FRENCH ADEPALE CALLS FOR ACTION ON EXPLOSIVE RISE IN METAL COSTS

French canned food manufacturers can no longer cope with the inflation of their raw material costs and are demanding an immediate reaction from distributors. This was stated by ADEPALE, the Association of Processed Food Companies which brings together producers of canned, frozen, dehydrated fruit and vegetables, fresh delicatessen products, dried vegetables and rice from France.

This association brings together 400 factories, mainly SMEs and ETIs, representing 46,000 employees and generating a turnover of 15 billion euros. Precisely warn of the dramatic increase in the costs of steel, tinplate and aluminum to which also adds the cost of agricultural raw materials, wood, cardboard, plastic, transport and energy. They add that these non-substitutable metals are essential for canned food manufacturers.

“The companies have demonstrated all their strengths in food preservation; it played a crucial role in feeding the French during the health crisis. Today, the exceptional economic situation endangers preservation companies for which packaging represents up to 50% of production costs,” added ADEPALE.

They also warn of the current delicate situation since this year, European steel is reaching a historic price level that is expected to experience the most significant growth of the XXI century. With inventories at their lowest point and a decline in imports, the tariff on plate and other flat products made of quality non-alloy steels rose 47.1% between December 2020 and June 21.

They also point out that tinplate, which is widely used by metal packaging manufacturers, will increase by 50-95% by 2022. The price of aluminium has also risen by 24% on the London Metal Exchange since the beginning of the year.

Christophe Bonduelle, President of FIAC also points out that: “with almost 50,000 direct and indirect jobs, our SMEs and mid-cap companies are essential links in the dynamics of the territories. They cannot absorb this unprecedented crisis on their own, their capacity to invest, innovate and take action in favour of the ecological transition is at stake”.

This is why the association is calling for new measures to be taken because “the 120 companies of the Federation of Canned Food Industries (FIAC) cannot, on their own, cushion these tensions that tend to perpetuate themselves. All the economic players, first and foremost the distributors, must assume their share of responsibility and commit themselves to guaranteeing the future of the entire sector in order to be able to always offer the French people quality ready-made products from agriculture and fishing”.