Announced electricity and gas price increase for next year will make many food producers to adjust prices, but they won’t do it immediately. They will do it on spring. No cuts are done on winter because of lower demand. New agricultural and food price shock based on 12% electricity and 10% gas price increase can happen on spring after autumn wave which consequences are still sensible.
-It is not in dispute. The question is how big the stroke is going to be. I expect retail prices should increase for 5-6% compared with electricity and gas price increase- said Miladin Sevralic Faculty of Agriculture Professor.
He explained that it had happened that producers react after any determinant factor price increase before.
Producers, on the other side, didn’t want to forecast how painful wave of price increase is going to be, because they will make decisions separately and they think that kind of generalization is not appropriate.
-There will be no price increase in first three months because it is the period of little demands. It will be possible later. How big amount of price increase will be depends on exchange rate and intermediate goods’ price- says Vukoje Muhadinovic, Director of Meat Industry Topola.
Ha says that it is ungrateful to exceed any estimates on meat market, because lack of cattle which is always present in Serbia. That also influences meat price.
Slobodan Petrovic, Director of Imlek, says that this company hasn’t made any calculation about gas and electricity price increase’s influence on milk price but it will depend on exchange rate.
-Price increases will be conditioned with certain food dependence of gas and electricity. It can be higher or lower. We have very big costs according to this basis- says Petrovic.
Source Serbia-business
