Farmers face higher input costs even as sale prices for their produce drop
Input costs rose in July while the prices paid to producers fell, farmers warn of an increasingly unsustainable situation.
Rising production costs are squeezing domestic fruit and vegetable producers even as the prices they receive fall, according to farmers and official statistics.
The State Statistical Office found that in July input costs for farmers increased by 4.1%, while output prices—the amounts producers get for their products—fell by 5.5%.
Producers describe the situation as crushing for many in the sector. "Herbicides, pesticides, fungicides, those are the preparations we spray, and the seeds... One tomato seed that cost 6 denars went to 9.5 denars. One seed. So not to mention the other things. The nylon, the polyethylene cover that was 200 denars is now 300. Fuel not to mention, from 70 denars now 100. So, these are the inputs that create daily costs for us," says Dragi Pamukov, president of the Macedonian Association of Agricultural Cooperatives (MAZZ).
Prices paid to producers lag behind costs
Pamukov, who cultivates one and a half hectares of garden crops, says almost every input has become more expensive and that, in his experience, input prices rise on average 2–3% each year even as the average pickup price for producers falls.
"Unfortunately, these are some inputs where we ourselves cannot withstand these prices: tomato 20 denars, cucumber 30 denars, eggplant 10 denars, pepper 40 denars, hot pepper feferonka 20 denars. I won't even list more. Potatoes I won't even talk about. So, in the gardening sector this year was one of the worst economically," Pamukov adds.
As a possible remedy, Pamukov proposes that the state audit the margins charged by importers of seed material and plant protection and nutrition products, and consider intervening to cap margins—similar to a measure introduced in spring to limit fertilizer margins.
Producers warn that unless measures are taken, the widening gap between production costs and producer prices will continue to erode farm incomes and undermine domestic supply during the main growing season.
Photo: press material from the event
