Pomegranates: €397 for 16,220 kg at farm gate vs €2.29 retail

Farmers receive €0.024/kg while supermarkets sell pomegranates at €2.29. The unexplained margin between production and retail raises concerns.

English · Original discussion in Spanish · Published

Pomegranates: €397 for 16,220 kg at farm gate vs €2.29 retail
Pomegranate orchard: 16,220 kilos yield just €397

16,220 kilos of pomegranates. €397. That breaks down to €0.024 per kilo, two and a half cents. This is the payment received by an owner of about 800 trees across two hectares. These young trees produced their first harvest, but due to lack of size, the cooperative sent the entire crop to industrial processing. On the same shelf where this lot was sold, table-grade pomegranates were priced at €2.29 per kilo. Between these two extremes lies a margin that no one has yet been able to explain with numbers.

Farm-gate price: €0.024 per kilo

The producer does not dispute that undersized fruit is worth less than table-grade fruit. What bothers him is the magnitude. The harvest was sold [Bon the tree[/B]: without labor costs for picking, transport, refrigeration, or waste assumed by him. The cooperative weighed and paid. He did not even know the price before harvesting, admitting that had he known, he would have left the fruit hanging or sought another buyer. Against those €397, there is a cost he controls: €600 for irrigation water and a pending bill of around €200.

The crop was not planted for this outcome. Pomegranate trees replaced orange trees with the expectation that the kilo would be paid at 60 cents, twenty-five times what was finally settled. Removing citrus trees, planting new ones, pruning, and maintaining them was delegated to an experienced agricultural technician who, however, had never commercialized pomegranates. It was decided this way, without a formal antiestéticasibility study for two hectares, with a modest goal: for the farm to cover its own expenses.

From 2 cents in the field to €2.29 in the supermarket

What surprised this producer most was the classification. What he is told is worthless fruit is exactly what he sees in Spanish distribution chains. Some calculate that the pomegranate margin multiplies by a hundred between origin and destination, adding a scale factor: 16 tons are not a box or a pallet, they are a full truckload. At that volume, favors are not done; prices are imposed.

International comparisons also appear. A consumer who spent the summer in Germany describes fruit labeled as originating from Spain, with quality similar to the best local produce, at slightly lower prices than in Spain and with much higher salaries. The implicit conclusion is uncomfortable: someone is paying for the inefficiency of the middle stretch, and it is not precisely the one providing the water.

Why doesn't the farmer sell his fruit directly?

Short answer: because it isn't free and doesn't always pay off. Proposals range from farmers' markets to shared stalls among producers, direct sales via messaging networks, or short channels in a commercial space open two days a week. The economic argument has logic: if the supermarket sells at €2.29, a wholesaler buying at 50 cents still makes money, and the farm would earn twenty times more.

The brakes are requirements and structure. Food handler certification, social security registration, sanitary registry, and municipal license. Part of the discussion centers on whether the farmer already meets several of these through regular activity. Another part warns of the obvious: setting up a sales point requires workers, transport, and packaging, costs that small production cannot cover. The interested party settles it: he has another business, does not live off the land, and will not open a fruit shop to dispose of 16 tons.

The role of subsidies and crop restructuring

Another line of analysis argues that the real profitability of many woody crops lies not in sales, but in the [ICAP[/I] (Common Agricultural Policy) and restructuring plans: pulling out a plantation and replanting generates aid. It is claimed, without verification, that removing pomegranate trees would yield more money than the harvest itself. It is a generic suspicion, not verified in this specific case, but circulates naturally in a sector where settlement prices and final prices barely communicate.

Costs of maintaining a young pomegranate plantation

Water, pruning, removal of previous trees, and planting new ones. All that was paid for. The initial calculation was simple: at 60 cents per kilo, the farm sustains itself. At two cents per kilo, not even irrigation. The lingering question is whether the first harvest of young trees is a temporary bad data point or a preview of the model.

Where the account gets stuck

The producer rejects the victim label: he presents facts, not complaints, and hopes next year brings more kilos and better size. No one has yet given a figure that closes the gap between the two prices. It is not why an undersized pomegranate is worth little. It is why that same undersized pomegranate, leaving the cooperative at €0.024, reappears on the shelf at €2.29. There, available analysis ends, and another begins.

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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (138 replies).

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