The efficiency and competitiveness of the European food supply chain can only be improved with realistic food prices.
According to a new report from the European Economic and Social Committee, entitled Food Prices in Europe, artificially low prices are putting the chain under huge pressure.
In conclusion, the report said: "Anticipation of low prices in the production chain ultimately restricts the investment and innovation capacity of agro-food suppliers as well as consumer choice. The Commission must take these factors and their side effects into account in the medium- and long-term and abandon its exclusive focus on the immediate benefits of low prices."
Rather than rock bottom food prices, consumers benefit the most from realistic prices which best ensure the quality, quantity and service they have come to expect.
But the report adds that a strategy designed to reduce the volatility of prices is appropriate because it would allow greater reliability and predictability in the food supply chain.
