Lactalis to increase prices due to Middle East war impact
On Friday, April 17, Iran announced the reopening of the Strait of Hormuz “for the remaining duration of the ceasefire”. This ceasefire, extending until Wednesday, April 22 for now, brings some relief. However, the impact of the war in the Middle East continues to affect France. Grégory Caret, director of the Consumer Observatory of UFC-Que Choisir, explained the situation on Saturday, April 18.
“We met some professionals who are facing significant surcharges, especially farmers, who report not only increased fuel costs but also all fertilizers. Industrialists also say they are facing significant surcharges due to gas,” he said. As a result, price hikes are expected despite fixed prices for the year between manufacturers and retailers, subject to price increase clauses.
According to Caret, this increase could be around “4 to 5% in the coming months on shelf prices”. “In the short term, it will be products with the fastest turnover and short expiration dates,” he emphasized. These include fresh products and dairy products. This analysis aligns with Lactalis’ announcement on Thursday, acknowledging the need to reflect the impact of the war in the Middle East on consumer prices.
Other sections of the market are likely to be affected, including hygiene and cosmetics products. “There are many hydrocarbons in these products and their packaging,” noted Caret. However, this increase is not expected to match the 20-25% surge seen at the beginning of the conflict in Ukraine in 2022-2023, he further clarified.
Published on April 18 at 7:20 pm by Théo Rampazzo, 6Medias
