Farmers march on Madrid
Low prices, increasing costs and the higher minimum wage lead to first protest against new government
THE NEW left-wing coalition government between PSOE and Unidas Podemos is facing its first major conflict.
Farmers marched through main streets of Madrid and cut-off traffic around the busy Atocha railway station roundabout on Wednesday on the way to the nearby Ministry of Agriculture and Fisheries to demand urgent action.
They claim the new rise in the minimum wage in Spain to a gross €950 is the main reason why around 45,000 jobs have been lost in the agricultural sector in January alone.
Farmers say the increasing labour costs added to the extremely low prices distribution companies offer, increases their loses and makes many farms unprofitable.
Government blames supermarket chains
The government has denied the minimum wage rise is the reason for the loss of jobs in the sector and has passed the blame onto major distribution companies and supermarket chains offering prices below the cost of production.
A poor harvest in many farms due to recent storms and floods has also been blamed for the negative results.
Agriculture minister Pedro Planas announced a he would be calling the main distribution companies in Spain to meetings to set minimum prices for agricultural goods produced in Spain - similar to the system current in place in France.
Meetings with the minister began on Wednesday afternoon with Carrefour Spain bosses, but at the end of the encounter they refused to comment on the outcome.
Meetings with Mercadona, Dia and Lidl will follow over the next few days, but initial comments from sources close to these distributors also pass on the blame saying they themselves operate on very low profit margins and, as one company spokesperson put it: "Fruit and vegetable don't appear on the shelves by magic."