Farmers and supermarket chains are refusing to impose a ceiling on basic food prices proposed by Second Vice President and Labor Minister Yolanda Díaz. head COAG In the region, José Miguel Marín believes chains will continue to maintain profit margins at the expense of paying suppliers less. “There would be a pressure we couldn’t take and eventually they will stop growing products with a ceiling,” said Marín. He recalled that European regulations prevent price fixing and noted that there is no consensus within the Government as well. Supermarket chains cost more when they have no other choice, because “consumers will buy elsewhere if prices go up”.
Yolanda Díaz advocates wide distribution and reaching an agreement with consumers ‘limit’ the price of basic food to curb the rise in the price of the shopping cart. However, the Minister of Agriculture louis planessaid the offer was not viable in a free market economy, because the legislation does not allow it.
José Miguel Marín argues that “everyone should have an interest” and “Links in the food chain have to pay their costs and make a reasonable profit.“However, one wonders how it is possible that products like watermelons, which are paid 25 cents to farmers in normal years, cost two euros in a supermarket 30 kilometers away. No one explains it.”
He also gives as an example peach box Paying a little over 80 cents in the field, Cieza costs well over three euros at the big chains.
The COAG president thinks the only alternative to preventing consumers from having to pay exorbitant amounts for products that the farmer has practically priced at cost price is the “Food Chain Act, which prohibits work at a loss.”
José Miguel Marín warns that if food prices are capped, “chains will try to maintain profit margins at the expense of their suppliers.” “It would be a pressure we couldn’t bear.”. He believes that if farmers’ incomes were further reduced due to lack of profitability, they would “stop growing” and for that, “we should think better about what we can do”.
Javier Ruano, managing director of the Association of Regional Supermarkets (Asumur), provides on his behalf: distribution chains strive to delay the transfer of costs to their products.“because there’s a lot of competition, and if consumers see prices go up, they’ll buy elsewhere.” The employer’s representative proposes the reduction of food taxes and the “postponement of the plastic tax,” which will take effect next year.
Ruan, “In Spain, the five major supermarket chains hold 50% of the market.”, the rest is distributed among a large number of companies. “There is a lot of competition and it forces us to control prices,” he assures. “In Scandinavian countries the concentration of the distribution market in large chains reaches 80%. Spain is the country where there is more competition. intercompany competition,” he says.
He attributes the increase in linear prices to the intermediaries. and an increase in electricity and gas costs consumed by cold storage and logistics, “representing 40% of the cost”. He adds that raw materials, as well as packaging, plastic and other materials, are becoming more expensive.
Small traders are also not in favor of limiting prices. José García, president of the Santa Florentina Market Merchants Association, It would be “extremely complex” to implement this measure in the food market., given that the prices of all products (vegetables, fruit, meat and fish) “vary a lot on a daily basis, both up and down.” The volatility, which “depends on many factors that change depending on the season, such as the quantity and quality of the produce,” therefore “which foods a price cap would cause some traders to suffer,” he said.