The Agricultural Cooperation warns of the risk of production stoppage due to energy prices. – Insolentiae


The Agricultural Cooperation warns of the risk of production stoppage due to energy prices.  – Insolentiae
Written by madishthestylebar

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

Everything is said there.

I have nothing to add.

And it’s all so predictable.

Stars in government. Stars.

Charles SANNAT

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Since 2021, the food sector has been experiencing an inflationary crisis unprecedented for more than 40 years on all agricultural and agri-food production costs. Added to this situation is concern about the availability of raw material resources and labor to process them, thus threatening the continuity of production activities. Faced with this very alarming observation; it is urgent to react to ensure the food security of our Nation.

Never has the risk of production stoppages and failure of the agri-food industries been so real. No company is spared by this major crisis affecting the price and availability of inputs (stopping of 50% of ammonium nitrate production capacity in Europe), raw materials (-50% of bean production volumes and -4% in milk production volume), energy (+around 350% cumulative increase since 2021 for the price of natural gas and electricity) and packaging (+40% for plastics and paper-cardboard).

Among all of these increases, energy is the largest item of expenditure for businesses. Energy bills are now such that they cannot be absorbed by the cooperatives. If we want to continue to eat French, we urgently need:

The recognition of agricultural and agri-food activities as responding to a mission of general interest,
The revision of the eligibility criteria for taking charge of the energy bill of companies,
The establishment of a more efficient energy shield,
Indexation of energy costs in food pricing.
At the same time, we will have to act at the level of trade negotiations to enable the essential consideration of the inflation of food production costs in the fixing of product prices. This is why we necessarily ask:

The modification of the temporality of commercial negotiations: it is necessary to be able to rediscuss the prices according to the inflation or the deflation of the production costs,
The establishment of a moratorium on logistics penalties,
The taking into account of industrial costs in the evolution of product prices by means of indicators on the various cost items (energy in the first place but also packaging, logistics costs, etc.).
“The situation is serious: the historic situation of production cost inflation that we are experiencing is a real threat to the ability of companies to maintain their production activities. We must react urgently, the food security of our Nation depends on it. To face this insurmountable wall, we must act as a priority to ensure the availability of energy for food companies and limit its cost. says Dominique Chargé, President of La Coopération Agricole. “While we have built our supply chains on the basis of a stable and abundant world, the shift to a world marked by instability and probable shortages requires us to change the paradigm. It is in this sense that La Coopération Agricole hopes that, in addition to the future law on agricultural orientation, a sovereignty pact can be concluded between the players in the food chain, the public authorities and consumers. The collective commitment induced by the signing of this Pact will ensure the maintenance of a French food chain that is resilient, long-lasting and sustainable. “, he continues.

Source The Agricultural Cooperation here

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