Croatia: No price cuts despite falling oil prices
The price of basic foodstuffs and their shipment will not be cut in Croatia, in spite of falling crude oil prices.
Wednesday, 26.11.2008.
16:13
The price of basic foodstuffs and their shipment will not be cut in Croatia, in spite of falling crude oil prices. Although increases in the price of bread, milk and other foodstuffs in 2008 was blamed on soaring oil prices on the world market, producers are now claiming that oil prices are not such an important factor, warns the Independent Croatian Trade Union. Croatia: No price cuts despite falling oil prices According to daily Jutarnji List, the trade union will, in December, call for a meeting to establish whether their is any margin for reducing prices. Similar calls are expected to come from the Agriculture Ministry, and State Secretary Kresimir Kuterovac expects the fall in oil prices to be factored in by manufactures when setting their prices. However, producers' associations says that bread prices will remain at their current level, as any cuts are unfeasible, though they add that there will be no price hikes either. The daily states that fuel costs account for five percent of agricultural production costs, and only two percent in the food industry, so that the earlier increases in prices because of the rising oil prices were nothing more than a marketing ploy to compensate for manufacturers’ poor business performance.
Croatia: No price cuts despite falling oil prices
According to daily Jutarnji List, the trade union will, in December, call for a meeting to establish whether their is any margin for reducing prices.Similar calls are expected to come from the Agriculture Ministry, and State Secretary Krešimir Kuterovac expects the fall in oil prices to be factored in by manufactures when setting their prices.
However, producers' associations says that bread prices will remain at their current level, as any cuts are unfeasible, though they add that there will be no price hikes either.
The daily states that fuel costs account for five percent of agricultural production costs, and only two percent in the food industry, so that the earlier increases in prices because of the rising oil prices were nothing more than a marketing ploy to compensate for manufacturers’ poor business performance.
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