In Poland, the largest food producers warn that due to the rise in energy prices their products will go up, writes Business Insider Polska. Producers of meat and sugar are especially worried: their costs have increased several times, which will affect the purses of Poles. Moreover, given the significant export share of these producers, sugar and meat prices will jump all over Europe.
The largest food companies were not affected by the mechanisms of aid introduced by the government due to high energy prices. And since they will have to pay much more for electricity than before, the price increase is being passed on to customers. The largest Polish food companies admit that it is impossible to avoid. They fear even worse scenarios, writes Grzegorz Kowalczyk.
The government has prepared protective mechanisms for small and medium enterprises, so that these companies pay no more than 785 zlotys per MWh for electricity. However, this decision does not apply to the largest companies, including those responsible for food production, which is one of the main factors of inflation. The largest producers point out that in the current situation they will have to raise prices significantly next year as well.
“Already now the cost of production has reached a very high level, which, of course, leads to higher prices. Failure to impose maximum energy prices on the largest food companies, which are the main food producers in the country, will further exacerbate the situation. Ultimately, consumers will feel it as they make their daily purchases. It is impossible under such unfavorable external conditions to completely avoid an increase in food prices on store shelves,” admits Bogusław Miszczuk, head of meat company Sokolów.
Another major Polish poultry processor Indykpol also confirms this. In his case, electricity bills are increasing several times, although the final amount is still unknown. “Unfortunately, the price fluctuations for both the spot market and the futures market are so great that it is difficult to predict exactly how much our bills will increase. Even though our company focuses on renewables, we can talk about bill growth in 2023 in millions of zlotys,” reassures Michał Bitner, Indykpol’s board coordinator.
“According to our calculations, in the whole cycle of sugar production – from cultivation to logistics – energy has risen almost threefold on average,” says Roman Kubiak, chairman of the board of sugar producer Pfeifer&Langen Polska.
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