Uncertainty and crisis in agriculture: farmers struggle against price fluctuations.

Andrés Góngora, a farmer from Almería who grows watermelons and melons, has experienced a summer season filled with uncertainties and sharp price changes for his products. "It's been crazy," he says, reflecting the volatility that has characterized the agricultural sector in recent times. Despite starting the campaign with low prices, values can fluctuate by up to 50% in a matter of days. This oscillation is particularly disconcerting for a product that is generally not as perishable as others, adding more pressure to a farmer who is already facing a complicated economic situation. The increase in production costs is one of the factors that most concerns farmers and ranchers. Data from the Ministry of Agriculture is revealing: while final agricultural production has grown by 47% in the last decade, spending on production means has exceeded 50%. This indicates that although farmers are producing more, they are also investing increasingly to sustain their operations. The situation is further aggravated by the reduction in employment in the agricultural sector, which has fallen below one million workers, an unprecedented negative milestone in the 21st century. According to Professor Dionisio Ortiz, this phenomenon is not new and is rooted in the so-called "farm problem," which suggests that food prices increase at a slower pace than production costs. This situation, combined with a changing and increasingly erratic climate, sharpens price volatility for both inputs and agricultural products. This instability not only affects producers but also generates uncertainty among consumers, who see the prices of their shopping baskets skyrocketing. Behind this issue is a phenomenon of concentration in the agricultural sector. A small group of multinational giants controls a significant portion of the supply chain, from seeds to machinery. Companies like Cargill and Bunge dominate the market, giving them significant power to influence prices. A report from IPES Food highlights that these companies control up to 78% of the agrochemical market and 72% of animal medicines. This oligopoly in agricultural production and distribution further exacerbates the situation for farmers, who see their profit margins shrink under the pressure of prices set by these giants. The recent acquisition of Viterra by Bunge for 7.6 billion euros illustrates how these corporations continue to consolidate. The European Commission authorized the operation in record time, which has sparked criticism over the lack of scrutiny regarding how these multinationals determine prices. Critics argue that this concentration can lead to greater control over prices, resulting in a vicious cycle that favors large companies at the expense of small producers. In the Spanish context, the situation is further complicated. Large retailers, represented by chains like Mercadona and Carrefour, set prices in the field, limiting farmers' ability to achieve fair profitability. The demands of these large buyers directly impact the decisions of farmers, who are forced to rethink their crops and adapt to a market that does not favor them. In light of this scenario, many farmers choose to abandon lower-quality lands or diversify their crops to mitigate risks. However, this is not enough. Production costs remain high, and pressure on labor and input prices persists. The situation is critical for sectors like wine, where grape growers face prices that do not cover their costs, leading to discouragement in a sector that has traditionally been a pillar of Spanish agriculture. Despite the adversities, the cooperative sector presents itself as a viable alternative. With more than 3,700 cooperatives in the country and a turnover exceeding 40 billion euros, this model allows farmers to join forces and negotiate collectively. Cooperatives like AN and Dcoop are making significant strides to counteract market concentration, offering their members better prices and access conditions for resources. However, the cooperative world is not without criticism. Some agricultural leaders believe that cooperatives should focus more on marketing and finding solutions that benefit small farmers, rather than concentrating on bureaucratic procedures or seeking aid. The need for adaptation and response to market dynamics is crucial to ensure the viability of Spanish agriculture. In conclusion, the interconnection between large multinational groups, price volatility, and pressure on production costs has created a complicated landscape for farmers. While cooperatives offer an alternative, it is clear that more effective strategies must be implemented to guarantee a sustainable and profitable future for the agricultural sector, which is fundamental not only for the economy but also for the country's food security.