According to dairies, product prices will continue to rise, and they want the government to help with energy

According to dairies, product prices will continue to rise, and they want the government to help with energy
According to dairies, product prices will continue to rise, and they want the government to help with energy

Přibyslav (Havlíčkobrodsko) – The prices of dairy products in the Czech Republic will continue to rise due to rising production costs, while their sales are decreasing this year. A number of dairies have announced further price increases since October, and the increase in prices will probably continue, said the chairman of the Czech-Moravian Dairy Association, Jiří Kopáček, at today’s press conference in Přibyslav. According to him, dairy farmers have been calling for a reduction in the VAT rate for dairy products for a long time. Here, they mainly demand concrete and quick help from the government in solving the energy crisis, for example by capping energy prices.

Due to the current economic situation and longer-term issues, farmers are preparing a protest for September 15, on the occasion of the meeting of EU agriculture ministers in Prague, said the vice president of the Agrarian Chamber of the Czech Republic, Leoš Říha. “We are on an open European market, but with different national supports,” he said. Among other things, he also criticized the so-called green agreement for Europe, or Green deal, which, according to him, has an impact on agriculture and thus also on food self-sufficiency. According to him, the details of the protest will be published after the meeting of the board of directors of the chamber, which will be on Monday next week.

Dairies usually have fixed energy prices until the end of this year. “I hope that something will finally happen, because the dairies really, as some managers in the media have already claimed, may not have energy to pay for next year,” said Kopáček.

According to Kopáček, lowering the VAT rate would help improve the ability to compete with foreign production, including consumers. “We want a reduction in the VAT rate for dairy products, 15 percent is really one of the highest (rates) in Europe,” he said. According to him, the rate should be closer to the countries around the Czech Republic, for example in Germany it is seven percent, in Poland ten percent and for selected products zero.

According to Kopáček, last year was still relatively favorable for Czech dairy farmers, which changed with the war in Ukraine. “We are all confronted with rising energy costs on a daily basis, this is probably the biggest drama that is taking place now,” said the chairman of the union. He added that dairying is an energy-intensive operation, all milk must be heat-treated and the products then cooled.

According to Kopáček, the price of milk rose by 31 percent year-on-year on average to 11.60 crowns. According to him, 70 to 80 percent is reflected in the price of dairy products. The costs of packaging materials have increased five times, sugar has become more expensive by 35 percent, fuel has become more expensive, wages are rising, Kopáček listed other impacts.

According to Říha, the price of milk has risen more significantly than ever before, but at the same time, the costs of fertilizers, feed, energy and diesel are also rising for farmers.

In the first half of this year, sales of products to dairies fell by 6.8 percent, according to the president of the union, people in stores are considering how many to buy. Some dairies are now reporting a drop in sales of ten or 12 percent, in some cases up to a fifth. Sales to dairies are increasing due to the increase in production costs, but Kopáček still predicts that this year’s economy will mostly end in the red.

“Of course we are trying to find savings here too, we are trying to produce more efficiently, but even that will not bring us the kind of savings with which we could cover the increased costs,” said director of Choceňská mlékárna Pavel Marek.

There are over 30 industrial dairies in the Czech Republic, and the number has remained more or less unchanged for the last ten years. Farm dairies operate next to them. According to Kopáček, it is not out of the question that due to the current economic situation, some small producers will decide to end their business.

In Přibyslav, there will be a Dairy Day on Saturday, the 31st. 20 dairies from Vysočina and the surrounding regions will take part in the show of dairy products.

food market milk Přibyslav

The article is in Czech

Tags: dairies product prices continue rise government energy

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