The Corsican Chamber of Agriculture and the Corsican Agricultural and Rural Development Office (Odarc) are denouncing the rise in freight costs and are concerned about the economic consequences for the island's agricultural sector. The two organizations are calling for the principle of territorial continuity to be preserved in the next Finance Act.
Continuous rise in transport costs since 2022
"The maintenance of these arrangements (Public Service Delegation contracts), the foundation of territorial continuity, is now threatened by an imposed increase in transport costs. The very balance of Corsica's agricultural economy is at stake," according to the two bodies, who point out that transport costs to and from Corsica have been rising steadily since 2022, due to soaring fuel prices and stricter European environmental standards.
As a result, "the price of a linear meter of sea freight, currently set at €40 [45 USD], could reach €70 [79 USD] without the PSO. The additional costs linked to carbon quotas already amount to €70/ton [79 USD/ton] and continue to rise."
However, "since 2017, the preferential tariffs made possible by territorial continuity have supported the dynamism of local production: -/+12% in exports of clementines and pomelos, -/+24% for PDO wines, +100% for PGIs, -/+29% for cheeses."
Citrus exports could rise by +40%
This dynamic is now under "serious threat," with wine and citrus fruit exports set to rise by 53% and 40% respectively. Imports of agricultural inputs (fertilizers, animal feed, packaging, bottles) would also become more expensive, "putting an even greater strain on farmers' margins."
"Corsica would fall into an entirely competitive service model"
"If the public service contracts were to disappear or be significantly weakened, Corsica would fall into an entirely competitive service model, with no guarantee of regularity or moderate fares. Such a development would condemn farms to an irremediable loss of competitiveness, both nationally and locally. Additionally, the local market, which is largely sustained by tourism, would also be weakened: higher ticket prices would deter visitors and reduce their capacity to spend."
Faced with this situation, the Corsican Chamber of Agriculture and Odarc are calling for the territorial continuity budget to be maintained and increased in the next Finance Act, for transport subsidies to be clearly prioritized in favor of local agricultural production, and for a refusal to align transport subsidies for imported products in direct competition with Corsican produce.
Source: odarc.corsica