If anyone thought that the main wave of food price hikes was behind us, they should reduce their optimism considerably. On the contrary, more and more news from the food sector indicates that a real price increase is yet to come.
Manufacturers must act now
While in the spring, in particular, retail chains let themselves go up in price, because everywhere there was talk of how prices were rising. However, the food manufacturers themselves have therefore raised the price more aesthetically. They had fixed prices for energy and raw materials. They also hoped that the situation would calm down and they would not have to raise prices that much.
But the situation has not calmed down much, indeed it has worsened as regards energy prices. And while the state will help families and small businesses with electricity and gas prices, the larger producers supplying retail chains will have to pay the full cost of energy. Some are already reporting that their energy prices have increased twelvefold. And they are still fine. Several companies in Germany report having to pay up to thirty-five times more for energy than in the past period.
At the same time, the food market is closely connected and, for example, it is from Germany that Czech retail chains buy a significant part of their food. Therefore, it is practically impossible to avoid further price increases. At the same time, this can be well demonstrated on an item, which people can hardly do without and which are very price sensitive.
A cheaper alternative may emerge
For example, the director of the large Interlaco dairy group, Martin Hudík, warned on CNN Prima News that the price of butter will soon rise to 80 kronor. According to him, it is a real scenario. Butter would therefore cost more than ever before. “At that price I would not buy butter anymore, I would have to replace it. Cooking for Christmas wouldn’t be so good, but I have to get by somehow,”Said Ms Miroslava in Kaufland in Prague, when we compared it with the possible new price of the product.
We are talking about high quality fresh butter. It may happen that, as a result of price increases, retail chains reach their preferred solution and bring one or two-year thawed butter from state stock supplies to the Czech Republic. Such a product is usually cheaper and goes to various events.