Highly fluctuating raw material prices will play an increasingly important role in the pricing of daily groceries in the coming years, according to FNLI. Products that depend on international markets, such as coffee and cocoa, are the most vulnerable. According to the organization, this is partly due to climate change, which affects harvests. But in addition, “geopolitical tensions and logistical challenges” also cause unpredictable transport costs. According to the organization, grains, the basis for bread, pasta and breakfast products, are also sensitive to these fluctuations.
Animal feed
Dairy and meat prices can vary due to varying animal feed costs, which in turn depend on global grain markets. According to FNLI, national developments also play a role. Due to the nitrogen discussion in the Netherlands and the buyout scheme for farmers, the supply will shrink, says FNLI. The meat industry stated last weekend that it expected beef to become significantly more expensive, partly because of this.
“While we were used to relatively constant prices, we will have to get used to a more dynamic market image,” the organization concludes. “There is a shared responsibility for the chain: ensuring affordability for everyone, without this being at the expense of the revenue model of farmers, producers and supermarkets.”