WHEN THE prices of local fruit and vegetables are high, some newspapers carry indignant reports claiming that we are paying gold for a kilo of cucumbers or tomatoes. When the prices of the same products are low, the same newspapers carry indignant reports claiming that farmers are on the verge of bankruptcy because they are being paid a pittance for their produce.
In the last couple of weeks we have witnessed the latter case. ‘Price of vegetables in free-fall’ read a Tuesday headline.
The following day, a headline read: ‘Cry of despair by Cypriot farmers’, and it said that producers were selling vegetables at below cost prices.
It seems the indignant reports are unavoidable, regardless of which direction fruit and vegetable prices go.
But can we have it both ways? Is it possible for the prices of farm produce always to be high enough to satisfy the farmers and low enough for consumers not to feel that they are being ripped off? We think not, even though some newspapers make it seem as if this were possible. The truth is that prices are determined by supply and demand and these fluctuate seasonally.
Earlier in the year, there was outrage because a kilo of cucumbers would cost €7; now that there is an abundant supply, the cost is less than a euro, which is great news for consumers. It is poor form for farmers to complain now, because they cannot always benefit from high prices in a market economy. Many times they have only themselves to blame as their choice of crops is on expected revenue. A few years ago, during an extended drought, farmers thought that the price of watermelons would be high because of the water shortage and many of them planted watermelons. The result was glut, very low prices and great wastage of water during a drought.
Another factor that could contribute to the lower prices could be falling demand. Consumption patterns change during recession. High prices in the past may have forced people to buy frozen vegetables, the prices of which do not fluctuate significantly, making it easier for families to stay within a shopping budget.
Of course once the tourist season arrives, demand for farming produce increases, prices rise and farmers cease their moaning.
After seven years of EU membership, farmers have still not come to terms with the operation of the free market, certainly not when it is pushing down prices. Only when their produce commands extortionate prices are they happy.
