Ministry for Agriculture and Fisheries rebuts allegations by Opposition Spokesman regarding potatoe exports

The Minister of Agriculture and Fisheries, the Hon. Ninu Zammit refers to the statement issued by the Opposition spokesman for the sector, the Hon. Noel Farrugia, relating to the benefits farmers exporting potatoes to Holland will supposedly be receiving as a result of an agreement signed by the former Socialist Government. This agreement was signed for an additional 3 years following the lapse of the previous 3-year contract.

To set the record straight, Minister Ninu Zammit emphasised the importance of publishing the actual details contained in this agreement in order that the facts can speak for themselves. In his statement, the Hon. Farrugia has boasted the fact that the average price negotiated for the export of 6,000 tonnes increased marginally by only 1.04 Dutch Guilders(DG) per 100kg (from the previous 105DG/100kg to the 106.04/100kg in the 1998 agreement), and the commission payable to the importer decreased by 1%, meaning an approximate saving of another 1DG/100kg. He ignored the facts that:-

i this minimal mark-up does not in any way compensate for increased freight charges three years from the signing of the previous contract

ii the same contract also granted the Dutch importer an increase in his charges to the tune of up to 3.7DG/100kg for storage, unloading, repacking and promotion costs

iii the Dutch importer was allowed to dictate to the Maltese Government a limitation on the amount of seed potatoes of the Alpha type imported into this country. This limitation was set at 800 tonnes per annum for 1999 and 2000 when the average requirement would usually be in the region of 1,000 tonnes.

It is worth explaining to the public that the net amount payable to farmers is computed after taking into account the actual price obtained on the market throughout the period of exportation less the expenses involved both locally and those charged by the Dutch importer referred to earlier. The prices stipulated in the contract refer to a minimum guaranteed price and are expected to be boosted by overpricing as a result of market demand. The approximate 2DG/100kgs rise that Mr Farrugia is flaunting was effectively converted to a 1.7DG/100kg reduction by the hike in the expense costs.

Minister Ninu Zammit added that following an agreement entered into on the 20th October 1998, there will be an additional exportation of 600 tonnes of the Sante variety at a minimum guaranteed price of an average 123DG/100kg. This extra exportation represents a 16% increase in the average minimum guaranteed price and a 10% increase in the overall exported tonnage when compared with the agreement entered into by the previous Socialist Government. This variety has the advantages of greater hardiness and an earlier crop date.

Moreover, in order to further minimise exportation costs, the present Government has initiated the building of the new loading platform at the grading station at Ta Qali as concrete proof of the present Government's real interest and commitment to the sector. This platform, which will be cost somewhere in the region of LM60,000, will be used for this year's first exports and will render greater efficiency and speediness in the loading process from the grading machines onto the trailers and containers. This overall efficiency will be translated into better earnings for potato farmers.

Minister Ninu Zammit concluded by saying that he would be only too willing to publish the contract entered into when the Hon. Farrugia was Minister for Agriculture should the situation so warrant.