Compared with other European Union member states, food prices have increased the most rapidly in Latvia, according to collected data that indicates that multiple essential food products in Latvia are more expensive than they are elsewhere, as noted by the Union of Greens and Farmers (ZZS).
ZZS Saeima faction leader Viktors Valainis stresses that any person entering a store can plainly see that everyday consumer products are becoming more and more expensive.
Valainis notes that data compiled by Eurostat shows that
in May 2023 inflation for food products in Latvia was 17.4%, whereas the average in the EU was 15.1%.
In Belgium it was 16.4%, in Germany it was 15.4%, in Holland it was 15%, In France it was 15%, in Finland it was 12%, and in Denmark food product inflation was 10.7%.
“If we look at certain product groups, there was a dramatic price surge for bread in May – by 33.5%. Bread priced in the EU increased by 14% in the same month. Additionally, while the price of butter in Latvia grew by 10%, the average increase in the EU was 1.5%,” notes ZZS representative.
According to Valainis, when looking at the accessibility of food, it is especially important to keep in mind residents’ income level together with food product prices.
According to statistical data, the average pay in Latvia before taxes is slightly above EUR 1 400. In Germany the minimal pay exceeds EUR 1 900 and the average is EUR 4 105.
“This means our residents are forced to divert more and more of their income towards food products, pushing other needs to the side,” Valainis concluded.
Data for certain product groups in European countries indicates that despite the relatively low income level in Latvia, food costs almost as much as it does in wealthier countries.
Comparing prices with other EU member states, ZZS notes that, for example, 1 kg of flour in Latvia costs around EUR 1.95, whereas in Lithuania it costs EUR 1.59, in France it costs EUR 1.29, in Germany it costs EUR 1.75, in Spain it costs EUR 1.56, in Poland it costs EUR 0.90, and in Sweden it costs EUR 1.53.
1 l of 2% milk in Latvia costs an average of EUR 1.39. In France 1 l of 2% milk costs EUR 1.26. Eggs are also more expensive in Latvia when compared with Germany and Poland.
ZZS notes that ten eggs on average cost EUR 3.1. The same amount in Germany costs EUR 2.5 and in Poland it costs EUR 2.7.
Prices of other products are even higher. For example, 1 kg of meat in other EU countries costs less than it does in Latvia. “While people in our country costs an average of EUR 5, in Czechia they pay EUR 3.79, in Poland – EUR 4.28, and in Spain – EUR 4.5,” says Valainis, adding that “now is the time to act in order to limit food prices and prevent Latvian residents from ending up in poverty”.
ZZS leader also notes that other countries have already reduced taxes for food products, have imposed price ceilings and have adopted controlling mechanisms to make sure traders are unable to apply unjustifiably high markup.
“Our minister of agriculture only continues organising discussions, but we have yet to see any tangible results,” says Valainis.
ZZS expects active and focused work from the minister to assist with Latvian producers’ goods being put on shelves of supermarkets. The party also believes residents should have access to locally made products without excessive markup to make it competitive with foreign products of the same type.
“Everyone would benefit from it: consumers, producers and Latvia’s national economy in general,” says the head of ZZS Saeima faction.
BNN previously reported that the board of ZZS has plans to request dismissal for Latvia’s Minister of Agriculture Didžis Šmits.
Also read: Union of Greens and Farmers will request Latvian agriculture minister’s dismissal