Appeal to Modern Distribution: the industry cannot bear the weight of the price increases on its own
A press release from the President of ASSICA - Industrial Association of Meats and Cured Meats, Ruggero Lenti
16, Dec 2022
“We have received appeals for liability from modern distribution companies, requests for a moratorium on list prices from representative associations, but companies in the sector are no longer able to bear the burden deriving from the sharp increases on their own of raw materials and energy”.
Thus the President of ASSICA - Industrial Association of Meats and Cured Meats, Ruggero Lenti, responds to the numerous voices that are rising from the Distribution sector with the aim of transferring, once again, the weight of the increases to the links of the upstream supply chain .
The cry of the President of ASSICA is loud and clear: "The entire sector is in deep suffering and refusing the price adjustments, already planned today, means putting at risk the stability of the entire pig production chain upstream of distribution: farms, plants slaughterhouses and salami factories. In particular, PDO products, the flagship of Made in Italy, suffer from the sharp increases in the cost of national raw materials. It is necessary to start a frank and effective dialogue along the entire supply chain because everyone needs to share and collaborate in order to face the difficult contingent situation.”
The companies in the sector, for many months, have fully absorbed the inflationary burden or have transferred it to price lists only minimally compared to the increases in costs incurred, to contain - to the limit of their possibilities - the effects on household consumption; the increases applied to the price lists of cured meats are decidedly lower than the 20% declared in the press releases from the Distribution. Indeed, inflation for cured meats is much lower than that recorded in other sectors (about 5% less). Today this weight can no longer be supported by industry alone.
“We are the ones to address a heartfelt appeal to the Distribution, aware that increases in the prices of finished products could depress consumption, especially in this complex historical phase, and to invite it to assume responsibility, to share the commitment up to now supported by the industry, which allows companies not to close and cushions the impact on consumers and families.”
ASSICA, the Industrial Association of Meats and Cured Meats, is the national trade organization which, within Confindustria, represents the pigmeat slaughtering and processing companies. Within the framework of its institutional aims, ASSICA's activity covers various areas, including the definition of a sectoral economic policy, information and assistance service to the 180 members in the economic/commercial, health, technical regulatory, legal and trade union. Competence, collaborative attitude and professional reliability are guaranteed by specialized collaborators and supported by participation in various associative organizations, both at national and community level. In fact, since its establishment in 1946, ASSICA has always stood out for its strong associative spirit as evidenced by its status as a member of Confindustria, which it has wanted to join since its inception, of Federalimentare, the Italian Federation of Food Industries, of which he is a founding member of Clitravi, the European federation that brings together the national associations of meat processing industries, which he helped to found in 1957.