Food Industry trade unions warn: RON depreciation, higher costs will increase foodstuff prices by 6-8pc

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The increase in all cost of production and the depreciation of the national currency will lead to an increase of 6-8% in the basic foodstuff, Dragos Frumosu, president of the Federation of Food Industry trade unions (FSIA), has told a press conference on Thursday.

“Energy prices have increased, the prices of gas and other utilities have also increased. Sure, they do not represent much in production costs, but they do have an influence. Transport costs have also increased, with fuel prices up due to higher excise duties. All these will lead to higher foodstuff prices by 6-8%, and you know that 6% is not to be disregarded,” Dragos Frumosu said.

The trade union leader also pointed out that “70% of the meat used as raw material is imported, as well as 20% of the milk used as raw material or 5% of the frozen bakery products. Under these conditions, the RON depreciation will be seen in the prices on the shelf.”

Dragoş Frumosu estimates that food price hikes will start in March, because “until then there are still stocks and consumption is lower”.

The FSIA leader also said that foodstuff producers would not be able to absorb these cost increases so as to mitigate the price hikes, most of them being at the limit of survival.

“In order to avoid the price rises, small businesses – such as pastries or butcheries – should be closed down effectively, and the large firms working on shifts to give up production in one working shift.”

Finally, the trade union leader also pointed out that “the shelf charges collected by the retailers add 25-30% to the price of the products leaving the processing plants.”

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