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"Prices are not going to go down" for food products, warn manufacturers

2023-11-28T18:19:56.044Z

Highlights: "Prices are not going to go down" for food products, warn manufacturers. "Inflation will slow down," say the manufacturers, who explain that they are still constrained by costs. The cost of food increased for the French by 21% between January 2021 and October 2023.Exceptionally in 2024, the annual commercial negotiations between supermarket chains and their suppliers will be concluded early – by 31 January at the latest (rather than 1 March) The government introduced this measure, recently adopted by Parliament, in the hope that price reductions for certain ingredients would result in a slowdown in prices as soon as possible.


"Inflation will slow down," say the manufacturers, who explain that they are still constrained by costs (transport, packaging, plastic materials, etc.)


Food prices are "not going to go down" on the shelves next year, the president of the food lobby Ania, Jean-Philippe André, said on Tuesday. The costs of the companies that make them have not generally fallen, he said.

"Fortunately we have entered a phase of disinflation: prices are not going to go down but inflation is going to slow down," he told reporters.

Costs 'continue to rise'

Exceptionally in 2024, the annual commercial negotiations between supermarket chains and their suppliers will be concluded early – by 31 January at the latest (rather than 1 March).

The government introduced this measure, recently adopted by Parliament, in the hope that price reductions for certain ingredients (cereals, oils, poultry, etc.) would result in a slowdown in prices on the shelves as soon as possible. The cost of food increased for the French by 21% between January 2021 and October 2023.

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However, most agri-food companies will start negotiations with higher tariffs because their costs (agricultural raw materials, packaging, transport, wages, energy, etc.) "continue to increase", even if "at a slower pace than last year, fortunately", said Jean-Philippe André.

Negotiations 'may not live up to expectations'

"The result (of the negotiations) may not be up to the level of expectations" of politicians and distributors, said Miloud Benaouda, president of Barilla (pasta, sauces) for Western Europe, head of the industry-trade commission at Ania.

Certainly, he illustrated, there is a "relaxation" on the price of durum wheat used to make pasta, but there are still "strong tensions" on tomatoes and sugar that are used in the composition of sauces, while "energy remains very high".

"We're afraid" of the negotiations that are opening "because we know it's going to be violent," said the head of a company requesting anonymity. "Buyers (in distribution) have a lot of cases to deal with" in a short period of time and "are going to have to be sharper". According to him, one of them started the haggling by asking for "-30%" compared to what had been negotiated a year earlier.

Source: leparis

All business articles on 2023-11-28

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