While the food industry requires fast solutions on energy input prices, if soaring inflation is to be brought under control, at least according to the head of a sector lobby group, the government is only to make specific decisions on potential support to business later this month.
Support measures for private consumers of electricity, natural gas and district heating have already been itemized and are being processed at the Riigikogu, ahead of the start of heating season, which traditionally runs October to March inclusive.
Appearing on the Sept. 6th edition of the ETV panel show “UV Faktor”, hosted by ETV’s Urmas Vaino, the head of the Estonian Food Industry Association (Toiduliit), Sirje Potisepp, said that while the food industry has managed well so far, recent cost increases have been at an “insane” level.
She said: “We haven’t been able to translate that into the final sales price yet. If we don’t see the energy price moderate, then negative scenarios cannot be excluded,”
“Our sector is the one most connected to people’s pockets, and we can see that they are looking for discount prices, which is a risk point for us,” she went on.
Also appearing on Tuesday’s “UV Faktor”, energy markets expert Urmas Voit said: “If we analyze how the [energy] market appears, in 2021 the price difference between the Estonian and Scandinavian markets stood at €20, while this year the difference was already €50.”
“Estonian prices are now more expensive than the Scandinavian wholesale price, so where are the risks of having to price things two or three times higher?” he went on.