Thursday, August 30, 2007

Price increase: Who profits from expensive food?

From view of the food processing plants the farmers are earliest the winners. „The price history with the raw goods is frightening. Milk powder is 60 per cent more expensively, strawberries for jam more than 50 per cent “, says Josef Domschitz of the food federation. In addition come higher transportation and packing costs, which make to create the food-processing industry. Because easily price increases are not to be passed on in view of the competition pressure in the trade. Domschitz counts however that for instance apple juice will become clearly expensive also in the supermarkets soon.

The farmers see themselves already partially as the winners of the present situation, but not as price drivers. Debt at the high prices they give to the strongly rising demand in Asia and the weather development: Rains, Dürre in April and Hitze in July lead and led to high harvest losses. And they point out that their portion of the expenditures for food sinks continuously, because the trend goes toward „Convenience “, thus fixed and finished processed goods like Backrohr Pommes frites.

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