Fires under control except Mount Parnon

ATHENS (AFP) — A fire raged in Mount Parnon near the Greek town of Sparta for a ninth day Sunday but other blazes in the devastated Mediterranean country were under control, the fire services said.

Four water-bombing planes and a helicopter were deployed early Sunday to battle the blames around Mount Parnon but no villages were threatened, a spokesman for the fire service said.

"This day will be difficult again because we expect strong winds in the country's west, including the Peloponnese," he said but underlined that temperatures were expected to be lower in the Athens region.

The Peloponnese inferno started on August 24 in the wake of a heatwave, the third to hit Greece since the beginning of the summer. The fires have claimed at least 63 lives and destroyed 200,000 hectares (494,000 acres) of forests and farmland.

Greece was plunged into a national disaster as villages were consumed by flames that moved faster than a car and people were burned to death as they attempted to escape.

Two other planes and three helicopters were meanwhile dispatched Sunday to fight fires in the ancient town of Megalopolis and Karytaina in the central region of Arcadia and nearby Messenia, he said.

The official said three other fires which broke out nine days ago in the island of Eubee were still burning but under "partial control."

Two other blazes in Ionnina and Kilkis had been contained but a new one that broke out on Saturday in the northern prefecture of Imathia would be put under control later in the day, he added.

Strong winds cause more fires in Greece

Saturday, 1 September 2007 17:40

Strong winds are reported to have reinvigorated forest fires in parts of Greece.

Authorities say winds and high temperatures have led to new fires breaking out.

More than a week after the start of blazes that have ravaged land across the country, killing at least 63 people and forcing thousands from their homes, two fire fronts are still burning on the southern Peloponnese Peninsula.

A helicopter has rescued five firefighters and 17 civilians who had been fighting a blaze in the Parnonas mountain region.

It is expected that it will take several days to bring the fires under control.

Temperatures rising to 40C and strong winds are hindering the battle against the fires.

Prime Minister Costas Karamanlis toured the devastated areas today with European Commission President Jose Manuel Barroso.

Estimates of damage to the economy range from €1.2bn to €4bn.

The Commission has said it could provide up to €200m from the EU 'solidarity fund'.

The Greek opposition socialist PASOK party has slammed Mr Karamanlis's handling of the disaster.

Many villages had to face the fires without help for several days.

But the Prime Minister, who said arsonists were to blame, has called for national unity. His administration has doled out at least €107m in compensation so far.

The last opinion polls showed his ruling New Democracy party keeping around a two percentage point lead over PASOK but support for both parties has waned since the fires began.

A general election will be held on 16 September.

Information gathered from:

http://www.rte.ie/news/2007/0901/greece.html

Greek Fires Destroy Olive Trees, Cutting Olive Oil Production

By Marianne Stigset

Aug. 31 (Bloomberg) -- Greece's worst forest fires in history may have destroyed as many as 5 million olive trees, cutting production in the world's third-largest olive oil supplier and threatening to reduce output for years, an industry group said.

As much as 5 percent of this year's harvest may be lost, according to the group, Sevitel. A week of fires has killed at least 63 people and ravaged about 250,000 acres (101,200 hectares) of forest and farmland, Greenpeace Greece estimated. The Peloponnese peninsula, which generates 30 percent to 40 percent of the country's 9 billion-euro ($12.3 billion) olive oil market, is the worst affected.

The damage may reduce output to 285,000 metric tons and will devastate the economies of Peloponnese villages, which on average get as much as 60 percent of their income from olive farming, according to Sevitel, an association of producers and processors. Olive trees, which were cultivated by the Minoans of ancient Crete in 3500 B.C., can take 15 years to reach optimal production, the organization said.

``It's the first time in the history of this country that we have such an environmental disaster,'' Nikos Charalambides, director of Greenpeace Greece, said in a phone interview from Athens yesterday. ``Hundreds of people have lost their farmland, their animals. The olive trees will need years to grow.''

It may take a decade for people living off olive farming in the stricken areas to get their earnings back to prior levels, Gregory Antoniadis, the president of Sevitel and spokesman for Elais-Unilever SA, a Greek olive oil exporter, said from Athens.

Homes, Jobs

At least 2,500 people have been left homeless by the fires, which may lead to labor shortages and loss of expertise in the industry, Charalambides said.

More than 250 blazes have spread across central and southern Greece since Aug. 24, requiring the biggest firefighting operation in Europe since World War II. Early estimates set the cost of damage to farmland at 1.5 billion euros, Greek newspaper Express reported this week, citing unidentified government officials. Greece has experienced more wildfires this month than any European country in the past decade, according to the European Space Agency.

Greece, the largest olive oil producer after Spain and Italy, accounts for 13 percent of the global market, according to Rabobank Groep, the world's biggest farm lender. The country produces on average 300,000 tons a year, Antoniadis said. A 5 percent output cut would represent a loss of about 45 million euros, at current prices.

Spain Key

The drop in Greek production is unlikely to affect prices because of rising output in Spain and Italy this year, Rabobank said.

``What's really important is what happens in Spain, the world's top producer,'' Vito Martielli, a food and agribusiness analyst with Rabobank, said by phone from Utrecht, the Netherlands, on Aug. 29. ``Olives have a biannual production cycle and this year, production in Italy and Spain will be very high.''

Production increases in Spain and Italy would more than offset any decline in Greece, helping lift global output potentially by as much as 7.1 percent to about 3 million tons in the next season, which runs from November to March, Martielli said. That would be the highest since 2003-2004, he said.

Prices have dropped about 25 percent to 3 euros a kilogram since 2005-2006, when frost hit the main producing countries, according to Martielli.

Spain produced an estimated 1.1 million tons this season, 39 percent of the market, followed by Italy, which produced 630,000 tons, according to Rabobank. Greece produced 370,000 tons, more than half of which was exported to Italy, the world's biggest consumer.

To contact the reporter on this story: Marianne Stigset in London at mstigset@bloomberg.net