Netherlands have to accept food price increases

Published 2022년 3월 21일

Tridge summary

The international markets have seen a significant increase in prices for oilseeds and grains due to the ongoing war in Ukraine, leading to increased costs for the food industry, particularly bakeries. This comes as a further financial strain after last year's price hikes due to the coronavirus pandemic. Bakeries are struggling with fixed contracts and rising energy costs, forcing them to consider passing on the price increases to supermarkets and consumers. Elemans suggests that supermarkets could spread extreme price increases across their product range to help maintain the food chain in the Netherlands.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Elemans writes that prices for oilseeds and grains have risen sharply in international markets as a result of the war in Ukraine. These price increases are bad news for bakeries. “Last year they also had to face significant price increases due to corona. Passing on price increases to supermarkets and consumers is now the only workable solution," according to the sector specialist. Contract In addition to raw material prices, energy costs have also risen sharply in the food industry. This means that bakeries have contracts with supermarkets that they cannot escape. Even if supermarkets start to pay more, that will not be enough to cover the costs. “The price of bakery products therefore has to rise sharply to ensure that margins at bakeries do not evaporate and profitability can recover. Under extreme circumstances, as is currently the case, 'contract is contract' no longer applies. The producer earns a fair remuneration, but must be able to explain cost increases well. As a kind ...
Source: Levens

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