Max Wallenberg, press manager at Arla whose Bregott brand has almost become a symbol of rampant food prices, cannot see that they have raised their prices too much.
— Last year was dramatic for our owners, the dairy farmers. It was first the pandemic, then the war and climate effects. Feed, fertilizer and energy became more expensive, he says.
Went under
Had Arla not raised its prices, Swedish dairy farmers would have perished, he explains.
— We are a farmers’ cooperative, all the money we earn goes back to the farmers, or back to the business as investments.
When farmers’ costs increase, they have to take it out in the form of price increases. Otherwise, Swedish dairy farmers risk having to close down, according to Max Wallenberg.
Coffee is also a commodity that has increased sharply in price recently. Anders Thorén at Löfbergs, states that his company is not among the coffee producers who raised the most. But coffee prices have increased, he notes.
— These are climate effects, the price of raw coffee on the coffee exchange has risen due to extreme weather in Brazil. Then there is the exchange rate and all the various costs that have risen, he says.
Lantmännen, which produces, among other things, flour, pasta and other grain products, does not want to comment that the food chains are pointing backwards in the chain. Lantmännen refers to the industry organization Livsmedelsföretagen.
Reasons outside the industry
However, Daniel Emilsson, press officer at Livsmedelsföretagen, cannot see that his members have raised their prices excessively.
— No, really not. Our members have had record profitability losses four quarters in a row.
He explains that the competition among producers is so tough that no one dares to raise more than necessary. Then the customers turn their backs on them, and buy low-priced goods instead.
— If the grocery store blames us, it is deeply unfortunate. We are all affected by this, the entire food chain, says Daniel Emilsson.
— It is extremely difficult for Swedish food producers.
According to him, it is almost impossible for producers not to pass on at least part of the cost increases. The fact that prices rise so much in Sweden is due to several factors, not least the weak Swedish krona, he explains.
“It’s factors outside the food industry that are behind it,” says Daniel Emilsson.