Agricultural crisis in Spain: producers trapped between uncontrollable prices and costs.

The situation in the agricultural sector in Spain has turned into a real labyrinth for producers, who find themselves trapped between price volatility and rising production costs. Andrés Góngora, a farmer from Almería who grows watermelons and melons, describes his experience this summer as "madness," reflecting the instability that characterizes the industry. Despite a good harvest, Góngora feels unable to make a clear judgment about the campaign's performance due to drastic price changes that can vary by 50% within days. This phenomenon is not exclusive to fruits but also extends to other agricultural products such as cereals and nuts, creating a sense of despair among farmers. The increase in production costs has become one of the main concerns for the agricultural sector. According to data from the Ministry of Agriculture, agricultural final production has grown significantly over the last decade, rising from 44 billion to 65 billion euros, which represents a 47% increase. However, expenses on production inputs have risen even more, exceeding 50%, which has led many farmers to find themselves in an unsustainable financial situation. This contrast between production and costs has resulted in, for the first time this century, the number of people employed in the agricultural sector falling below one million. The situation is exacerbated by the observation that food prices tend to grow more slowly than production costs. This phenomenon, known as the "farm problem," is a concept that economists have studied for decades. Currently, climate change and other factors have created a more volatile environment, further complicating the situation. The erratic rise in input and agricultural product prices has destabilized farmers' forecasts, who struggle to keep their operations profitable. The market dominance of a small number of large multinational corporations is another factor that profoundly impacts the sector. Companies like Cargill and Bunge control a significant portion of the seed, fertilizer, crop protection, and agricultural machinery markets. A recent study reveals that a few companies dominate 38% of the fertilizer market and 78% of the agrochemical market. This market concentration creates additional pressure on farmers, who must adjust to the prices set by these corporations. The recent merger of Bunge with Viterra, authorized by the European Commission, is a clear example of the growing power of these corporations. With a combined revenue exceeding 110 billion euros, the resulting company becomes a key player in the food supply chain, with direct influence over the prices farmers receive. Such corporate operations raise concerns among various groups, who argue that these mergers exacerbate market structure and limit options for local producers. Meanwhile, Spanish farmers face a double challenge: on one hand, the increase in production costs, and on the other, the pressure from large distributors who determine selling prices. Companies like Mercadona and Carrefour dominate the domestic market, giving them considerable power to influence the prices farmers receive for their products. This imbalance has led many producers to reconsider their production and marketing strategies. In light of this scenario, many farmers are opting for adaptation measures, such as discontinuing cultivation of lower-quality land or varying their agricultural practices to reduce costs. However, this adaptation is not sufficient for many, as the prices of the products they grow often do not cover their expenses. The lack of profitability has led sectors such as viticulture to face an increase in the abandonment of farms, while prices in the restaurant market continue to rise. One avenue that has gained prominence in this context is the strengthening of agricultural cooperatives. In Spain, there are around 3,700 cooperatives that represent a response to the problem of market concentration. These organizations allow farmers to channel their resources more effectively and coordinate their sales, giving them greater bargaining power against large distributors. With a turnover exceeding 40 billion euros, the cooperative movement presents a viable alternative to face current challenges. However, cooperatives also face criticism for their focus on managing aid and financing, rather than concentrating on marketing and seeking better prices for their members. As the pressure from the global market continues to increase, it will be crucial for these organizations to adapt and evolve to ensure the sustainability of the agricultural sector. In summary, the situation in the agricultural sector is delicate and complex, marked by a combination of factors ranging from price volatility and rising costs to market concentration in the hands of large corporations. The need for a coordinated and effective response from farmers, as well as the adaptation of cooperatives, becomes increasingly urgent. Without a clear strategy to mitigate these challenges, Spanish farmers risk being strangled by a constantly changing market.