MADRID, 16 Feb. (EUROPA PRESS) –
Following the protests of farmers, who demand, among other demands, a fairer price for the sale of their products and a smaller difference with the price in supermarkets, the question arises of what factors influence the cost of food. and what profit margin the food chains really make.
According to data from the National Association of Large Distribution Companies (Anged), which includes companies such as El Corte Inglés, Carrefour or Alcampo, among others, large distribution companies have on average a net margin on sales of 2.5%.
Specifically, for every 100 euros invoiced, the final profit is 2.5 euros.
But then, why is there a significant difference between origin and destination prices? The evolution of prices of origin, that is, what producers receive, and destination prices (the cost of sales in stores) helps to analyze market trends, which can respond to different circumstances, such as a cost crises, a drought, a bad or good harvest, a rise or fall in demand or a shock in international markets, among others.
“In no case does this difference show the margin of the last link in the chain,” points out the large distribution employers’ association, which explains that the products on the shelves are worth more because there is an aggregation of services and value for the consumer: classification; transport; storage; stock management in stores; waste prevention; Cold chain; food safety control; packaging and presentation or information to the consumer.
Therefore, apart from what was mentioned above, some costs must be added such as rent, payroll, energy and supplies, security, cleaning, etc. Without forgetting the payment of taxes, salaries and contributions.
Who are the main clients of the primary sector? On average, around 50% of agricultural production is destined directly for export.
Secondly, the food industry appears and then the fresh food distribution channels, which include organized distribution, markets and wholesalers, traditional commerce and horeca (hotels, restaurants and cafes).
Anged has highlighted that it is “important to clearly situate the role that commercial distribution can play, as one of the main clients of the primary sector, but not the only one or the most prominent in the case of many productions.”
As the association has indicated, its associated companies, due to their size, buy mainly from cooperatives and large producers that represent the most organized part of the sector.
According to Anged, the cost crisis in the sector has been aggravated by several factors, among which three mainly stand out: increased tax pressure, new investments in environmental matters and new management costs.
Specifically, the increase in fiscal pressure is reflected in a new tax on plastic, as well as in the increase in taxes on gases for refrigerating food, the increase in social contributions, the VAT surcharges on sugary drinks and the tax on large commercial establishments in five autonomous communities.
Added to this are investments in the environment, materialized for example in the obligations of packaging reuse and return service, the reservation of 20% of the store for bulk sales or the more demanding packaging prevention objectives that the European Directive.
Finally, there would be the new management costs, declares the association.
These include the registration and registration of packaging, labeling that is not in harmony with the EU or the application of co-official languages.
