Transportation costs, climate change, extreme weather

It feels like everything is getting more and more expensive - especially food. There are many reasons for this - and it's not just down to inflation. At this point, we should not forget that we are living in an era of global networking. Added to this is the undeniable climate change and the increasingly frequent extreme weather events that result. All of this also has an impact on food prices and ultimately on consumers' wallets.

What does climate change have to do with rising food prices?

Climate change is having an impact on the food market. Extreme weather events such as torrential rain, extreme snowfall or extreme heat have a major impact on harvests; for example, the prices of coffee, olive oil and even potatoes have soared. In addition, as sad as it is, there is “greed inflation”. There are producers who not only pass on the increased costs to consumers, but also add a large profit percentage on top.

The increased frequency of natural disasters also has an impact on the transportation and logistics infrastructure, leading to bottlenecks and rising transportation costs. These factors in turn create a breeding ground for sometimes extreme price fluctuations. Rising food prices are therefore not only a direct result of climate change, we should also see them as a wake-up call to the urgent need for sustainable action.

The Smantry app may only be a small part of this, but any food that doesn't end up in the garbage can is climate protection. If each of us does a little bit every day to protect the climate, then together we are already doing a great deal.

The increased toll and food prices

The increase in the truck toll also has a not insignificant impact on food prices. From December 2023, CO₂ emission classes will be introduced as a new tariff feature for the toll. A CO₂ surcharge of 200 euros per tonne will then be due. Trucks with a technical weight of 7.5 tons are exempt. Conversely, this means higher operating costs for freight transport. For foodstuffs that have to be transported over long distances before they reach the consumer, these costs are often passed on. In other words, from production to storage to delivery. This cost pressure can therefore also have an impact on the retail price.

The additional revenue that is hoped to be generated by increasing the truck toll is to flow into the rail infrastructure. It is also intended to create incentives to switch to other drive systems.

Which foods have become more expensive? Where have there been noticeable price increases?

Inflation rose to almost 9% at the end of 2022, but has fallen continuously since that year. Inflation currently stands at 3.2%. Nevertheless, some foods have become more expensive and it does not look like prices will fall in the future. This is partly due to the rise in energy costs, but also because food companies are raking in higher profits - so-called greed inflation, which I mentioned above.

Prices have risen for butter, sunflower oil, rapeseed oil and margarine, among other things. Milk and quark have also become more expensive, as have various types of fruit and vegetables, pasta, bread and wheat flour. So it is mainly the staple foods that are affected, which makes the price trend problematic.

Meat prices have also risen, as its production is very energy-intensive. At this point, a cost forecast is more like looking into a crystal ball. It can at least be said with a probability bordering on certainty that the low prices between 2009 and 2019 will probably not be reached again.