Food Council’s efforts – fruitless?

Traders are attracted to promotions, but often hands are tied. The prices are raised by suppliers, so the end user has to pay. Beef is probably the most expensive.

« About 30 percent of suppliers are asking for prices, which is due to several things: the need for beef is increasing throughout Europe and cattle diseases that also raise prices, » Maxima spokesman Titas Srimėvičius explained.

Compared to past times, coffee, fruits, dairy products and meat were most expensive in April. Even the cheapest product basket is becoming more expensive.

« About 15 % or 9.67 Euros rose a year, » said Arūnas Vizickas, CEO of Pricer.lt.

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Prices in Lithuania increase for eight consecutive months, but monthly inflation has slowed down slightly.

The pre -April is 0.2 % and the annual is 3.6 %. Donald Trump’s customs policy brought positive colors.

« Those fears about the slowdown of the global economy have greatly reduced energy prices, raw prices, and this has already been reflected in lower inflation in Lithuania, » the Swedbank chief emphasized. Economist Nerijus Mačiulis.

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Economist Alexander Izgorodine was expecting a higher inflation drop, but it does not allow the internal factors to be exhausted.

« Apparently, there is a major influence on raising salaries. As the economy remains strong enough and food consumption is growing, a significant proportion of raised salaries seem to be on shelves and has been moved on the shoulders of consumers, » said A. Izgorodin, economist at Citadele Bank.

To control the rise in prices, the Government Food Council, which gathered for a second meeting on Monday. It took three hours.

« We analyzed three products: drinking milk, grits and meat, » said Agriculture Minister Ignas Hofman.

But without results. So far, just suggestions, but those not fast. Says traders could invest more in energy.

« In this way, in the long term, the products may be cheaper, as their price in the cost consists of human resources, labor, and energy, » Hofman emphasized.

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In Europe, Lithuanians spend most of the food because there are too few players on the market.

« In principle, both the government and the business are probably more prone to the fact that it is better to sell less, but with a higher margin than investing in something, competitiveness, » said A. Vizick.

According to economists, the purpose of the food council and the actions of the authorities are difficult to reconcile. According to Izgorodin, the growth of food prices is driven by the government itself.

« You can’t invite the food council and talk to companies how to reduce food prices here when you raised the minimum wage and diesel taxation yesterday. The state has to play that party itself and decide what it wants, » the economist explained.

Although Hofman agrees, he believes in the success of the Food Council.

« Reduce product prices at least in part, at least some. But this format identifies certain problems, » the Minister of Agriculture said.

Another food council meeting should take place in two months.