Finance
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Education
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Main Content
How fair are the prices we pay for food?
Winners and losers in the alimentary market
Supermarket chains and food producers
The relationship between these fundamental players has always been ambiguous and tense. The former have the decisive power to control and change prices and the latter must adapt. As the world economy heads for recovery, big companies and supermarket chains will have substantial opportunities to profit. As a result of the low interest rates, they will be able to take higher risk opportunities with premium yield. On the other hand, agricultural producers and workers once again will be "pressed" to accept whatever conditions are forced upon them.
Income down in the agricultural sector
The same database indicates a significant fall in producer prices (8.7%) due to depreciation of animal production during the last year. This information clearly shows that both agricultural producers and workers have to bear a considerable net income loss. In comparison, consumer food prices in many European countries and around the world have been steadily rising, especially in 2007 and 2008. Forecasts indicate the trend will probably continue in the coming years.