Inflation only gets worse in supermarkets. Poor me, sky high prices will continue until at least the end of this year. Despite the law that promises to increase purchasing power, the French still struggle to fill their shopping carts.
On the other hand, farmers are in a desperate situation. In fact, the latter can no longer meet the needs of their farms and their animals. This is because the prices of certain products in supermarkets are constantly increasing.
Supermarkets face shortages
According to NielsenlQ figures, the stockout rate increased 1.2% since last year. Climate change greatly affects the production of certain products. Supermarket shelves empty quickly and struggle to fill when it comes to certain everyday products.
A risk of milk shortage threatens France, according to the FNSEA
Due to the drought that is hitting the country, the animals “that are in the meadows usually at this time have nothing else to eat.”https://t.co/zzARjLAywv
– Le Figaro (@Le_Figaro) August 6, 2022
The shortage affecting these foods has been felt since the beginning of the year. Mustard, for example, is one of the products that the French will have a hard time finding in supermarkets. Specialists have even predicted that mustard shortage could last until 2024.
The shortage also refers to sunflower oil, vinaigrettes and cold sauces. Wheat and cereals are also hard to find in supermarkets. Shortages are accompanied by sky-high prices. The poorest consumers They are the hardest to follow.
The price increase refers to everyday products. ” cheap “. A brick of semi-skimmed milk has already met him an increase of 4.5% since the health crisis. Unfortunately, it will increase even more.
Rising prices in supermarkets
The economic director of the interprofessional national center for the dairy economy, Benoît Rouyer, stated that the price of dairy products will continue to increase. The latter told BFMTV that falling inflation is not in sight for dairy products.
Consumers will have to deal with an explosion of prices In the next weeks. And this, because of the drought caused by the heat wave. Heat waves in June, July and August wreaked havoc. Thus, the drought has reduced the exploitation of herbs. The pastures to feed the cattle are no longer green and the producers face a dilemma.
In such cases, farmers find themselves plunging into reserves. However, this fodder is intended for winter.
– BFMTV (@BFMTV) August 9, 2022
They will also be required tobuy junk food Reserved for your animals. Some will be forced to sell part of their pasture. In this way, they will have fewer loads. These three options will greatly affect dairy products.
According to Benoît Rouyer, there will still be milk on the supermarket shelves. only the french can feel a ” lack “. The lack of milk will affect the production of dairy products such as butter, cream, cheeses and others. The absence of merchandise will always affect the price of the products regardless of the sector.
Is there a price negotiation in sight?
Trade negotiations on the price of food products take place once a year. farmers suffer an increase in the cost of production. However, distributors still buy milk at a price that is not profitable for producers.
Last spring, the FNPL or National Federation of Milk Producers asked price reassessment. Therefore, they asked that the price of a liter of milk be around 1 euro.
In 2021, producers had received about 390 euros for 1,000 liters of milk. An increase of 4.3% compared to the year 2020. Last May, 1,000 liters of milk cost 390 euros. The FNPL alleges that this increase is not enough to cover the increase in production costs.
Thierry Roquefeuil, president of the union, explains that milk producers from other European countries are better paid. His network noted that in Germany, a ton of milk costs 480 euros. In Belgium the price is 500 euros and in the Netherlands milk producers 1000 liters are paid at 540 euros.
The FNPL asks an additional increase which is close to the levels of other European countries. And this, before the start of the school year, otherwise the dairy farmers threaten to switch to “a trade unionism of destruction”.
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