2023-07-30 08:47:36
Between international instability, the undermining of the “breadbasket of Europe” and the opportunism that this created for some, the outbreak of war in Ukraine strongly affected world agricultural markets, in particular those of cereals and oilseeds.
This is the conclusion of the recent annual report of theObservatory of the formation of prices and margins of food products (OFPM) which explains that the increase in food prices (+7.3%) was stronger than general price inflation (+5.2%) in 2022.
Indeed, the price of a food item includes the value of the agricultural raw material, that added by processing companies and finally that added by the distribution chain. However, on average, the price of common wheat rose by 41% last year, once morest 34% for durum wheat.
However, the impact on consumers remains under control since the price of a baguette, for example, made from soft wheat, has only increased by 4.4%.
As the OFPM points out, “in the event of a shock to the prices of agricultural products, consumer food prices remain relatively stable. […] However, the gross margin of distribution can also decline rapidly to maintain the price to the consumer of emblematic products”.
Nevertheless, some foods have still suffered sharp price increases such as pasta (+26%), beef (+13%), butter (+12%) or poultry ( +10%).
1690780467
#price #food #products #remains #high
