/Will the government freeze food prices, following the example of fuels? Food warners warn that this would be unsustainable
Will the government freeze food prices, following the example of fuels?  Food warners warn that this would be unsustainable

Will the government freeze food prices, following the example of fuels? Food warners warn that this would be unsustainable

Prime Minister Janez Janša said that the government also has a measure on the regulation of food prices

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After the government set maximum fuel prices and reduced electricity bills, it now has the possibility of regulating food prices on the table, and if necessary, they will do so, the Prime Minister said in a confrontation on Channel A Janez Janša. He did not explain in detail how to regulate prices, we are still waiting for a response from the government’s communication office. We can guess, however, that he had in mind the kind of regulation that the government has set for fuel prices. So a price freeze. It should be added that Robert Golob from

also spoke about fixing the prices of energy, natural gas and food at the same confrontation. Freedom Movements .

Hungary freezes prices, Croatia reduced VAT

Hungary has such a food price freeze, and the government has decided to freeze prices for seven basic foods for three months, from 1 February to the end of April, namely sugar, wheat flour, sunflower oil, pork thighs, chicken breast and milk with 2.8% fat. The prices of these foods have been frozen at the level in force on October 15, 2021, and apply to all stores. Traders may not limit the quantities of products they sell. A different approach was taken by Croatia, which reduced VAT on certain foodstuffs and products on 1 April. VAT on fresh meat, fish, eggs, fruit, vegetables, edible oils and fats, baby food and fertilizers and pesticides fell from 13 to five percent, and VAT on butter and margarine from 25 to five percent. VAT on sanitary pads, tampons and similar products was also reduced from 25% to 13%, and VAT on tickets for concerts and sports and cultural events was reduced from 25% to 5%. Food: Freezing would be unbearable “We can’t imagine what exactly Prime Minister Janša meant by this statement, but if the freeze on retail prices was meant, we don’t know how feasible it would be, but it would be a big problem for the food industry,” he says Stojan Hergouth , Chairman of the Board Jata Emona , which includes the production of Emon feed, table eggs Jata , poultry and Pivka products, fish processing Delamaris as well as the production of prosciutto and delicatessen meats Karst and Krpan’s delicacies. “Our price increases are the result of higher prices of input raw materials, and we have no influence on them. If we look only at cereals, they have risen in price three times since 2020, we are currently far from improving our economy, we are trying to get a normal result back. If we look at our whole group, we have a variety of inputs, from oilseeds to pork. We have calculated that the increase in raw material prices means 22 million euros, with total sales of 145 million euros, and a maximum EBITDA of 14 million euros two years ago. Without price increases, for example, we would run out of half of salaries, there would be no EBITDA… In addition, the real wave of price increases is yet to come, the price increases so far were corrections for last year. ” We do not want the maximum permitted prices to be set, as our input materials are extremely expensive and the only measure is to raise the prices of our products, the director thinks Mlekarne Celeia Vinko But . “If retail prices were frozen and raw materials became so uncontrollably expensive, who would be the one to cover the difference? I can’t imagine such a situation. But finding someone to cover that difference is another matter. ”One of the companies in the manufacturing industry, which does not want to be named, says that with such a rise in commodity prices as in recent months, a price freeze could be fatal and they are very skeptical of possible vague measures when it is unclear how in the event of a price freeze, go against companies that will have a loss.

Small pump: We sell fuel so as not to lose customers

What the March freeze on fuel prices means was immediately felt on their skin by the little pumpers. The government’s fixing of the maximum fuel price, which currently runs until April 30, has hit them hard, with some even shutting down their pumps as they don’t even get more fuel from wholesalers. Following the adoption of a decree by the government ordering fuel wholesalers to sell fuel to small dealers, supply problems have been resolved, he says Chris Boltauzer from the family business Morganti Oil, which employs 13 people. Prior to that, they were jailed for 15 days for not receiving fuel. “However, now, due to a certain retail price, we do not earn anything with fuel, the difference between the wholesale and retail price is just enough to cover logistics costs, but it runs out for employees, electricity… Good to have reserves. We sell fuel to keep customers. We work 90 percent with truckers, the problem is when you have Slovaks, Czechs, Poles, when they calculate that they will refuel at your place. And if you don’t have fuel or you have it closed, you lose customers. That’s why we work anyway. The government has mentioned something that will cover the losses of traders, but nothing is heard about it now. ” Impact of the measure on the regulation of motor fuel prices on the company’s operations Petrol before the expiry of the regulation we cannot calculate, as it depends on market prices of oil, they say in Petrol. “In the current period of limiting the retail price of fuels, we calculate the loss on an ongoing basis and inform the competent ministry. The method of calculating economic damage is not yet known. Our key direction is to obtain appropriate compensation for economic damage, including lost profits.” )In OMV Slovenia emphasize that they are currently operating in very difficult conditions both on the purchase and on the sales page.

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