“Covid was most affected by the prices of products from overseas, such as oranges, lemons or ginger, as well as the prices of seasonal vegetables from Italy,” says Makro wholesale spokesman Romana Nýdrle.
“The rise in prices is clearly due to changes in international transport caused by the coronary crisis and the shortage of workers in the food industry,” adds František Brož on Košík.cz, adding that these factors may be active in Europe for several more months.
At first he did not have lemons in the spring in Spain and other countries who harvested due to the onset of coronavirus. Then the citrus was difficult to transport to the place of consumption, because they are usually transported in the cargo spaces of aircraft. However, the number of flights decreased significantly and places in the transport area became more expensive.
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Traders also point out that the koruna’s exchange rate was eight percent weaker in the prices of imported production. According to statistics, August inflation was 3.3 percent. Fruit rose the most year-on-year, by an average of twenty percent, and the prices of sausages are also higher, by eight percent, meat or sugar. According to economists, this year will see the highest price growth since 2008.
“Year-on-year inflation may reach 3.5 percent in September, after which it will fall, but it will probably remain above three percent by the end of the year,” says Pavel Sobíšek, an economist at UniCredit Bank. According to him, there should be a decline next year, because few traders will afford to rise in price due to the stagnant or even really declining purchasing power of households.
Who plucks Czech apples
Growers in the country also solve similar problems as abroad. It is very difficult to find foreign workers, and in addition, testing for covid is more expensive, as the head of Bohemia Apple, Štěpán Chára, stated in an interview for the E15 daily. According to his calculations, the tests alone cost 300 million crowns.
Another reason for rising prices, which will be reflected for a longer period of time, is the lower yield of various fruits. “This year was affected by spring frosts, which damaged many fruit species. For example, apricots have been harvested in Europe this year at least since 2003. The June rains again damaged the harvest of cherries and partly also strawberries or sour cherries, “describes Milan Ludvík from the Union of Fruit Growers.
At the same time, the demand for fruit as a source of vitamins rose in the spring. “People bought fruit regardless of higher prices, as they were advised from many quarters to strengthen their immunity by eating fresh fruits and vegetables. And if the customer buys, the trader logically increases prices, “says Ludvík.
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The view from the other side is a little different. “During the first wave of coronavirus, prices were high due to the small workforce of foreign producers and also due to the limited possibility of transport. This period was smoothly followed by domestic production, when Czech farmers had a similar problem with the workforce and also did not need to reduce prices, because the customer used to pay more, “says Zdeněk Kuhn, spokesman for the online food retailer Rohlík.cz. The situation began to change only in July and August, when prices fell slightly.
In the future, however, the fruit will probably become more expensive again. “Specifically with apples, we already have information from growers that for the following period there will be very little production in the quality that can be offered in the Czech Republic in the retail network,” says Daniel Mareš, a fruit and vegetable buyer for Košík.cz. According to him, an increase in prices in the winter citrus season can also be expected.
Only a third of vegetables are Czech
For vegetables, the situation is slightly better than for fruit, but prices are also rising, mainly due to epidemiological measures in companies and rising personnel costs. “The situation is to blame for the fact that unskilled labor, which does not have the necessary endurance or skills, had to take the place of already established skilled workers who did not enter the European Union due to covid restrictions,” describes Alice Kouřilová from the Vegetable Union of Bohemia and Moravia.
Even for vegetables, prices are determined abroad. Czech growers cover on average one third of domestic vegetable consumption. In the season, ie from June to November, however, this share climbs significantly up.
Seasonal developments are the reason why, for example, chestnut vegetables and onions became more expensive in the spring. “Spain and Italy, which are the main suppliers at the time, did not have the forces to work in the fields. Borders were closed, the first wave of the epidemic was on the rise, and people from third countries who do this work in a normal situation could not come, “says Kouřilová.
However, thanks to the Czech harvest, summer brought a reduction compared to spring. “In the case of tomatoes, prices are lower each year in the summer because it is the cheapest to grow tomatoes. In the winter, when it is necessary to heat and light in the greenhouse, the costs of cultivation are significantly higher, and therefore winter prices are higher, “says Jiří Stodůlka, CEO of Farm Bezdínek, who expects tomato prices at about the same level as last year.
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On the contrary, potatoes are cheaper compared to last year, according to the statistical office, by three crowns per kilogram. “It is necessary to pay attention to quality. There are enough potatoes, but the unfavorable weather has caused the quality to be not as stable as in other years, “points out Zdeněk Kuhn for Rohlík.
What the customer pays the most for
- Apples – In August, according to statistics, it cost an average of 44 crowns per kilogram, a year ago 31 crowns. This was caused by last year’s low harvest, so this summer the chains had difficulty finding apples from the Czech Republic and surrounding countries and had to import from New Zealand or Chile. With the new harvest, prices are now likely to fall slightly. The question of how long, the harvest is slightly lower, but the quality is worse. There is also a lack of labor for the harvest and they are also more expensive.
- Pork – A kilogram of pork roast costs 146 crowns on average, a year ago it was 130 crowns. Sausages are about ten percent more expensive. It was caused by the swine flu in China, which screwed up prices last year. European producers filled the shortfall in local production and meat was scarce. The situation has stabilized in recent months. However, higher domestic hygiene costs are also reflected in the prices in the Czech Republic.
- Beer – In the last year, the price of half a liter of light draft beer has risen by an average of less than two crowns to 13.10 crowns, according to statistics. Since October, the largest company in the Plzeňský Prazdroj field has been making some of its bottled beers more expensive. His step is usually followed by smaller players.
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