ITALY

ASSICA: The industry cannot bear the weight of price increases

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ASSICA, the Italian Meat and Cured Meat Industry Association, received liability challenges from modern distribution companies, requesting for a moratorium on list prices from representative associations, but the meat companies can no longer bear the burden arising from sharp increases in raw materials and energy.

Posted on Dec 27 ,04:18

"We have received appeals for liability from modern distribution companies, requests for a moratorium on list prices from representative associations, but companies in the sector are no longer able to bear it alone the load deriving from the strong increases in raw materials and energy” said Ruggero Lenti, President of Assica.

Thus, Ruggero Lenti, President of ASSICA, responds to the numerous voices that are rising from the distribution sector with the aim of transferring, once again, the weight of the increases to the links of the upstream supply chain.

The voice of the President of ASSICA is loud and clear:“The entire sector is in deep pain and by refusing the price adjustments, already planned, means putting at risk the stability of the entire pig production chain upstream of distribution: farms, slaughterhouses and cured meat factories. In particular, DOP products, the flagship of Made in Italy, suffer from the sharp increases in the cost of national raw materials. It is necessary to start a real and effective dialogue along the entire supply chain because everyone needs to share and collaborate in order to face this difficult situation.”

For many months, the companies in the sector have fully absorbed the inflationary burden or have transferred it to price lists only minimally compared to the increases in costs, to the limit of their possibilities. Indeed, inflation for cured meats is much lower than that recorded in other sectors (about 5% less). Today this weight can no longer be supported by industry alone.

"We are the ones making a sincere appeal to Distribution, aware that price increases of finished products could decrease consumption, especially in this complex historical phase, and we invite it to take responsibility, to share the commitment sustained so far by the industry, which allows businesses not to close and mitigates the impact on consumers and families.”

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