There doesn’t seem to be any light on the horizon for accuracy for the consumer public, as bread and cereal prices have seen an uptick again.
From 3% in November, inflation climbed to 3.5% in December according to ELSTAT. The agency noted that food prices continue to “gallop” and, as a result, constitute a major “hurt” for consumers.
The index for food and non-alcoholic beverages rose 8.9% year-on-year, by far the largest increase of the other product and service categories.
Double-digit increases were recorded in the prices of olive oil (58.5%), fruits (15%), vegetables (14%) and in the group of mineral waters – soft drinks – fruit juices (12.6%).
At the same time, the “wave” of price hikes also affected bread products again, with the cost of bread and cereals increasing by 2.6%, despite the fact that wheat has been sold cheaper lately, according to a report by ALPHA.
Cheap in the field, expensive on our plate: Effects of profiteering by middlemen
Producers complain of exploitation and profiteering by the middlemen, who they say are the only ones responsible for the exorbitant jump in prices and the reason why a product ends up being sold to consumers at a very high price, while they have bought it very cheaply.
Thus, when the product leaves the field, according to a report by Alpha, it is not rare that the farmer is unaware of the price at which he will be paid, as no invoice is issued, so the middleman gives a price, since the product has already goes to the warehouse.
They buy “new year” and sell expensive
Essentially the product is bought by the middlemen “year old” and then they “build” their price, which by the time the product hits the shelf has doubled or even tripled from its original value price.
However, the farmer who can be paid, for example, 4 euros for the product and the middleman sells it at 8, will not sign an invoice for 4 euros but for 8 euros, so that the middleman, who earns at ” backs’ of the producer.
And so we get to the point where consumers look at the prices in supermarkets and add and subtract, arrive at the checkout with half-full trolleys and can’t understand why they’re paying so much money. The reason is that the farmers have fallen prey to profiteers, who are hoarding by exploiting the labor of the producers.
“We need to know the prices”
“For someone to come from the field, see what we spend and how the products reach the consumer,” bursts out a producer on Alpha’s camera.
“We who produce make the minimum and the others hoard”, they say and complain that “we give products at prices we do not know”.
Producers, however, welcome the government’s decision to allow a credit invoice for only 3% of production and the continuation of intensive controls, as they believe that this will stop crooked practices in the supply chain. “We need to know and get paid immediately,” they emphasize.
At the same time, the government with the new anti-punctuation measures it is promoting expects to see a reduction in prices on the shelf in March, while in case of non-compliance with them, fines will be imposed. But are these paid?
So far 13 million euros in fines have been imposed on companies by the audit services and around 50% of the amount, around 6.5 million euros, has been collected.
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