Cooperativas Agro-alimentarias de Castilla-La Mancha values the efforts made by the Ministry of Agriculture of the Spanish Government and the JCCM to establish a comprehensive package of support measures for farmers and pastoralists affected by the drought, but warns that they Other extraordinary support measures are needed with the aim of preserving the activity of food cooperatives, which are excluded from the current measures approved by the Central Government as well as those announced so far by the Government of Castilla-La Mancha.
Although farmers and livestock farmers receive direct assistance, they also have to bear fixed expenses from their cooperatives (amortization, financial expenses, permanent staff, advanced financing to their producers in the form of input supplies, etc.), which cover their costs. will reduce significantly. Drought spurs activity, as has already happened in grain cooperatives, which will receive just over 20% of regular crop production from their members, report the cooperatives in a statement.
Cooperatives are vital to recovery from the current situation in the medium term, they are pivotal in ensuring the proper functioning of the food supply chain and ensuring market profitability for farmers and ranchers.
Furthermore, they caution that a significant portion of the more than 6,500 workers in cooperatives in the region could be affected by employment regulations if they do not have support to offset the myriad losses agri-food cooperatives face. Drought that, if it lasts longer, will affect not only grain production, but also fruit and vegetable crops, vineyards, nut and olive groves.
The Cooperativas Agro-alimentarias de Castilla la Mancha has submitted to the Ministry of Agriculture, Water and Rural Development a list of possible assistance to cooperatives affected by drought based on declines in product inputs, such as direct assistance to offset ongoing costs campaign, as well as other social, financial and financial incentives under preferential terms.
Cooperativas Agro-alimentarias de Castilla la Mancha is aware of the complexity of the situation and advocates that the support designed has a palliative part for farmers’ farms and the most affected areas, but also a structural part that Preserves activity agri-food companies for next season, preventing the effects of this crisis from persisting next year and again affecting the 158,645 families and 6,500 jobs supported by these social economy companies, as well as feeding our country supply structure as well.