SPAIN'S fruit canning industry is under threat due to shrinking demand, strong competition from developing countries and the lack of direct government subsidies to support the sector, according to a report by the USDA. Growers of canning peaches are said to have already begun the process of switching to other agricultural products due to the weaker prices they have received in the past couple of years. During the current 2010/11 marketing year, peaches for processing were paid at EUR0.21 per kg, which is a small improvement compared with the EUR0.19/kg paid in the previous year, but a significant decrease compared with the 2008/09 season, when prices averaged EUR0.31/kg.
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