International

Italy: Soaring gas and energy costs threaten the meat industry

In recent days, alarming complaints received by ASSICA (Industrial Association of Meat and Cured Meats belonging to Confindustria ) from numerous associated companies regarding the unsustainable costs of energy bills has intensified. The further risk of the interruption of the gas supply starting from next October - proposed by various supplier companies - could even sanction the impossibility of continuing to operate due to the lack of energy supplies.

Posted on Sep 09 ,04:36

Italy: Soaring gas and energy costs threaten the meat industry

“The situation is truly dramatic, in light of the further and unimaginable price increases recorded in recent weeks. The bills in July saw amounts up to six times higher than in the same month of the previous year and the situation in the international markets does not seem destined to improve - said Ruggero Lenti, President of ASSICA. It is a matter of millions of euros of difference on the annual financial statements of the companies and a real risk of closures with strong losses ” .
“Since the last months of 2021, our companies have been complaining about costs for the energy component out of control, which have been added to the increases in the costs of raw materials, which have now reached very high values. We are aware that increases in the prices of finished products can depress consumption, especially in this historical phase characterized by strong growth in inflation, but a more equitable redistribution of the value of products within the supply chain, which ends with distribution, cannot be postponed. ” - continued Lenti.

“We are clamoring for the government to tackle this emergency decisively and for the Regions to intervene promptly in the areas where the greatest problems are encountered. It is not only the costs that are worrying, but also the mere availability of gas to power the plants for next autumn. Margins are getting lower and the risk of closure is a nightmare for many producers, with the serious consequences of economic / social impact that would ensue. It is not time to make electoral campaign proclamations, but the time has come to act promptly ” - concluded the President.
ASSICA is working, in close coordination with Confindustria, to provide all useful data to support initiative proposals aimed at finding practical and solutions for the benefit of companies, through a more precise examination of the impact that energy costs have on productions. The commitment is aimed at preventing the surge in energy costs from translating into substantial increases in the prices of products on the shelves, a situation that would unload high prices on consumers that are not directly dependent on the Italian production system.

World food commodity prices dip for fifth month in a row in August

The barometer for world food commodity prices declined for the fifth consecutive month in August, as quotations for most benchmark items dropped, according to a new report released by the Food and Agriculture Organization of the United Nations (FAO).
The closely watched FAO Food Price Index averaged 138.0 points in August, down 1.9 percent from July although remaining 7.9 percent above its value a year before. The Index tracks monthly changes in the international prices of a basket of commonly traded food commodities.
The FAO Cereal Price Index decreased by 1.4 percent from the previous month, a drop driven by a 5.1 percent decline in international wheat prices that reflected improved production prospects in North America and the Russian Federation as well as the resumption of exports from the Black Sea ports in Ukraine. Rice prices on average held steady during the month, while quotations for coarse grains increased marginally, by 0.2 percent, as firmer world maize prices due to hot, dry growing conditions in the European Union and the United States of America were offset by lower barley and sorghum prices.

The FAO Meat Price Index declined by 1.5 percent from July, but it remained 8.2 percent higher its value a year ago. International quotations for poultry meat fell in August amid elevated global export availabilities, while world bovine meat prices declined on weak domestic demand in some leading exporting countries. Pig meat quotations rose.
The FAO Vegetable Oil Price Index decreased by 3.3 percent from July, reaching a level slightly below that of August 2021. World soy oil prices rose moderately due to concerns over the impact of unfavorable weather conditions on production in the United States of America, but the gain was more than offset by lower quotations for palm, sunflower and rapeseed oils, reflecting increased availabilities of palm oil from Indonesia, due to lower export taxes, and a gradual resumption of sunflower oil shipments from Ukraine’s ports.
The FAO Dairy Price Index decreased by 2.0 percent in August, while remaining 23.5 percent above its August 2021 value. World cheese prices increased for the tenth consecutive month, while those of milk eased amid expectations of increased supplies from New Zealand, even as production tracks lower in Western Europe and the United States of America.
The FAO Sugar Price Index decreased by 2.1 percent to its lowest level since July 2021, triggered mainly by high export caps in India and lower ethanol prices in Brazil.

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