HomeEconomyExplosion of energy bills: fruit and vegetable producers ask for state aid

Explosion of energy bills: fruit and vegetable producers ask for state aid

The interprofessional of fresh fruit and vegetables Interfel claims that the sector benefits from an energy shield. Some producers could multiply their bill tenfold by renewing their contract for 2023.

The tone was alarmist during Interfel’s virtual press conference on Thursday morning. The interprofession of fresh fruit and vegetables has wanted to bring to light the critical situation of the activity sector which, like the vast majority of other sectors of the economy, is facing an explosion in the energy bill. “Between a quarter and a third of the companies -depending on the sectors in question- could be strongly impacted by these increases, and even disappear in 2023 if nothing is done,” warns the organization in a statement, while the 75,000 companies in the sector employ no less than 450,000 people.

In fact, not all sectors are in the same boat. Thus, some apple growers are seeing electricity prices triple and even multiply “by 12 for companies that have had to renegotiate their contracts.” The rise is just as dizzying for endive growers whose companies are renewing their contracts. Endive farming is particularly energy intensive due to temperature controls, so one grower said his bill would jump from €80,000 in 2021 to a projected €800,000 for fiscal 2023.

Cuts that can be fatal

Greenhouse crops, widely used in the production of tomatoes, cucumbers and strawberries, are also victims of this spike in energy prices, using gas in three quarters of the cases.

Although Interfel understands the strategy of “energy sobriety” that has been advocated for several weeks in the face of winter, it recalls that certain crops cannot afford to reduce their energy consumption, such as bananas, which are the second most consumed fruit in France.

Support up to 70% beyond invoice duplication

To remedy this situation and save the sector without subjecting consumers to an increase in the prices charged, Interfel has made several proposals to the government. Although almost one in four companies will have to renegotiate their contracts before the end of the year, the forceful measure presented by Interfel is the introduction of “coverage, at least up to 70%, of the additional cost of energy costs when the company is before a minimum duplication of the energy price offered by your supplier.

The interprofessional also wants to exclude the fresh fruit and vegetable sector from the energy rationing system put in place by the government to avoid any impact on the supply and marketing of products. It also calls for a downward revision of the threshold of 3% of the company’s turnover for energy as an eligibility criterion for the payment of aid, which “does not reflect all situations”.

Author: Timothy Talby
Source: BFM TV

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