Portuguese farmers demand €140 million package to offset rising costs

Portuguese farmers are demanding a €140 million support package from the government, warning that rising production costs are making it increasingly difficult to compete with neighbouring Spain.

Around 150 leaders of agricultural and forestry associations gathered outside Parliament in Lisbon on Monday as part of an initiative organised by the Confederationof Portuguese Farmers (CAP).

A delegation led by CAP president Álvaro Mendonça e Moura presented its demands to parliamentary groups from PSD, Chega, PS, IL and CDS, arguing that urgent measures are needed to restore more equal competitive conditions. CAP had announced the €140 million demand following an extraordinary meeting of its Council of Presidents in late September.

“What we want is not subsidies; what we want is for Portuguese farmers to be able to compete with farmers from other countries,” Mendonça e Moura said.

CAP argues that farmers have been hit particularly hard by higher energy, fertiliser and other production costs, while claiming support available in Portugal has fallen short of measures introduced elsewhere – particularly in Spain.

“We cannot understand this paralysis on the part of the government and, obviously, we cannot accept it,” the CAP president said.

He warned that the disparity was hurting Portuguese products both at home and in export markets and raised concerns over the longer-term consequences for domestic food production.

“No country can abandon its primary sector – in this case, the food sector,” he said.

CAP wants Brussels mechanisms fully used

Among its demands, CAP wants Portugal to make fuller use of exceptional support mechanisms made available at European level.

In July, the European Commission approved €540 million in emergency aid for EU farmers affected by higher fertiliser and energy costs, including around €9.46 million for Portugal. Member states are allowed to supplement their EU allocation with national funding of up to 200%.

CAP says Portugal is not taking full advantage of the available mechanisms and argues that this is widening the gap with competitors.

The confederation is also calling for changes to electricity contracts so that farmers can adjust their contracted power according to the seasonal nature of agricultural production – a change Mendonça e Moura said would carry no cost for the State.

“With production costs at this level, it may not be profitable for many farmers,” he warned, adding that smaller producers are particularly exposed because they have less ability to pass higher costs on to consumers.

CAP also wants beekeepers included in exceptional support schemes, warning that the sector has so far been left out.

The confederation says the €140 million package is necessary to protect domestic production and restore competitiveness.

However, Monday’s demonstration may not be the end of the dispute.

Mendonça e Moura said CAP hoped the action would mark a turning point in the government’s response but warned that further protests could follow if farmers’ demands are not addressed.

Source: LUSA