Dairy products soon out of price? The worrying numbers

published on Wednesday, January 11, 2023 at 7:30 p.m.

Manufacturers of fresh dairy products are calling for a price increase in supermarkets to cope with the sharp rise in their production costs, energy in the first place, reports BFM Business.
New daily products of the French might in turn suffer a sharp increase in prices: dairy products. Faced with rising production costs, the professional organization Syndifrais, which brings together the main companies in the sector (Lactalis, Yoplait, Laïta, etc.), is calling for an “immediate revaluation” of selling prices by 15 to 20%, reports BFM Business, Wednesday 11 January.

“Energy prices, by reverberating throughout the value chain, threaten the sustainability of the French sector”, says Syndifrais in a press release published on Tuesday and taken up by the economic information channel. Energy accounts for “up to 10%” of manufacturing costs
As with bakers or heavy industries, energy is essential for dairy manufacturers. According to Syndifrais, it represents “up to 10%” manufacturing costs for yoghurts, white cheeses and other small Swiss cheeses.
Soaring prices for packaging, logistics or even ingredients such as milk, starch, sugar, eggs or fruit are also weighing on the results of these companies, according to the professional organization. These costs “will continue to increase in the months to come”is alarmed the president of Syndifrais Patrick Falconnier.
The price increases negotiated at the beginning of last year, within the framework of commercial negotiations with large retailers, have not been taken into account “only from the months of May and June”adds Syndifrais, referring to “weakened treasury”. Under these conditions, Syndifrais warns: companies “will not be able to support alone, once more, such losses caused by a shift.”

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