Milk price alarm, could exceed 2 euros per liter

Milk price alarm, could exceed 2 euros per liter
Milk price alarm, could exceed 2 euros per liter
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Faced with expensive energy, the price of milk could exceed 2 euros per liter. The alarm was raised by the Granarolo and Lactalis groups for which it is “unthinkable that a primary and fundamental food in the Italian diet could suffer such a severe penalty as to reduce its availability for consumption”.

“Faced with a situation that does not allow for delays in political responses, the Granarolo group and the Lactalis group in Italy are overcoming the usual market antagonisms and, together, bring to the attention of the government the strong concern for runaway inflation that is causing 12 months affects the Italian agri-food industry and in particular the dairy sector. Public intervention is needed to avoid even more disastrous consequences for the thousands of companies that make up the supply chain ”, reads a joint note.

“Inflation – explain the companies – has significantly affected, with double-digit numbers, almost all the cost items that make up the milk supply chain: animal feed, which made it necessary to increase the price of milk by almost 50%. milk recognized to farmers, packaging, additional production components used in the production of dairy products. Today, however, the greatest concern is represented by the increase in energy costs which in recent weeks have increased to such an extent that it is difficult to transfer them to the market, in an economically complex moment for Italian families ”.

“Although both companies have autonomously absorbed inflation that fluctuates between 25% and 30%, the note reads, since the spring the price of milk for consumers has grown to reach 1.75 / 1.80 Euro / liter. (Nielsen data) and could increase further by December 2022. It is unthinkable that a primary and fundamental food in the Italian diet could suffer such a severe penalty as to reduce its availability for consumption “, they write again.

“As far as energy alone is concerned, if there is no turnaround, it is an inflation of 200% in 2022 compared to 2021 and a risk of over 100% in 2023 compared to 2022 – declares the president of Granarolo, Gianpiero Calzolari – It is unsustainable even by a large company, since it lasts over time and if it were downloaded as it is on the market it would significantly affect our consumers and would have inevitable consequences on consumption, with negative repercussions on the entire supply chain “.

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“The increase in the cost of energy on our organization has generated a devastating impact, which would have been even greater if we had not intervened with ad hoc coverings. We are talking about a + 220% of expenditure recorded in 2022 compared to 2021, and an estimate of + 90% in 2023 compared to 2022 “, says Giovanni Pomella, CEO of Lactalis in Italy, who adds:” Businesses are exhausted, they have already done far beyond their means and the time has come for public responsibility. In this dramatic situation, as entrepreneurs we have put aside market rivalries and we have joined our appeal to the political world to reiterate the need to intervene responsibly to protect the entire supply chain and the consumer ”.

“To date, inflation has led to a price increase of 23/24% but energy costs continue to grow exponentially. We are calling for a transitional measure to contain an increase in inflation triggered mainly by geopolitical issues and evident speculative phenomena. An urgent government intervention is needed ”, Calzolari and Pomella ask in unison.


The article is in Italian

Tags: Milk price alarm exceed euros liter

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