Middle East conflict reignites price battle

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L’association Pact’Alim, spokesperson for 3,000 French food SMEs and ETIs, calls for rapid pass-on of cost increases in the food sector.

The 11th from, the food industry met under the auspices of the government to discuss the consequences, for the sector, of the situation in the Middle East. Pact’Alim recalled “the need for a rapid and concrete repercussion of the cost increases borne by food companies since the outbreak of the conflict”. The association “alerts again about this emergency situation, took place at the very moment when the 2026 trade negotiations were being completed and which therefore could not be correctly integrated into the recently concluded agreements.. Food companies are indeed experiencing a sudden increase in their costs today., as well as supply disruptions linked in particular to tensions on maritime routes and the situation in the Strait of Hormuz. According to a survey carried out at the beginning of May among Pact’Alim members, 92% of responding companies are already facing cost increases. The increase in transport concerns the greatest number of companies, with 84% of respondents impacted and an average increase of 11% for road transport and 13% for maritime transport. Average increases of 22% for gas and 19% for plastic.

Jerome Foucault, president, and Karine Kaci, CEO of PACT’ALIM.

The shock of additional costs

In this context, Pact’Alim recalled that “commercial contracts concluded at the start of the year as well as contracts for the manufacture of private label products (MDD) cannot remain disconnected from the economic reality now supported by French food SMEs and ETIs”. Conclusion : “For companies that request it, These additional costs must be fairly and effectively passed on as quickly as possible to SMEs and mid-sized companies transforming French sectors. »

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