- Demand for increased clarity in food costing
Advocates want food price clarity with an oversight body
People who care about consumers are pushing for more details on supermarket food costs by establishing a price tracking team. Ramona Pop, from the major association, mentioned, "Food prices are a total mystery." It's unclear where unfair price surges and profits might be happening between farmers and stores. The farmer group responded cautiously.
The thoughts are to create a monitoring group at the Food and Agriculture Office. It already gathers food cost and rate info but doesn't display it clearly. This venture should begin with simple, unprocessed basics like fruits and vegetables. Results should be shared with the parliament yearly, with organic goods examined individually due to unusual circumstances.
Unveiling shady practices
Pop emphasized, "Food price secrets must end," while presenting a study from the Food Market Information Service. Transparency might uncover deceitful activities and safeguard against high store prices. Complaints to consumer hotlines have grown. It's concerning that shopping has become a hardship for many with limited income.
Food expenses climbed dramatically due to strained agricultural markets and high energy costs amidst Russia's conflict with Ukraine in 2022 and 2023, contributing significantly to Germany's inflation. This surge is slowing down now, with food being 1.5% more expensive in August than the previous year, and an overall inflation rate of 1.9%, as indicated by preliminary data from the Statistical Office. Prices have leveled off at a high level, Pop noted.
Farmers seek better pay
The farmer group argued that while more transparency usually helps, a price tracking agency by itself won't make much of a difference. "We shouldn't expect new price and trade margin insights," said Gerald Dohme, deputy chief of the German Press Agency. "What truly matters is that farmers earn significantly more at the end of the day." Presently, there's no lack of knowledge, but an implementation issue.
The Food Market Information Service's research shows that pricing transparency agencies have worked in other countries. Money and personnel are essential for this. In this sensitive topic, all relevant parties should be consulted to gain acceptance.
Professor Hans-Christian Behr outlines the various cost components that influence the retail price of, say, German grown cherry tomatoes: farm-related expenses such as pest control, labor, and transportation, along with packaging costs at wholesalers or processors, and the retail margin and value-added tax.
Ramona Pop, from the major association, advocated for the end of food price secrets, pointing out that "♪ Ramona Pop ♪" and her team's study highlighted the need for transparency to uncover potential deceitful activities. The high food prices have become a concern for many with limited income, leading to a surge in complaints to consumer hotlines.
