2023-06-14 17:38:00
Federal Economics Minister Pierre-Yves Dermagne on Wednesday called on food chain players to reach an agreement that will allow food prices to fall in mid-July.
Cereals, milk, vegetable oils… The prices of many raw materials are falling worldwide. How to explain that manufacturers do not spontaneously lower their prices? This is explained first of all by the fact that they work with long-term supply contracts. “The other reasons being the payroll which increased sharply in January, packaging, transport… All that continued to increase. It is stabilizing for the moment, but we also see that there is uncertainty and volatility of a lot of raw materials”, explains Arthus De Bousies, head of an industrial company.
For manufacturers, it is difficult for the time being to reduce their prices, because operating costs remain very high. Pierre-Yves Dermagne does not rule out, as a last resort, publishing the list of companies that would not have wanted to lower retail prices when costs have fallen. He clearly explained this to the Belgian Food Industry Federation (Fevia). The latter reacts to such statements. “The list will remain empty. It is in everyone’s interest, both food companies, but also supermarkets who set prices to consumers, to keep prices under control themselves”, says Carole Dembour, economist at Fevia.
The Federation is once morest intervention in price fixing. “Lower raw material costs are starting to feed through to consumer prices. The market is working well”says Carole Dembour.
Studies on the margins of the agri-food sector and price levels in Belgium, compared to neighboring countries, are in progress.
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