Food industry prices are expected to rise even further

The Finnish food industry is in a serious situation, states the CEO of Elintarviketeollisuus ry (ETK). Mikko Käkelä.

Last summer’s relatively weak harvest, the logistics problems caused by the pandemic, and the price increases of raw materials and energy caused by the war in have significantly increased the costs of agricultural production.

"As a result, the food industry now pays significantly more for primary production than before. Consumers must be prepared for the fact that already in autumn, food will cost significantly more than before," said Käkelä.

Almost everything is in short supply

The difficulties in the food industry are not only related to the rise in the prices of raw materials or energy. For example, there have been problems with the availability of plastic, cardboard, aluminum cans, glass jars, and even packaging labels have been a problem in the last six months.

Costs have also been increased by the industry’s efforts to wean itself off Russian fossil fuels.

"These cost pressures have not yet been transferred to customers, i.e. the retail, restaurant and public procurement sectors. No product group is immune to upward pressure," says Käkelä.

The challenges will continue for a long time

In , cost pressures have not shifted as quickly as in other countries, such as .

Even though the food chain is now facing major challenges, Käkelä urged people to stay calm and refrain from hoarding products.

"In Finland, the food self-sufficiency rate is 80 percent. Yes we have enough food and drink," Käkelä emphasized.

Käkelä predicted that the situation will continue to be challenging throughout the next year and that the hardest pressure has not yet been felt. However, he believed that the situation would calm down at some point.

There are approximately 1,800 food industry companies in Finland, of which 600 belong to ETK. The Finnish food industry directly employs around 38,000 people and indirectly around 300,000 people.

Source: The Nordic Page




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