SPAIN

Spanish cooperatives demand urgent measures due to the impact of the war in Iran

Spanish Agri-food Cooperatives have conveyed to the Minister of Agriculture their concern about the impact that the conflict in the Middle East is having on the sector, especially due to the increase in energy costs, fertilizers and the growing logistical difficulties.

Posted on Mar 19 ,07:25

During the meeting, Ángel Villafranca, president of Agri-food Cooperatives of Spain, warned of the difficulties cooperatives are facing in supplying products due to the sharp increase in domestic and export transport costs, a situation that is already causing orders to be blocked. He also emphasized the sector's loss of competitiveness, since the increased input costs cannot be passed on to the customer in most cases, as these are pre-set prices.

Given this scenario, Villafranca proposed a series of urgent measures to mitigate the impact of the crisis. Among them, he called for controls on fuel speculation and an investigation by the National Markets and Competition Commission into possible anti-competitive practices. He also insisted that any potential aid for diesel B should not force companies to advance the funds, as happened with the 2022 subsidy, which resulted in a significant financial burden, administrative complexity, and delays in reimbursements, even forcing many cooperatives to resort to legal action. He also requested a study of tax measures to help contain hydrocarbon prices.

Regarding fertilizers, the Spanish Agri-food Cooperatives Association requested measures to guarantee their supply, including the elimination of the decarbonization levy and tariffs at the European level, and direct aid to fertilizer-consuming producers who could be identified through field records. Furthermore, it advocated for the promotion of organic fertilizers of animal origin, especially those from biogas plants, which are currently restricted by regulations and therefore impossible to market. Villafranca requested the design of a risk management system that would allow for strategic reserve planning, minimizing any impact on the affordability and availability of fertilizers. He also emphasized the need to facilitate farmers' access to fertilizer advisors, particularly within cooperatives, where such advisors will become mandatory in 2027. 

He also requested loans and guarantees tailored to cooperatives, as well as temporary tax reductions. Villafranca pointed out that the cooperative's debt ultimately becomes the debt of its producer members, weakening the viability of their business and its primary means of purchasing production, processing, marketing, and providing professional services. 

In this regard, he stressed that the objective is to guarantee the continuity of the commercial and service structure that cooperatives provide to their members, as a key element to maintain productive activity and the stability of the sector.

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