Agriculture department wants to empower farmers, increase transparency

The Agriculture Department this week said that it will introduce tools similar to e-Kofini, which aims to help consumers compare fruit and vegetable prices, to help farmers better leverage their position in the supply chain while enhancing transparency.

This announcement follows a statement by the Cyprus Consumers Association concerning the trade of perishable goods and their retail prices.

In its report, the association reported a significant disparity between retail and producer prices for fresh fruit and vegetables, with retailers benefiting the most. This issue, the association continued, affects consumers and undercompensated producers.

A survey of 30 fruits and vegetables revealed that 27 items had gross profit margins exceeding 107 per cent, with bananas at 171 per cent and cherry tomatoes at 120 per cent. Moreover, the association said that it considers a 50-60 per cent margin to be more reasonable.

The survey, based on data from April to July 2024, highlighted the need for intervention to ensure fair pricing and compensation. Historically, profit margins were regulated, ensuring fairness for all parties.

In response, the Agriculture Department said that “in order to narrow the price gap between agricultural producers and consumers, we are promoting a series of initiatives through the creation of new tools”.

“These tools aim to empower farmers within the supply chain and, at the same time, enhance transparency,” the department added.

The announcement also stated that the Agriculture Department, alongside the Ministry of Agriculture, Rural Development and Environment, aims to “support producers to ensure they receive a fair income and provide consumers with high-quality products at affordable prices”.

The first measure in this effort is the operation of the aforementioned e-Kofini, where consumers can view average prices, updated every Monday and Thursday on the Agriculture Department’s website and through a group operating on the online messaging platform Viber.

Currently, the department said, e-Kofini operates in a simple form to ensure ease of use, particularly for farmers who need to know the average selling prices of their products, especially those without access to an organised producer group.

“Through this tool,” the announcement stated, “the difference between the selling price of products and the retail price paid by consumers is made clear”.

“This is the first of a series of measures to follow,” the department’s announcement added.

The Agriculture Department also said that the European Commission, in its efforts to strengthen farmers’ positions in the supply chain, suggests creating an observatory for production costs, profit margins, and commercial practices to enhance transparency.

Until this observatory is established, the Agriculture Department is developing a series of medium-term tools to inform stakeholders accordingly.

Additionally, the Agriculture Department said that it is moving ahead with various support measures for producer groups, which can help resolve other structural issues related to agricultural production.

Finally, the department issued a reminder that vegetables are among the essential products for which the government has implemented a zero per cent VAT rate.