Food manufacturers in France have asked stores to increase prices by 15-25% from 2023.
PARIS, 1 December – RIA Novosti. Grocery manufacturers in France have asked retailers to increase the prices of their products by 15% to 25% from the beginning of 2023, due to inflation and rising production costs, the newspaper Monde reported on Thursday.
By December 1, food manufacturers had to bid on the trading floors on the prices of their products. Trade negotiations with distributors to agree on final prices for products will continue until March 1.
Authorized by the French Federation of Trade and Distributors, Jacques Cressel told the publication, “The requirements for revaluation of products we receive from manufacturers are extremely high: between 15% and 25% for some items.”
Manufacturers have asked for price increases of up to 7 percent for pasta and ham, 10 percent for chicken, 26 percent for sugar and 30 percent for soda.
According to the newspaper, the producers demanded a 7 percent price increase a year ago, but this figure was reduced to 3.5 percent during the negotiations. This year, the level of price increase is due to several factors at once: the recovery from the coronavirus pandemic, the conflict in Ukraine, the avian flu epidemic in France that led to an increase in prices for raw materials, energy, packaging, and the transport of products.
According to the analytical agency IRi, quoted by Monde, food inflation in France at the end of November was 12%. However, manufacturers say that this is not enough to cover their increased costs, especially electricity bills.
In October, the French National Institute for Statistics and Economic Research (Insee) published a report that estimated inflation to rise to 6.6% by December 2022. According to the research, the same situation in the increase in energy prices, which will break the 20% limit and reach 20.8% in December, will have a significant impact on food prices, which are expected to increase by 11.7% at the end of the year. year. .
Earlier, French media reported that nearly 9,000 businesses went bankrupt in France in the third quarter, a record for the last 25 years. Small businesses suffered the most: small shops, restaurants, hairdressers and beauty parlors.
The West has increased sanctions pressure on Russia due to the conflict in Ukraine, which has led to higher electricity, fuel and food prices in Europe and the United States. Russian President Vladimir Putin has previously stated that the policy of containing and weakening Russia is a long-term strategy of the West and that the sanctions deal a serious blow to the entire global economy.
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