Business

Due to rising electricity costs, manufacturers ask for state aid

Faced with a rise of their value of manufacturing, a discount of their margins and their funding capability, manufacturers within the agri-food sector are nervous and have been difficult the federal government authorities for over a yr. But at this begin of the 2022 tutorial yr, their cries of alarm are particularly piercing, not to point out the danger of manufacturing disruptions.

“We are going through a scenario not seen for greater than 40 years, an actual paradigm shift for our meals provide chain, primarily based on a secure and ample world that’s disappearing”, summarized Dominique Charge, president of La Cooperation Agricole. Brings collectively about 2,200 French agricultural and agri-food cooperatives.

In query, not solely the well being disaster after which the struggle in Ukraine, which have deeply upset the stream and subsequently the costs of world commerce, but additionally world warming and its excessive climate occasions, which have affected yields in France in current months. Some sectors of agriculture. The end result: diminished availability of uncooked supplies, not simply agriculture, and speedy inflation that deeply and persistently imbalanced industrialists’ accounts.

Risk of a scarcity of sure merchandise on the cabinets

For a number of months, that is particularly so “wall of energy”, “inaccessible”, That terrifies the French meals business, for which power typically weighs closely on the cost.

“The milky big lactalis Calculates that its power invoice will double in 2023, reaching 1 billion euros. Seal Dairy Group is planning 800% enhance between 2021 and 2023″, François-Xavier Huard, president and basic supervisor of the National Federation of the Dairy Industry (Fnil), thinks that “nothing signifies stability”, fairly the other.

“Such shortages can’t be absorbed. They will shut down manufacturing models,” Dominique Charge warned, stressing that technological layoffs had already taken place in some sectors.

But when manufacturers course of perishable merchandise, any interruption in stream leads to important meals waste in addition to the danger of sure merchandise being out of inventory on the cabinets, he recollects. Especially since, for some producers, lowering references generally is a method to save power, provides the president of La Cooperation Agricole.

A sector that wants recognition as a typical curiosity

Manufacturers are subsequently searching for assist from public authorities, whose responses have to this point not been equally thought-about. They notably emphasize the necessity that, within the case of power rationing, the agri-food business be exempted from it as a sector responding to the final curiosity.

“Dairy producers can cut back their power consumption by a most of 5% with out disrupting their operations. Beyond that, we are able to not assure the continuity of milk assortment”, warns François-Xavier Huard.

They additionally need evaluations “quick” of its requirements A assist scheme for firms whose electricity payments weigh greater than 3% of turnover has been arrange by the federal government in spring. At the RMC on Monday, Ministerial Representative for SMEs, Olivia Gregoire, acknowledged that, due to its complexity, “Just 50 million euros out of three billion aid disbursed”. So he promised a simplification.

Agricultural cooperation, along with Fnil, continues to be calling “Establishing extra environment friendly power shields”, So that agri-food firms are protected “In the identical method as people” In the long run, manufacturers additionally need extra assist and easier strategies to spend money on moderation and decarbonisation of their operations.

Trade negotiations are thought-about extra acceptable

The “Paradigm Shift” Faced by your complete meals chain, nonetheless, is a necessity “Adaptation of all its actors”, Dominique Charge believes, particularly referring to mass distribution, that manufacturers have been accused for months of refusing requests to increase their costs.

“Since March, we’ve obtained half of the rise we requested the distributors for… and solely when the negotiations are profitable, which isn’t at all times the case. It solely covers the rise in agricultural uncooked supplies” , calculate François-Xavier Huard.

So manufacturers at the moment are asking “A power consumption index
“momentary modifications in commerce negotiations” apart from fixing meals costs –Today is ruled by laws that units an annual appointment with a March 1st deadline, in order that “To have the option to revise tariffs in accordance to inflation or deflation of manufacturing prices”, A couple of instances a yr. They denounced the prolonged deadline for implementation by distributors of the newly negotiated tariffs, which put manufacturers in dire money stream conditions, in addition to the misuse of their logistics penalties, of their view requiring a moratorium.

To name distributors “Responsibility” “not solely to customers, but additionally to their suppliers”La Cooperation Agricole additionally affords improvement, “Agricultural Orientation Apart from the Future Act”, one’s “Sovereignty contracts between actors, public authorities and customers within the meals chain”. He hopes this can allow adaptation within the provide chain “New Paradigm”, And make sure the remuneration of all their actors.