Food manufacturers demand further price increases from distributors

They are fighting to pass on their soaring costs and revise the agreements reached at the end of February. FMCG players are engaged in a similar battle. Stepped up, the government convened two meetings on Thursday.

Repeat again. Two months after painfully concluding their annual price negotiations with the purchasing centers of large retailers, the food and consumer products (PGC) manufacturers are once again on a war footing. Their puzzle: to pass new price increases.

Since the invasion of Ukraine by the Russian army at the end of February, they have been faced with a new spike in their costs, in addition to that caused at the end of 2021 by the strong post-Covid recovery. With the war and the sanctions, no position is spared, starting with agricultural raw materials: cereals, oils, butter, coffee, sugar… The other costs are also soaring: energy, packaging, logistics, labor, with a quadrupling of certain bills (gas, transport, etc.).

The equation is untenable, according to the food industry. And all the more so since in March, they had only been able to pass on half of their negotiated rates for 2022…

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