Milk for a gold price. It is perhaps a somewhat simplistic but very graphical summary of what will happen in Spain between now and the end of the year, regarding the costs of a core item in the shopping cart. Because what has happened for several months already – the average price of cow’s milk that the Asturian farmer bought in August was 46.6 cents per liter, 34% more than one yearAccording to Sadei, and it reached 49 cents in September, but the figure is not yet official – it will be higher as assumed in the manufacturing industry and distribution. If the initial payment to the farmer increases, logically, sales to the public will also increase. How much is the question.
Representatives of both sectors agree that “We are on our way to an unprecedented, record price”, although they do not dare to give figures due to the “volatility” of the markets. The fact is that some national chains are raising two to three cents per liter of milk on their shelves: prices generally range from 75 cents to euros.
Rarely the last part of a year has faced so much uncertainty, fear and doubt about what will happen to the economy, as in 2022, when no productive sector could escape the scourge of markets. But the agri-food industry is perhaps one of the most affected by the world crisis (the war in Ukraine has already exacerbated its aftermath) and has the most influence on the street because of how effective it is. It is affected by the increase in food prices, the production costs and the big repercussions this creates on the pockets of the citizens.
The shortage of produce added to the rise in milk prices is more evident in the rest of Spain than in Asturias, where farmers, industry and marketers ignore the lack of cartons and bottles for sale in stores and supermarkets. “There will be no supply problems” Maria BarradoCommercial director of Alimerka, the oldest supermarket in Asturias. However, we are concerned about the increase in the cost of this core product, which will inevitably lead to an increase in the selling price.”
Barrado is confident that “tensions” will ease soon, and “so that we can gradually return to normal. At Alimerka, we will continue to strive to offer our customers attractive offers each week so that the inevitable inflation situation disappears. We experience that living has as little impact as possible on their family’s finances.” “.
Alimerka, like other companies, has been adjusting prices for months, something that is not easy as everything is getting more expensive. “The increase in raw material, fuel and especially energy costs affects all links in the chain and the primary sector is one of the most affected,” says the commercial director.
“We go to great lengths to ensure that this has as little repercussions as possible on our clients, which has resulted in us incurring a number of extra costs. This is reflected in the most recent OCU report, which has made us the least likely Spanish driver to increase prices in the past year. supermarket,” says María Barrado.
Asturias is a national reference in terms of milk production, as the Minister of Rural Development stated a few days ago. Alexander Bald, who estimated that some chains pay the farmer up to 60 cents per liter. Calvo also asked not to be alarmed about the possibility of product shortages when deliveries fell and promised to work with the entire industry to prevent this, although it acknowledged a drop in production of around 5%. A slightly higher figure is led by agricultural organisations, which cite 8% and assure that the Principality is one of the regions where production has dropped the most.
In Central Lechera Asturiana (Clas), a benchmark in the dairy sector in the region, they get about 80% of the principality’s production from 945 farmers – counting 71 farms closed so far this year, which is an average estimate. eight to one month. In this historic and veteran farming society, they explain, “the pace of farm closure is not new, it goes way back.” What happens, they warn, “previously the number of farms fell, but the volume preserved is not. Now the amount of milk is also falling.” In 2021, the company collected 408 million liters.
However, there is no alarm about a possible shortage in the future at the Granda (Siero) based company, especially when there is a slight decrease in milk consumption, possibly due to increased prices at the supermarket. What is most closely observed is the unstoppably ascending evolution of payment. “As always, it’s a very complex industry and the current volatility of the markets is enormous. We’ll see what happens by the end of the year,” they agree.
The waiting, of course, is almost historical, with farmers claiming that the payout will increase at the source of a liter of milk. After years of demanding a commitment from the industry, they saw how the global market, not just the national, forced them to increase overnight. However, they warn that it is barely making up for it with the rise in the price of everything, and they want it to grow even bigger.
Source: Informacion
Christina Moncayo is a contributing writer for “Social Bites”. Her focus is on the gaming industry and she provides in-depth coverage of the latest news and trends in the world of gaming.