Soaring prices: have our breakfasts become unaffordable?
High prices for a long time…
They are therefore not about to lower their selling prices even if, on the international markets, certain prices have eased a little. “The price of a liter of milk paid to the farmer in March 2023 is 5% lower than in March 2022confirms Renaat Debergh. It’s not huge. But, in the context of general inflation, I do not believe that we will return to the prices before, to the 30.5 euro cents per liter paid to the producer as in 2021.” In its “Short Term Outlook for EU agricultural markets in 2023”, the European Commission notes that “consumer prices for dairy products continue to rise in the European Union.”
…and consumers adapt
Small glimmer of hope perhaps since, according to this report, “butter has peaked “. But for the moment, he is the only one… And in any case, what is certain is that consumers are adapting to this environment of expensive dairy products since, still according to this study, “consumers would look for cheaper options rather than reducing their consumption [de produits laitiers]. Premium and branded products are suffering the most.“
A touch of sweetness to stave off inflation ?
A small layer of jam or honey on a slice of toasted bread to treat yourself, why not? Except that in this case, it’s rather a false good idea: over one year, the price of jams, marmalades and honey has increased by 21.1%! It is true that over the same period, the price of sugar soared by 32%! So, as long as you play the sweet card, you might as well choose a piece of chocolate, its price has certainly increased, but relatively less (+12%).
Risk of shortage for orange juice
Many do not know it, but orange juice is listed on the stock exchange. Its price has soared there since the beginning of 2023, simply because there is a risk of shortage. “Orders from concentrate suppliers are now subject to quotas for all companies wishing to buy concentratesemphasizes the (French) National Interprofessional Union of Fruit Juices. [C’est] a situation never encountered by the oldest buyers!“
Global warming largely explains the current difficulties. The world’s second largest producer of juice oranges, Florida has still not recovered from Hurricane Ian in September 2022; production in Mexico fell by 30% due to drought. Ditto in Spain, another major supplier of citrus fruits. But it’s not just that, according to Unijus, which indeed adds that “Florida is withdrawing from citrus cultivation in favor of real estate construction. As a result, American juice manufacturers are turning to Brazil, a country where 85% of orange juice is controlled by three players. The flows that were headed for Europe are now being diverted to the United States, which is creating pressure on prices. The ton of concentrated juice is bought today at 3400 € per ton against 2600 € during the previous harvest“. Which will inevitably have an impact on the price of orange juice in stores.