Food prices continue to rise, and potatoes are likely to cost the French more. Producers have to deal with the increase in costs in addition to the drop in yield linked to the drought.
Since the inflation linked to the war in Ukraine, the French have seen their energy bill increase. Between the rise in the price of gasoline, the increase in the price of gas and electricity, it is now the water bill that is likely to increase. And in basic necessities, the cost of the food basket also weighs heavily on the French budget. The addition could well increase further with rising potato prices.
The increase in the price of potatoes is linked to Drought which impacts the yield of producers, but also the increase in their costs. Professionals anticipate a price increase of 30% in supermarkets. This increase would offset the cost of production for producers. Indeed, a producer explained that he was experiencing a 25% increase in his costs. And this, because of the fuel oil, the agricultural machinery and the workforce.
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The selling price of potatoes may not increase
In addition to the 25% increase in producer costs, the drought caused a 20% drop in yield. As a result, he is forced to raise his prices. “We went from five euros per 10 kg bag to six euros” explains the producer. However, this price increase may not be passed on to consumers.
Indeed, large retailers could have a role to play in saving the wallets of the French. “When you buy a potato in a supermarket, the producer only captures 20% of its value. Large distribution captures 50%. If the large distribution played the distribution game better, the farmer could benefit from this increase in purchases without necessarily passing on to the consumer”explains the president of the National Union of Potato Producers.
To be continued…