MEPs’ vote highlights food price increase issues
MEPs called on the European Commission and member states to analyse discrepancies between farm gate prices and the prices charged in the major supermarket chains, after a resolution was adopted by 464 votes in favour, to 30 against and 44 abstentions.
Neil Parish, one of the MEPs, said cereal prices have risen threefold this year, and the livestock sector is having a huge problem, having seen its feed costs going up by perhaps 50 or 60%.
The Parliament heard that the rise in the cost of raw materials affects every process in the food industry, with the increased price of cereals transferred from growers onto feedstuff manufacturers, then onto livestock farmers, meat processors and finally, retailers.
Retailers faced a dilemma of whether to increase prices in their shops, or swallow the costs themselves. Britain’s Asda supermarket chain has said it will absorb many of the increased food costs, in order to keep prices low for consumers.
Meanwhile, in Germany, the Metro shops have taken Kellogg’s products off their shelves, after the cereal company attempted to pass on higher grain costs through price hikes.
MEPs also urged the European Commission to authorise direct payments to livestock farmers, especially to those affected by disease outbreaks, as they may face financial difficulties due to higher feedstuff prices.
But Michael Mann, the Commission’s agriculture and rural development spokesman, said food inflation has remained limited so far. “Some foods are increasing in price, others have actually declined.”
MEPs rejected any moves to impose export quotas and tariffs on EU agricultural production. However, they demanded that third-country operators be subjected to the same stringent controls as EU producers.
