Dry summer
Food manufactures have higher costs for raw materials after the dry summer. Credit: Toby Talbot/AP

Food manufacturers call for supermarket prices to rise after record dry summer

2:30 min

Shoppers should pay more for their food over the next year if Sweden's food manufacturers are going to ride out the devastating effects of a long, dry summer, says the organisation representing the industry.

The summer drought has severely depleted Sweden's food crops which has in turn led to a surge in costs for food manufacturers.

Now the organisation representing the food manufacturing industry, Livsmedelsföretagen, is calling on Sweden's major supermarket chains to increase food prices for consumers, otherwise the consequences could be dire. 

"Profit margins are very tight within the food processing industry and the problem now is that we are facing higher costs for raw materials, which in turn affects our chances to invest in food production. So that's why we are urging all actors in the food chain to accept that food prices will go up," says Carl Eckerdal, chief economist at the Swedish Food Federation, to Radio Sweden.

He says food manufacturers managed to survive a similar crisis in 2008 by making efficiency savings, but he says there is no wiggle room this time. He expects prices for food made in Sweden to rise within three months.  

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