Manufacturers seeking distributors of the impact of their expenses on the rise in agricultural commodities.
In Dordogne, Martine Specialties has a large rise in butter and flour. AD Sounalet
The rising cost of agricultural raw materials will impact on food prices in France. Last week, the Minister of Agriculture, Bruno Le Maire, termed "unavoidable" price increases for consumers. The subject has become very sensitive while difficult negotiations are underway between food manufacturers and supermarkets.
Sensitive point yesterday the Minister of Agriculture and Trade colleague, Frederic Lefebvre, met representatives of major players in the food chain (production, processing, distribution) inviting them to pass a "just up and controlled" (see below).
butter, flour, sugar Industrialists, especially, are on the frontline. "The subject is archibrûlant," says Didier Boudy CEO Martine Specialties, Condat-sur-Trincou (24). To develop its approximately 28 000 tonnes of frozen baked goods a year, this manufacturer uses several thousand tonnes of butter and flour. But it also uses large quantities of sugar, eggs, milk, "which many matters soaring one after all others ".
Illustration: "A year ago, I bought butter € 2.50 per kilo, now it is at 3.50 or 3.60. "Ditto for the meal:" We went from 250 to 380 euros per ton. "
Therefore, Martine Specialties (100 million euros in turnover, 500 employees), it becomes vital to be able to pass increases. "If we do not pass, you can die," said the CEO.
The company works mainly for brands such as Auchan, Casino and Super U. Didier Boudy not complaining its relations with these signs: "The supermarkets doing his job which is to get the best price, but she also knows to listen. So far we have come to pass between 70 and 80% of what we wanted. "Nevertheless," the extra cost incurred amounts to several million euros ".
For the first half of 2011, anticipating a new surge in the price of raw wheat may soon reach the "300 euros per tonne," Didier Boudy was already covered by reserving quantities: "I am covered in 380 euros per tonne of flour in two months I might have had to buy between 400 and 420 euros. "
Packaging, Transportation Martine Specialties is part of the 700 food companies in Aquitaine, a dynamic (5 billion euros in sales, over 30,000 jobs) which places the very first national ranks. Its president, Alain Cougrand, shares the concern of Didier Boudy, especially, he says, as higher agricultural commodity "added the rising costs of packaging and transportation."
These companies are mostly SMEs that do not want to see put in the same bag as the major industrial groups, "such as ministers are wont to do," he laments. "You're stuck between the Minister of Agriculture who wants better pay for farmers and trade minister who wants low prices for consumers. Now, in this context, the weakness of SMEs compared to large food groups is in a "negotiating capacity much less important."
Poultry: + 12% For Thierry Blandinieres, Group Chief Executive and Maïsadour Delpeyrat, the calculation is simple: "The cereals have increased by 100 euros per ton (140 to 240 euros) a year. The mechanical effect of this increase should be an increase of 12% on all products, poultry and ducks. Now, he notes, "with distribution, we get only repercussion of 4 to 5%. This is not acceptable. " Thierry
Blandinieres has been promoting, especially within Coop de France, the introduction of an indexing system which he said would "reduce the volatility" and "restore transparency to the consumer." Specifically: "Up to 150 euros per tonne of grain is still in negotiations with traditional commerce. Beyond that, it indexes upward or downward, as it is for fuels. "To the argument
often wielded by the distribution of preserve the purchasing power of the French in containing the rise in food prices, Thierry Blandinieres opposes "defend the purchasing power is good, but processors have them, to defend jobs."
Source: http://www.sudouest.fr/2011/02/03/forte-tension-sur-les-prix-308127-620.php
Sensitive point yesterday the Minister of Agriculture and Trade colleague, Frederic Lefebvre, met representatives of major players in the food chain (production, processing, distribution) inviting them to pass a "just up and controlled" (see below).
Illustration: "A year ago, I bought butter € 2.50 per kilo, now it is at 3.50 or 3.60. "Ditto for the meal:" We went from 250 to 380 euros per ton. "
Therefore, Martine Specialties (100 million euros in turnover, 500 employees), it becomes vital to be able to pass increases. "If we do not pass, you can die," said the CEO.
The company works mainly for brands such as Auchan, Casino and Super U. Didier Boudy not complaining its relations with these signs: "The supermarkets doing his job which is to get the best price, but she also knows to listen. So far we have come to pass between 70 and 80% of what we wanted. "Nevertheless," the extra cost incurred amounts to several million euros ".
For the first half of 2011, anticipating a new surge in the price of raw wheat may soon reach the "300 euros per tonne," Didier Boudy was already covered by reserving quantities: "I am covered in 380 euros per tonne of flour in two months I might have had to buy between 400 and 420 euros. "
Packaging, Transportation Martine Specialties is part of the 700 food companies in Aquitaine, a dynamic (5 billion euros in sales, over 30,000 jobs) which places the very first national ranks. Its president, Alain Cougrand, shares the concern of Didier Boudy, especially, he says, as higher agricultural commodity "added the rising costs of packaging and transportation."
These companies are mostly SMEs that do not want to see put in the same bag as the major industrial groups, "such as ministers are wont to do," he laments. "You're stuck between the Minister of Agriculture who wants better pay for farmers and trade minister who wants low prices for consumers. Now, in this context, the weakness of SMEs compared to large food groups is in a "negotiating capacity much less important."
Poultry: + 12% For Thierry Blandinieres, Group Chief Executive and Maïsadour Delpeyrat, the calculation is simple: "The cereals have increased by 100 euros per ton (140 to 240 euros) a year. The mechanical effect of this increase should be an increase of 12% on all products, poultry and ducks. Now, he notes, "with distribution, we get only repercussion of 4 to 5%. This is not acceptable. " Thierry
Blandinieres has been promoting, especially within Coop de France, the introduction of an indexing system which he said would "reduce the volatility" and "restore transparency to the consumer." Specifically: "Up to 150 euros per tonne of grain is still in negotiations with traditional commerce. Beyond that, it indexes upward or downward, as it is for fuels. "To the argument
often wielded by the distribution of preserve the purchasing power of the French in containing the rise in food prices, Thierry Blandinieres opposes "defend the purchasing power is good, but processors have them, to defend jobs."
Source: http://www.sudouest.fr/2011/02/03/forte-tension-sur-les-prix-308127-620.php
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