Inflation is only getting worse in the supermarkets. Alas, soaring prices will continue until at least the end of this year. Despite the law that promises to enhance purchasing power, the French are still struggling to fill their shopping carts.
On the other hand, farmers are in a hopeless situation. Indeed, the latter can no longer meet the needs of their farms and their animals. This is due to the prices of certain products in the supermarkets which are constantly increasing.
Supermarkets encounter stockouts
According to figures from NielsenlQ, the stock-out rate increased by 1.2% since last year. Climate change greatly affects the production of certain products. Supermarket shelves empty quickly and struggle to fill up when it comes to certain everyday products.
A risk of milk shortage threatens France, according to the FNSEA
Because of the drought that is hitting the country, the animals “which are in the meadows usually at this time have nothing left 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 find difficult to find in supermarkets. Specialists have even predicted that the shortage of mustard could last until 2024.
The out of stock also concerns sunflower oil, vinaigrettes and cold sauces. Wheat and cereals are also hard to find in supermarkets. Stock-outs are accompanied by soaring prices. The poorest consumers are the most difficult to follow.
The price increase concerns everyday products ” cheap “. A brick of semi-skimmed milk has already known an increase of 4.5% since the health crisis. Unfortunately, it will increase further.
The increase in prices in supermarkets
The economic director of the national interprofessional center for the dairy economy, Benoît Rouyer, affirmed that the price of dairy products will continue to increase. The latter told BFMTV that the fall in inflation is not in sight for dairy products.
Consumers will have to deal with a price explosion in the coming weeks. And this, 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 to feed livestock are no longer green and producers face a dilemma.
In such cases, farmers find themselves dipping into reserves. This fodder is however intended for the winter.
— BFMTV (@BFMTV) August 9, 2022
They will also be required tobuy junk food reserved for their animals. Some will be forced to sell part of their pastures. In this way, they will have fewer charges. 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 goods will always have an impact on the price of products regardless of the sector.
Is 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 a price reassessment. They therefore asked for the price of a liter of milk to be around 1 euro.
In 2021, producers had received nearly 390 euros for 1,000 liters of milk. An increase of 4.3% compared to the year 2020. Last May, the 1000 liters of milk cost 390 euros. The FNPL claims that this increase is not enough to cover the increase in production costs.
Thierry Roquefeuil, president of the union, explains that milk producers in other European countries are better paid. Their network observed that in Germany, a ton of milk costs 480 euros. In Belgium the price is 500 euros and in the Netherlands milk producers are paid at 540 euros per 1000 liters.
The FNPL asks a further increase which is close to the levels of other European countries. And this, before the start of the school year, otherwise the milk producers are threatening that they will switch to “a trade unionism of destruction”.