The Minister of Agriculture, Fisheries and Food, Luis Planas, has made a commitment to farmers to thoroughly examine the costs they incur at the source and to take stronger action against companies that force them to sell at a loss. This was the main topic of discussion at a meeting held on Wednesday, which brought together professionals from the primary sector and representatives from different links in the food chain.
However, this commitment is just the beginning. The meeting served as a preliminary discussion before a larger meeting scheduled to take place at the Ministry’s headquarters the following day. At that meeting, Minister Planas is expected to propose a set of concrete measures in response to the demands of the agricultural sector and to calm ongoing protests in Spain, which have been taking place for over a week. Despite this, major agricultural organizations anticipate that the government’s offer will be deemed “insufficient,” and protests are likely to continue as planned.
Although the meeting was already scheduled prior to the start of the European protests, in the current context it has taken on significant importance. The Food Chain Observatory, which meets biannually and is attended by representatives from all sectors of the food industry, serves as a space for discussing issues and finding solutions. Expectations were high for the meeting, but it mainly focused on technical matters and did not generate many headlines.
According to sources present at the meeting, Minister Planas announced that his team is already working on the creation of a cost observatory to monitor the cost pressures faced by producers at the source. Additionally, it was announced that the Food Information and Control Agency (AICA) will increase inspections and investigate the relationships between companies and their suppliers to ensure compliance with the Chain Law, which prohibits selling at a loss. This practice often forces farmers to lower their prices and sell below cost.
The introduction of a cost observatory has been welcomed by representatives from the agri-food sector, who believe that it will provide transparency in price setting and contract negotiations by taking energy, feed, and fertilizer costs into account. However, some organizations question the time it will take to produce these statistics, as it involves substantial work and will not be published immediately.
Farmers and other companies in the sector support the intensification of inspections to ensure compliance with the Chain Law. However, they demand greater sanctions for companies that violate the law and that producers be compensated for their financial losses resulting from these practices. Minister Planas defended the effectiveness of the Chain Law but acknowledged the need to strengthen its enforcement. He urged agricultural organizations, viewed as the “weakest link” in the chain, to formalize complaints from their members to the competent authorities. He also urged regional officials to intensify their efforts in controlling and processing complaints, ensuring confidentiality to protect the filer’s identity.
During the meeting, two studies were presented on the evolution of food and beverage prices and consumption habits. The study on price evolution, conducted by the INE, revealed that food prices saw the highest increase in the Consumer Price Index (CPI) in 2023, with a rate of 11.7%. Processed foods experienced a higher increase (13.3%) compared to fresh foods (9.3%). The agricultural sector highlighted that the year ended with a 7.3% year-on-year increase in the CPI for food and non-alcoholic beverages, significantly lower than the 15.4% recorded in January 2023.
Furthermore, a report from consulting firm Kantar on food consumption in 2023 indicated that household purchasing volume had stabilized. It also noted a slowdown in the price increase during the last weeks of December and a growing preference for private label options when purchasing packaged products.