The resistance of the canning industry to the test of the price of electricity and inflation

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Inflation, rising costs due to the war in Ukraine and problems with the supply of raw materials put the the resistance of the Spanish canning industry and the profitability of basic products in the shopping basket such as canned tuna or fried tomato. Manufacturers commemorate World Canned Food Day this October 23 amid uncertainty over price trends and business strategies to maintain billing and trading of some products that Spain exports to numerous markets.

The employers of canned tomato (Agrucon) and fish (Anfaco) have confirmed, in statements to Efe, the concern about the supply of raw material and the behavior of consumers due to the increase in the price of the shopping basket. The president of Agrucon, Manuel Gonçalves, has ensured that for its industries the situation is “worse” than last yearalthough he has trusted that they will maintain their “historical resistance” demonstrated in other crises.

After a 2021 with logistical blockades, the Russian invasion underpinned the rise in energy costs, the material of cans or sunflower oil, according to the secretary general of Anfaco, Roberto Alonso. Packaging material has become 60% more expensive, but “the most critical” is the cost of gas and electricity, which has doubled costs, according to Agrucon data.

Concern about consumption

Alonso has underlined that at the moment the greatest concern is that the consumer can acquire and “keep recommending sea products” because it is “looking closely” at its food spending. The canneries have suffered a setback in consumption, after the “boom” that the confinement and stockpiling of this type of non-perishable products meant for their sales.

However, they are waiting for the last quarter and the cchristmas campaign -key moment for fishing turnover-, according to Alonso. The person in charge of Anfaco has pointed out the exit of the export, to destinations such as those of the rest of the European Union (EU) and the United States, so that the “blow” in income is lighter.

Spain is the leading European producer of canned tuna and second in the world, behind Thailand. For his part, the president of Agrucon warns that in some way the increase in costs for manufacturing cans will have to be reflected in the final price and also confirms the concern about demand.

Concern about the offer

For fish canneries, problems such as red tides and their impact on mussels add concern to supply. In the case of fried tomato manufacturers, the drought has reduced production considerably, around 30%, according to Manuel Gonçalves (Agrucon).

The descent supply of canned tomatoes is global and Spain is an exporting country, but precisely because of supply, its industries face a “delicate” situation. Tomato cultivation for industry is located above all in Andalusia, Extremadura and the Ebro Valley and water is “the main limiting element”, said Gonçalves, who has defended the socio-economic value of this sector and its impact on rural zones.

The numbers on the cans

The Spanish canned fish and shellfish sector (includes cans and other containers) produced 330,429 tons (-8% annual) for a value of 1,651 million euros (-5.9%). Regarding tomato processing, it generates a turnover of between 700 and 800 million euros, of which 80% is obtained from exports, according to Agrucon. In 2021, Spanish households reduced the purchase of fish preserves by 6.8%, with a decrease in spending of 4.7%, to 209,082.6 tons and 2,211 million euros, according to the Consumption panel of the Ministry of Agriculture, Fishing and Food.

The consumption of canned fruit fell by 13.3% and in value by 9.3%, while that of canned vegetables fell by 8.5% in value and 9.6% in volume. The panel does not detail the kilos or the exact global amount of consumption of canned vegetables, but indicates that of the processed fruits and vegetables that Spanish households buy (601,148.3 tons), a 63% correspond to preserves.

Source: lainformacion.com

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