Unjustified food price hikes expected next month

| Sat, 08/18/2007 - 06:29

The price hikes for food products expected next month are unjustified and risk having a negative effect on retail sales of these products, the Colidretti farmers' union said.

Economists expect to see a sharp increase in wheat-based products this autumn due to a growing demand for wheat and other grains for use in making bio-fuels.

Sales of bread have already fallen by 8.8%, while those of pasta have dropped 5.4%, the Coldiretti recalled.

According to the union, wheat prices at the farm are the same as during the 1990s, although they have been even lower since them and have recently been on the rise.

Compared to what the farmer receives for his wheat, Coldiretti observed, the retail prices of bread, fresh pasta and pastry products are respectively 15%, 20% and 70% higher.

"For every euro spent for fresh pasta, the farmer receives no more than 5 cents. Thus the farmer cannot be blamed for the upsurge in consumer prices," Coldiretti said.

The union also pointed out that "one kilo of wheat, sold by the farmer at a price of 20 cents, can be transformed into flour which, when mixed with water, can produce one kilo of bread that at a retail level sells for 2.5 euros for basic bread and as much as 5 euros for the more elaborated varieties. The price is even higher when the flour is transformed into baked sweet goods".

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