APED – Portuguese Association of Distribution Companies, in its announcement, clarified the information provided by the Ministry of Economy and the Sea on the prices of food products.
According to the association, “it is necessary to tell the truth to the Portuguese and clearly explain all the factors that lead to the increase in food prices.” “The industry has had a dialogue attitude and had the opportunity to explain to the government the reason for the price increases and what is happening across the value chain. The reality experienced in our country is based on a set of factors related to production, industry and transport. By putting the reality of these three links in the distribution chain into perspective, an explanation emerges for the increase in product costs, which is reflected in the price distribution presents to the consumer,” he explained.
“The analysis must be done taking into account the specificities of the country in terms of access to these elements that contribute to the final price, as shown by the figures released by the INE:
“Between January and December 2022 compared to the same period the price index on the agricultural production side increased by 33.6 percentage points (from 2.3% to 35.9%), on the food industry side it increased by 18.4 percentage points (up from 13.3% to 31.7%) and the food price index in food distribution/retail increased by 16.2 percentage points (up from 3.7% to 19.9%), still below that of the food industry by approximately 10 percentage points”, APED pointed out.
Thus, “distribution buys more and more expensive products, already in 2023, from suppliers (industry and production). These increases at the top of the chain reflect the increase in input costs resulting from increases in the prices of fertilizers, animal feed and other related costs,” he said, citing the case of milk, which is 75% more expensive in stores . , exactly the increase that the suppliers passed on to the distribution.
Finally, APED expressed its regret that “ASAE produced a report that the distribution industry is neither aware of nor invited to contribute to,” stressing that the industry has always cooperated with ASAE.
“The distribution industry acts seriously, responsibly and with respect for the law and consumers and cannot accept to be left with the curse of inflation and price increases. We are one of the most controlled economic sectors and this is a reality that can be seen naturally”, APED pointed out.
“As happened, for example, during the pandemic, the industry sought to fulfill its mission of guaranteeing basic goods to families, even in the face of restrictions and effects arising from the war, i.e. the increase in the cost of production factors, the energy costs, fossil fuels and logistics and transport”, he concluded.
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