £75 per tonne, were higher than production costs, making it unprofitable and costly to encourage exports at this time of year.
“We are entering a demanding market. For our producers to remain competitive, they need to be better informed and more organised in order to gain the experience that will sensitise them to market forces,” said Papandreou. “This is why we are given five years’ harmonisation period from the EU, to change our way of thinking and gain experience.”
The Chairman of the House Agriculture Committee, Christos Mavrocordatos of AKEL, said some of the surplus production needed to be destroyed and the producers compensated to bring equilibrium in the market and balance the price. He acknowledged watermelon cultivation was highly water intensive and proposed farmers be compensated for the destruction at £75 per tonne. Mavrocordatos attributed the problem to the absence of a proper agriculture policy, which would oversee production and consumption. He expressed the need for greater planning and consistent pricing to avoid the “anarchic functioning of the current market”.
“Farmers do not want to destroy their yield, they just want to make a living,” said Mavrokordatos, adding: “The state has a responsibility to inform farmers of commercial trends.”
He maintained confusion existed between the two ministries of agriculture and commerce in their responsibility over production and consumption respectively.
The opposition deputy claimed the markets for basic agricultural products such as potatoes, oranges and grapes were not going well. The consequences for the economy and the environment would be far-reaching if farmers left the agriculture sector, he warned. “The agriculture industry is sending out an SOS to the government, requiring proper agriculture planning,” said Mavrokordatos.
But an official from the Commerce Ministry maintained that government intervention was not always helpful. He said the solution was voluntary producer organisations, like those that existed in Europe, whose primary duty was to plan production in stages. He explained if individual producers grouped together in independent organisations, they would benefit from discipline, planning and marketing advice, thereby playing a vital role in accelerating harmonisation to the EU.
Legislation covering recognition criteria for voluntary producer organisations will be reviewed this Monday. The organisations will be funded by the government before accession to the EU and then by the EU under its common agricultural policy.
The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.
