Stefan Vogel

The world market is still in good demand for our meat.

So with that, we don't expect that the prices for those products on farm will rise as much as the cost these farmers are facing.

While on the supermarket side, the transport side will be part of it, the processing side of it will be part of it.

We also know that when inflation is high and we probably also see that wages will continue to rise.

So with that, also the labour cost will be a part of it.

Absolutely.

And if you look at packaging, clearly a lot of products that we're buying in our supermarkets are packaged.

And once again, a lot of the raw material is crude oil based or is chemical based.

So that is produced in those same refineries that also produce diesel and so on.

though a lot of the raw material once again comes out of the Strait of Hormuz.

So if we're looking at the Southeast Asian and Chinese market for PE plastic, so the kind of thin foil that you see a lot wrapped around food or the more sturdy plastic packaging, those prices have risen quite a bit in those origins.

And we expect that those costs will also be passed on and will be faced at some point in time by the consumers.

I would think it is worse than the shocks we had in the past.

because of the reason of the time it might drag on.

So if you look at the war in Ukraine, we have seen that grain prices went up very, very quickly, but also fell very, very quickly again because the world market feared that Russia and Ukraine might not be able to export at the time because they are in a war.

very quickly the market learned both sides are able to export, both sides are still producing good crops.

So with that actually it normalized relatively quickly the prices and the consumer faced some higher costs on that food side, but not for a prolonged period of time.

If you're looking at COVID, it was the disruptions of the supply chain,

containers coming in, ships going out, but also obviously can we produce and transport everything.

Once again, COVID took a long time, but the food and egg supply chain were considered essential and very quickly tried to stay at relatively normal pace.