After years of rising food prices declined overall in 2014. But the good news can be relativized. “The consumer is definitely the winner. The tragedy is that he did not realize it,” said Tuesday before the press Philippe Chalmin , President of the Observatory for pricing and margins of food products, by presenting its fourth annual report.
A fall insensible to the consumer
The document was developed with representatives of farmers, manufacturers, distributors and consumers. Besides lower prices for consumers, he noted that the distribution began to rebuild its margins but producers are still in a very precarious.
In detail, the prices paid by consumers for the purchase of food products declined on average by 0.7% last year. The change may go unnoticed enough on the receipt, but it is the “first annual decline since several years,” the report said.
… but deadly for producers
At the same time, after a “higher” in 2013, rates paid to farmers down 5% under the influence of lower raw materials. Those obtained by agribusiness 2%. Price developments in the field does not necessarily reflected to the plate for meat for example, Producer prices fell by 6 to 8% while retail prices rose by 1 .%
There are significant disparities: meat of beef and pork and pasta falling sharply. But milk prices rise, not yet not yet reflected declining world during the end of 2014.
There is probably not a farmer covering all its costs.
Overall in the last 10-15 years, the prices paid by the French for basic foods (ham, pasta, baguette, camembert …) remained stable, as the industry and distribution “dampen” the fluctuations of raw materials, a phenomenon “feature of the French system,” says Chalmin. But behind this stability for the consumer, “all the links are weakened” in the food supply chain.
“In the spring of 2015, there is probably not an agricultural producer who covers the entire production costs,” said Mr. Chalmin, the report highlights the “extremely precarious” of farmers.
“The farmers now tie the knot”, has also reacted FNSEA. The first agricultural union asks: “Does the consumer pay fair prices for products.” The report also highlights the difficulties of some processors, meat industry in mind, due to the “weak net margin” less than 1% of turnover.
… and beneficial to the retail
distribution side, the average net margin is “steadily declining for three years” to 1.1% and even negative in beef rays, waves and bakery, said in a statement the Federation of Commerce and Distribution (FCD), regretting that the report was not more forthcoming on the margins of major manufacturers.
Mr. Chalmin nevertheless believes that the decline in prices of agricultural commodities enabled supermarkets to begin to rebuild its margins in 2014 , “which may explain the tensions in the agricultural sector in recent weeks and months “.
In response to the report, the Association of food industry (Ania) denounces again the effects of the “price war” between distributors.
“Following recent mergers of central purchasing end 2014, the pressure on prices continues in 2015, weakening all the actors of the French food chain and significantly hinders its ability to invest, recruit, to innovate and to export, “says Ania.
To prevent agricultural production “is the one that suffers the most” price volatility, the Minister of Agriculture Stéphane Le Foll recalled that he had chosen to “force for dialogue and the organization of courses, “for example by facilitating the creation of farmer groups.
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