Only in the supermarkets is inflation getting worse. Oh, rising prices will continue until at least the end of this year. Despite the law promising to boost purchasing power, the French are still struggling to fill their shopping carts.
On the other side are the farmers in a hopeless situation. The latter can no longer meet the needs of their farms and their animals. This is due to the constantly increasing prices of certain products in the supermarkets.
Supermarkets encounter shortages
According to NielsenlQ, the stock-out rate increased by 1.2% since last year. Climate change has a major impact on the production of certain products. Supermarket shelves are emptying quickly and struggling to fill up with certain everyday items.
According to the FNSEA, France is at risk of a milk shortage
Because of the drought that is ravaging the country, the animals “which are usually in the meadows at this time have nothing to eat”.https://t.co/zzARjLAywv
— Le Figaro (@Le_Figaro) August 6, 2022
The shortage of these foods has been noticeable since the beginning of the year. Mustard, for example, is one of those products that the French will find difficult to find in supermarkets. Specialists even predicted this the lack of mustard could last until 2024.
The out-of-stock also affects sunflower oil, vinaigrettes and cold sauces. Wheat and grains are also hard to find in supermarkets. Stock shortages are accompanied by rising prices. The poorest consumers are the most difficult to follow.
The price increase affects everyday products “cheap”. A brick of semi-skimmed milk is already known an increase of 4.5% since the health crisis. Unfortunately, it will continue to increase.
The increase in prices in supermarkets
The economic director of the national interprofessional center for the dairy industry, Benoît Rouyer, confirmed that the price of dairy products will continue to increase. The latter told BFMTV that there was no sign of a drop in dairy inflation.
Consumers have to deal with it a price explosion In the coming weeks. And that because of the drought caused by the heat wave. The heat waves in June, July and August wreaked havoc. Thus, the drought has reduced the exploitation of herbs. The grasses used for feeding livestock are no longer green and growers are faced with a dilemma.
In such cases, farmers fall back on reserves. However, this lining is intended for the winter.
— BFMTV (@BFMTV) August 9, 2022
You will also be prompted to do sobuy junk food reserved for their animals. Some will be forced to sell part of their pastures. This way they will have less fees. These three options have a big impact on dairy products.
According to Benoît Rouyer, there will still be milk on supermarket shelves. Only the French can feel a ” Defect “. The lack of milk will affect the production of dairy products like butter, cream, cheese and others. The lack of goods always affects the price of products, regardless of the industry.
Is a price negotiation in sight?
Trade negotiations on the price of food take place once a year. farmers suffer an increase in production costs. However, traders still buy milk at a price that is not profitable for producers.
Last spring, the FNPL, or National Federation of Milk Producers, asked Price re-evaluation. They therefore demanded a price of around 1 euro per liter of milk.
In 2021, producers received almost 390 euros for 1,000 liters of milk. An increase of 4.3% compared to 2020. Last May, 1000 liters of milk cost 390 euros. The FNPL claims that this increase is insufficient to cover the increase in production costs.
Thierry Roquefeuil, president of the union, explains that milk producers are better paid in other European countries. Her network observed that a ton of milk costs 480 euros in Germany. In Belgium the price is 500 euros and in the Netherlands milk producers are paid at 540 euros per 1000 liters.
The FNPL asks another increase which roughly corresponds to the level of other European countries. And that before the start of the school year, otherwise the milk producers threaten to switch “A Unionism of Destruction”.