In recent months, the agro-livestock sector has had to face critical situations. To the structural problems of rigidity of the demand, atomization of the operators, the seasonality or the perishable character of the productions, conjunctural factors have been added such as adverse climatic phenomena, tariffs of the United States Administration, the fall of prices of the productions and the rise in the costs of agricultural inputs (diesel, fertilizers or feed).
For all these reasons, Royal Decree-Law 5/2020, according to the Minister of Agriculture, Fisheries and Food, Luis Planas, provide solutions “to promote the equitable distribution of added value and rebalance the food chain; improving negotiation capacity of the weakest links, and the strengthening of the competitiveness of agricultural and food operators “.
What are these measurements
- Mandatory inclusion of the effective cost of production as a factor in determining prices in agricultural contracts and that the agreed price covers the effective cost of production.
- Ban “loss selling”
- Regulate trade promotions to avoid the banalization of agricultural products and food
- Publicize the sanctions imposed on companies that do not comply.
- Measures to face aging and enhance the generational change.
According to the Ministry, these points included in the decree will improve the operation of the sector, allow the survival of a living rural environment and “recognize and dignify the work of our farmers and ranchers.