Processed tomatoes prices

I feel I should comment on what Randolph Spiteri wrote on February 22.

First of all I would like to ask Mr Spiteri to inform the public what reduction in the prices of processed tomatoes did the public get during the years he mentioned - 2002, 2003 and 2004.

The money for the SMPPMA comes from the pockets of the Maltese taxpayer. In the case of processed tomatoes it was specifically given for the product to be sold at a lower price. Now since Mr Spiteri has the means and the time at his disposal he should give us citizens a break down of how much subsidy was given from our pockets during the years he quoted and how much in reduced prices did the consumer save These should match or just about. The dates when these reductions actually started is very important. Do not count the CMO subsidy. This comes from the EU and should ease the burden of the subsidy we pay.

As far as I recall, almost Lm1 million were paid in subsidies in 2002 and 2003. Subsidies were not paid to farmers because farmers received the same amount as usual. It is the processor that was subsidised. He paid less, just 2c per kilo. A clear answer is expected, we are not talking about a bag of peanuts.

Now do not tell the farmers they are better off. They were getting the same price or better than they are getting now even years ago. They used to get 10c per kilo when 10c were worth 10c. Now the price has gone lower while expenses have increased.

Subsidies will not increase production or remove constraints. We have our natural limitations. Better plants and better systems might raise the production per hectare but then the cost of the labour-intensive picking process will have to increase proportionately. Mechanised picking is not feasible in many areas. This means a costlier product.

Mr Spiteri is invited to ask the farmers whether they will go for the crop when in a few years time the subsidies will go down to 30 per cent of what they are now. Eventually these subsidies will fizzle out. Wither the tomato production for processing to the tune of about 13,000 tons? Tomatoes for processing in huge quantities will no longer be a sustainable crop when the subsidies go. The processor will be able to find very much cheaper products elsewhere and the local farmer cannot compete with the world prices. Fresh tomatoes for export in summer might succeed after an intensive marketing campaign. The quality and taste of our tomatoes are unbeatable. This will have to be the work of the producers' organisations.