Lack of labour conditions delaying sector growth

The delays in  foreign labour employment is slowing down the growth of the soft fruit producers in Portugal.

Well-Pict Portugal grows in around 45 hectares of strawberries and wishes to reach the 100 há in the medium term, but the area increase in 2007 will not be more than 5 ha. The producer organization (PO) Lusomorango, that brings together 5 of the biggest soft fruit producers in Portugal, with 110 ha of strawberries and raspberries, wants to increase the growing area to 400 ha, but in the forthcoming year will not increase more than 45 ha( with new members joining)
“The situation is very instable in this area, with the Sector Plans of “Rede Natura” some restrictions will be put into place, and we still do not have a solution for the lack of labour”. Our growth depends on the resolution of these two problems, because in reality if we produced double the volume that we are producing now, we could sell it at a profit, however only if we overcome these restrictions”, confides Sofia Rosendo, Managing Director for Well-Pict Portugal. The company, sited in Brejão, in the South West Alentejo, needs 350 workers, and in the beginning of April( when this interview was made) only was able to recruit 140 people.

“We have not increased the areas were we grow as much as we would predicted, because we are having difficulties in finding labour. The way the season goes is uncertain and it becomes hard to plan ahead when we will get foreign labour”, explains Gonçalo Andrade Commercial Director of  Lusomorango, that needs around 500 workers split trough the different PO members.

Confronted with the lack of national labour these companies are forced to recruit foreign labour, a bureaucratic and time consuming process, which is conditioning the growth rhythm of this sector. The problem can be overcome in the short term, since its being prepared a change to the legislation of foreign labour recruiting ( see below).

Natura 2000 creates restrictions

Side by side with labour recruiting issues, the strawberry producers of the Alentejo Coast- where most of the national strawberry production and other berries is- are concerned with the restrictions that will be imposed by the “Rede Natura” to the local farming activities. The “Mira Sector Plan”, that integrates the “Rede Natura 2000” and that will be available for public consultation in a month time, will impose limits to production, amongst which are “restrictions to install new greenhouses and stopping the use of soil disinfection, that are concerning us, since it could condition our growth”, explains Sofia Rosendo.

Gonçalo Andrade, mentions the problems related with phitosanitary product approval, area which there is a big disparity if you compare it with the approved products in Spain, what makes the competition harder”.

Another limitation that is concerning the strawberry growers, is prohibition on the use of methyl bromide, that is already in place for production, and will be soon for the nurseries. “From the moment the nurseries are forbidden to use methyl bromide, the situation will be very concerning. The majority of the strawberry varieties have some problems, including Anthracnose, which contaminates the soil. If the nurseries can’t disinfect their soil, those diseases can be transmitted to the growers, and since there is no effective alternative to chemical disinfection, especially in intensive production where the soil is available only for very short spaces of time”, mentions the Manager for AMS. “We already expect productions to be lower due to these facts”, reinforced Gonçalo Andrade.

New rules for foreign labour recruitment
 “Frutas, Legumes e Flores” found through the producers that a new labour ruling will take place, in the short term, to admit outside the EU citizens, easier on labour recruitment. The new rules will be less bureaucratic, that today might take 6 months, between signing the contract to achieving the work permit. The new legislation predicts that once the promise contract is signed between the worker and the contracting company, the Foreign Office( SEF) gives the permission for this person to enter the country, that has than 2 to 3 weeks to get the final VISA in Portugal. The companies that contract the foreign labour will be made responsible for their stay in Portugal, and when they do not need the worker, they must inform SEF. To the worker there are two options: return to their country ( one of the options could be that the recruiting company to pay for the returning ticket) or to get a new contract with the deadline of one month. The work permits will be given for shorter periods- minimum 3 months- and not a minimum of one year, how it is now. To better adapt to the different economical activities, there will exist different types of work permits. At the end of this edition it was not possible to confirm this information with SEF.

The national market was not a winning bet
“The season is going very well in terms of quality, even though there was a slight delay in the start of the production, due to cold temperatures. The prices are low , but we are able to diversify in terms of export customers” says Sofia Rosendo. The General Manager for Well-Pict Portugal  is sorry that the prices this season of the Portuguese distribution are below production costs: “ the national market has not been a bet won. We can achieve treble the price selling abroad, what justifies our option”..

Well-Pict Group is betting on the varietal program of the spanish Planasa. This season 90% of the área of  Monte da Azenha is being planted with the variety  Candonga-Sabrosa, Sofia Rosendo: “at the moment is  the variety that best answers our market needs, is more resistant to pests and diseases, i this not has demanding in fertilizer as other varieties of University of California, is easy to pick and gives us a high percentage of class I strawberries (94 %), and also an excellent flavour and shape.

Well-Pict Portugal continues to trial University of Califórnia varieties. Trials with Albion in 2005, planted in January, revealed some problems with excessive vegetation growth, what implicates extra labour for “weeding”. This year, Well-Pict Portugal, started trials with this variety in mid April, in the expectation o getting better prices, that would compensate the extra labour costs.

In 2007, Well-Pict Portugal should increase the table-top production in 5 há, installing greenhouses equipped with environmental control (water, fertilization, temperature, humidity). Next year will also start their own production of predators, for their own use and for third parties.

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