Faced with the very sharp rise in production costs in the agri-food industry, French companies are sounding the alarm and asking all stakeholders to take this unprecedented situation into account.
The 600 French agri-food companies that are members of ADEPALE (Association of Processed Food Products Companies) and the FEB (Federation of bakery and pastry companies) have been facing for several months a widespread and unprecedented explosion in all of their production costs. They are sounding the alarm in the face of this situation which is further weakening the sector, already heavily impacted by the Covid-19 crisis., jeopardizing their economic balance. They ask, urgently, to all players in the sector to take this serious and exceptional situation into account by showing solidarity and understanding both on availability and deadlines and on the inevitable and vital impact of these additional costs on prices.
A lasting situation of unprecedented magnitude
Indeed, all the signals are red and all the production costs of agri-food companies are experiencing a very sharp increase. Very highly processed agricultural raw materials under international pressure such as flour, dairy products (butter, milk powder,…), topping… Across-the-board 10-20% increase in all packaging, all materials combined : plastics, metals, carton, wood… With an increased risk of shortages on certain raw materials and significantly extended delivery times. This is a historic situation of unprecedented magnitude which endangers profitability and, for some, the viability of companies in the French agri-food sector. A phenomenon all the more alarming since several members of the Government have confirmed that it was not temporary and that it was likely to last over time. This is why the two Federations are calling with one voice for collective awareness and for each link in the sector to demonstrate responsibility.. A general pass-on of these additional costs on prices is vital in order to ensure the sustainability of companies in the sector and allow them to continue to produce., deliver, invest and innovate to preserve France’s food sovereignty
