Butter
The price of butter has risen sharply. This all has to do with world trade and the demand for milk fat. Raw milk contains protein and fat, among other things. “The demand for milk fat has increased faster than that for protein,” says Jan Willem van den Berg, agriculture specialist at ING. There is an explanation for this. In 2021 we had a rainy summer, in 2022 dry. “As a result, the roughage quality for the cows was worse. Not only did they produce less milk, but the fat content in the milk was also lower.”
If demand stays the same and supply decreases, a price explosion occurs. Not only that. In New Zealand and Australia, milk production is highly seasonal. “A less good growing season has a direct impact on global production and therefore on the price.”
Let’s line up the numbers. In 2020, the wholesale price was 337 euros per 100 kilos of butter. This year the price was 722 euros for the same 100 kilos. Other than doubling. Also, there is another explanation for the high price. “Due to rising energy, grain and fertilizer prices, the cost price of a liter of milk has also risen sharply, as can be seen by consumers in the shop.”
Coffee
“The harvests have been hopeless this year, especially in Brazil,” says retail expert Paul Moers. “The country was facing massive droughts or it was too wet or too cold.” Coffee plantations around the world are experiencing one crop failure after another.
“Not only did Brazil do badly, Indonesia also had a bad harvest and drought is advancing in West Africa. Coffee plantations are feeling the effects of climate change. The price of coffee will therefore increase rather than decrease in the foreseeable future.”
Spaghetti
The huge increase in spaghetti and other types of pasta has everything to do with grain prices. Ukraine and Russia are two of the world’s largest grain exporters. The high prices are partly due to the fact that tons of grain are stored in Ukraine because exporting is now difficult due to the war.
Food for animals
Dog and cat owners have certainly noticed: a can of dog food has become much more expensive. Corona is one explanation for this. “The animal feed consists of leftover meat waste. Due to the closure of the catering sector during the lockdown, there has been significantly less demand for meat and therefore there is less leftover meat product,” he explains Dirk Mulder, retail expert at ING.
At the same time, the demand has actually increased during this period. “During the coronavirus period, there has been an increase in the number of pets being purchased. Growing demand and pressured supply are driving prices up.”
Product price increases
How much did you pay for a packet of butter last year and what now? We compared the prices of various products with October last year and now. A small selection:
- Coffee: L’OR Espresso capsule ristretto, 20 cups cost €5.85 at Albert Heijn last year, now €7.99.
- Spaghetti: G’woon Coop-style wholemeal spaghetti cost €0.50 last year, now €1.19.
- Steak: Last year you paid €6.63 for Extraordinary black angus steak about 250 grams from Hoogvliet, now €8.25.
- Butter: AH organic unsalted butter was €2.49 last year, now €3.29.
- Olive oil: Aldi’s extra virgin olive oil was €4.99 last year, now €6.49
- Egg: For organic eggs AH 10 pieces last year you paid €3.99, now €4.49.
- Cat’s food: For Jumbo Chunks in Sauce with Beef & Liver 405g you paid €0.37 last year, now €0.69.
- Canned peas: PLUS Garden Peas were €0.98 last year, now €1.29.
Olive oil
The fact that olive oil has become more expensive is a result of poor harvests. There were fewer olives and the fruit was smaller. “This has to do with major droughts or heavy rains,” Mulder says. In Pakistan, there is more focus on olive cultivation, but the country has received an exceptional amount of rainfall. “The areas where the olives grow have had heavy summers. This affects the yield of the olives and their production.”
Another factor is that there was a rush on sunflower oil earlier this year. Due to the stagnation of exports from Ukraine, that product has become scarce. People started looking for alternatives. “Demand for olive oil has increased, but shortages have prevented that demand from being met, so the price has increased.”
Meat
Beef rose in price fastest last year, at about 16 percent. Here, too, is a global market where lower supply leads to higher prices. “The cost price has also risen significantly,” says agricultural specialist Jan Willem van den Berg. “Furthermore, in the Netherlands we have decided that only Beter Leven chicken will be sold in supermarkets. The cost price is higher, so this leads to a higher price in the shop.”
“Import prices for animal feed are also incredibly high,” adds retail specialist Paul Moers. “Look at the freight rates, they have increased enormously. It all started during the coronavirus due to the lack of containers. Where a container cost 4000 euros before, the prices have increased up to 14,000 euros. We are now seeing a slump, which could impact prices.”
Canned peas
Producers of canned vegetables suffer from energy costs. Canning vegetables requires heating, which requires a lot of energy. The vegetable producer HAK therefore places in January production halted for six weeks due to high energy prices. According to HAK, it is not possible to produce all winter with current energy tariffs.
“Vegetable producers are not only suffering from high energy prices,” says Pascal Hopman of the Federation of the Dutch Food Industry (FNLI). A large part of the cost increase also affects packaging materials. “Prices of metals such as tin have also risen due to the turmoil surrounding the conflict in Ukraine.”
For a trolley with things that cost 100 euros last year, you now pay 111 euros. It has been almost fifty years since we have seen such price increases in the supermarket. The video below explains why:
