Autumn has always been a troubled time for the grocery trade.

Because then industry and retailers fight for purchase prices in the annual talks.

Even if the negotiations are always very heated, the clinch between the two sides is particularly big this year.

Because while retailers insist on low prices, manufacturers are pushing for price increases.

Stefanie Diemand

Editor in business.

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Edeka boss Markus Mosa already showed that the fronts have hardened at the MLF trade conference, where, according to the Lebensmittel Zeitung, he criticized the demands for price increases as "unjustified". But things got even worse: In a presentation, Mosa showed the increases required by individual retailers: Dr. Oetker demand a premium of 8.9 percent, Henkel of 12.5 percent. The Nestlé daughters Maggi, Wagner and Purina are to demand price increases in the double-digit percentage range from Edeka. Mosa did not say whether these were average or maximum demands. From the industry it is said, however, that this was absurd. Because prices are not really talked about in public.

"Currently we are increasingly confronted with demands for price increases," said an Edeka spokesman on request.

Aldi Nord and Aldi Süd are currently in close contact with suppliers.

What many retailers are similar to: The price should remain low for the customer.

Or as a Kaufland spokesman put it: "We always offer our customers groceries and everyday items at low prices."

Prices for important raw materials have risen

The food manufacturers see it differently. The reason for the price demands are the increased raw material prices. Agricultural raw materials have been increasing in price for months, and they continued to rise in September: the FAO food price index (FFPI) reported a price increase of more than 32 percent compared to the same month last year. The FFPI consists of a weighted basket of five product groups: meat, dairy products, cereals, sugar and vegetable oils. These raw materials are considered to be particularly important for food security in the world and global trade. The FAO attributed the high prices for September mainly to the rise in prices for grain and vegetable oils.

The concerns of companies are fueled by higher freight costs, rising energy prices and climate catastrophes, delivery bottlenecks or a persistent pandemic. "It is therefore obvious on the part of the manufacturer to pass the higher costs on to the end customer," says Robert Kecskes, GfK retail expert. The situation is particularly conflictual this year. This is also due to the fact that grocers achieved particularly high sales last year due to the corona pandemic. These will not be repeated this year. This downward trend should not be reinforced by price increases.

Aldi Nord seems to want to appease customers - and perhaps also the manufacturers - now: “We cannot completely avoid global market and price developments in the long run,” a spokesman said.

But one tries to offer products at the "lowest possible price".

"It is important for us to differentiate very precisely where the price demands are actually justified by the factors mentioned above and where there are deadweight effects from the industry," the discounter continues.