The business fabric is also doing everything possible to reduce the inflationary spiral and its efforts are not always recognized
These days there is talk of the famous income pact to preserve the social and labor balance, that is, accept companies and workers a transitory loss of wealth by sharing the costs: “Neither workers will be able to maintain their purchasing power in the short term, nor will companies be able to maintain its margins. Perhaps it is not the most seductive, although it is also possible that this lesser evil can be understood in the middle of the storm, accepting losing in the short term to achieve a gain in the medium and long term.
The food sector is no stranger to turbulence and the current atmosphere is reminiscent of the haze of recent days, rarefied and almost unbreathable. The rural environment continues to suffer from the crisis and expresses its discontent with protests and mobilizations due to the “brutal rise in costs”, demands that will never fall on deaf ears on our part. Carriers resort to strikes to assert their claims, endangering the food supply chain. In turn, with inflation of 7.6% in February and forecast of 8%, the citizen suffers a loss of purchasing power, with a perception in addition to the Spanish consumer that prices have risen well above what they really have made. The Government working against the clock to make the price of energy more flexible… And in the midst of this uncertain scenario, what happens to the transforming industries?
Perhaps it is necessary to remember our role during the pandemic with our workers at the foot of factories and warehouses to secure essential food. Or significantly favoring the growth of less populated rural areas in terms of employment, investment attraction, contribution to public coffers, maintenance of infrastructure and services or gastronomic claim and sustainable management.
Many food and beverage companies are highly engaged with the situation in the field. But it is not always known that the demands that we are trying to satisfy to achieve a fair remuneration of farmers and ranchers also affect our cost structure, in the case of the sale of milk with very low margins for the manufacturers. Rising costs, which do not stop at the primary link and which are being subjected to a spiral never seen before in the following steps of food transformation.
The availability of supplies remains low and, consequently, the prices of many raw materials necessary for our industry increase exponentially. Without forgetting the energy bill of the plants and facilities that continues through the roof due to the price of electricity linked to the price of gas. The operations, purchasing and procurement departments have been working on the wire for almost two years to ensure deliveries with suppliers and safeguard the food chain.
We urge the Government to accelerate the plans to mitigate the effects of the crisis
It is not about shouting louder than the others or entering into a dynamic of irresponsible victimization, but it is about valuing and recognizing in its fair measure the effort and responsibility of the food industry for daily offering quality and safe food to Spaniards through despite the difficulties and with no visible cracks in our complex supply chain. We also talk about looking for alternatives that help weather the storm with the least possible damage. The Bank of Spain’s Survey on Economic Activity indicates that “three quarters of companies have to assume an increase in costs as a result of higher intermediate consumption costs, but only 30% of them increased the sale price of their products”. The business fabric is also doing everything possible to reduce the inflationary spiral and its efforts are not always recognized.
We urge the Government to accelerate the measures and plans to alleviate the effects of the new crisis, studying measures to make electricity, gas and fuel more affordable, assessing aid and tax rebates, seeking alternative markets for grain, oil and cereals. In the longer term, we need to change the EU’s strategy to reduce dependence on energy or the supply of basic raw materials for our industry. Meanwhile you have to compromise and agree. We don’t have all the answers, but we do have the will to keep looking for them. The food industry will remain at the foot of the canyon, no matter what happens.
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