Power: lower prices benefit consumers, weakens … – La Voix du Nord

The decline in food prices in 2014, after several years of growth has primarily benefited the consumer, despite minimal effect on his chariot racing, but weakened throughout the food chain, farmers in mind.

In this case, “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 of price formation and margins of food products, by presenting its fourth annual report.

The document was developed with representatives of farmers, manufacturers, distributors and consumers.

In addition to lower prices for consumers, he noted that the distribution began to rebuild its margins but producers are still in a very precarious.

In detail, prices paid by the consumer for the purchase of food products fell on average by 0.7% last year.

The change may go unnoticed enough on the receipt, but it s’ is the “first annual decline since several years,” the report said.

At the same time, after a “higher” in 2013, prices paid to farmers decreased by 5% as the influence of the fall in commodity prices. Those obtained by agribusiness 2%

Price developments in the field does not necessarily reflected to the plate. For meat for example, producer prices have down 6 to 8% while retail prices rose by 1%

There are significant disparities. meat beef and pork, and pasta falling sharply. But milk prices rise, not yet not yet reflected declining world during the late 2014

-. ‘The consumer does pay the right price?’ –

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 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” farmers.

“The farmers now tie the knot”, has also reacted FNSEA. The first agricultural union asks: “Does the consumer pays a fair price of products?”

The report also highlights the difficulties of some processors, meat industry in mind, due to the “weak net margin” to less than 1% of sales.

distribution side, the average net margin is “steadily declining for three years”, 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 has allowed supermarkets to begin to restore its profit 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 central? s end purchases 2014, the pressure on prices continues in 2015, weakening all the actors of the French food chain and significantly hinders its ability to invest, hire, innovate and 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.