The Agricultural Cooperation warns of the risk of production stoppages due to energy prices.

I reproduce here the press release of the Agricultural Cooperation. It’s time to have some stashes of cans and lentils in your cupboards.

Everything is said there.

I have nothing to add.

And it’s all very predictable.

Government stars. Stars.

Charles SANNAT

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Since 2021, the food sector has experienced an inflationary crisis that has not happened in more than 40 years in all the costs of agricultural and agri-food production. Added to this situation is the concern about the availability of raw material resources and labor to process them, thus threatening the continuation of production activities. Faced with this very alarming observation; This is an urgent reaction to ensure food security in our country.

The risk of production interruptions and failures in agri-food industries has never been more real. No company has escaped this major crisis affecting prices and availability of inputs (stopping 50% of ammonium nitrate production capacity in Europe), raw materials (-50% of bean production volume and -4% of milk production volume), energy (+about 350% cumulative increase since 2021 for the price of natural gas and electricity) and packaging (+40% for plastics and paper-cardboard).

Among all these increases, energy is the biggest expense for businesses. Today’s energy bills are unsustainable for cooperatives. If we want to continue eating French, we need to immediately:

The identification of agricultural and agri-food activities as responding to a mission of general interest,
The revision of the eligibility criteria for managing the energy bill of companies,
Building a more efficient energy shield,
Indexing energy costs to food prices.
At the same time, we must act at the level of trade negotiations to make the important consideration of inflation in food production costs when fixing product prices. This is why we must ask:

Changing the temporality of commercial negotiations: it is necessary to renegotiate prices according to inflation or the deflation of production costs,
The establishment of a moratorium on logistics sanctions,
The consideration of industrial costs in the evolution of product prices through indicators of different cost items (energy first but also packaging, logistics costs, etc.).
“The situation is serious: the historical situation of production cost inflation that we are experiencing is a real threat to the ability of companies to continue their production activities. We need to react quickly, our country’s food security depends on it. To face this impregnable wall, we must act as a priority to ensure the availability of energy for food companies and limit its costs. said Dominique Chargé, President of La Cooperation Agricole. “While we have built our supply chains on the basis of a stable and abundant world, the transition to a world marked by instability and possible shortages requires us to change the paradigm. In this sense that La Cooperation Agricole hopes that, in addition to the future agricultural orientation law, a sovereign agreement can be made between the players in the food chain, public authorities and consumers. The collective commitment prompted by the signing in this Pact will ensure the maintenance of a French food chain that is strong, sustainable and sustainable.”, he continued.

Source The Agricultural Cooperation here

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