How much will the prices of food products (and not only) flare up?

27 May 20222 years ago babelfish

According to the analysis by Entrega, the largest food group purchasing organization in the world, here are which food and other products we will see skyrocketing prices in the next quarter

Price increases across Europe are expected in the next quarter for many food products, including milk, poultry, salmon, but also for materials such as plastic and aluminum. This is confirmed by an analysis by the Entegra Observatory, the largest food group purchasing organization in the world with over 20 billion euros of purchasing power. Entrega is also part of the French Sodexo group which operates in on-site catering services for companies, schools and healthcare.

THE CAUSES

The world of food and beyond in the coming months will have to deal with the consequences of a difficult period, which began with the pandemic and continued with the ongoing war in Ukraine caused by Russia.

Difficulty in finding raw materials and related price increases, as well as increases in electricity and gas prices, which weigh on bills and transport .

GENERALIZED PRINCIPLES

Compared to the April and May price lists, the analysis – as reported by Ansa – reports that, considering the increase in the European average price and on the basis of the current price conditions, increases of between 3% and 15% are expected. , according to the different product categories.

WHICH FOODS WILL COST THE MOST

In the next quarter, according to Entrega, in Europe an increase of at least 5% for chicken meat and more than 25% for salmon is expected, despite an 87% increase already recorded year on year.

Milk , according to forecasts, will exceed + 5%.

Among vegetables, the increase in the price of potatoes stands out, where a distinction is made between industrial and table ones. Given the decrease in product availability, in the first case an increase of over 15% is expected in Europe (the reference market is Holland), while for table potatoes the growth will be greater than 5% (the reference market is France).

On the other hand, the price of oranges does not seem to worry, since they are not produced in Italy in this period and are imported from Egypt and South Africa. Over the next six months, Egyptian oranges are expected to increase by more than 3%, while for South African oranges, the price is expected to fall by up to 20%.

FOCUS MEAT

For meat, we read on HoReCa News , whose price is also influenced by factors such as feed and transport, the current geopolitical situation has upset the forecasts made for the year 2022.

For beef, if the price growth expected for the first quarter of 2022 in Europe was between 0 and 3%, now the increases recorded for the same period by the major European producers – Ireland, Germany, France – now exceed 10 %.

"Very volatile" is defined as the price of pork, although with lower percentages than beef. The trend at the beginning of the year was downward (-23.32% in February), but prices began to rise at the end of the month, exceeding the values of December last year (+1.33).

FOCUS MILK AND CHEESE

If a 5% increase is expected for milk, we must also remember, as Agi observes, the low costs with which this material is paid, "so on the one hand there is the first strand of the supply chain – that of farmers and breeders – which is affected by increasingly lower prices recognized for milk production and, on the other hand, the high costs and strong inflationary tensions that will increase the cost of the processed product, ie cheeses, for the final consumer ”.

For the latter, increases of 10-15% are expected.

INCREASES ALSO FOR PLASTIC AND ALUMINUM

But according to the analysis, the increases in Europe over the next three months will also affect non-food materials, such as plastic and aluminum.

Plastic, which has already increased by 20.09% on an annual basis, will still be penalized due to its extremely energy-intensive production, which suggests an increase of more than 5%.

As regards aluminum, on the other hand, it should reach an increase of 15%, which follows the increase of 15% already on an annual basis.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/quanto-si-infiammeranno-i-prezzi-dei-prodotti-alimentari-e-non-solo/ on Thu, 26 May 2022 13:41:01 +0000.