Meanwhile, here in Europe, the Law Of Unintended Consequences may soon be felt - and by that, I mean it may be a big positive for European consumers.
According to an article in Blesk, a Czech tabloid, food prices may decline by as much as 15% overall in Europe thanks to a combination of Russian sanctions and a rich harvest this year, which means that all those agriculture products originally destined for Russia will instead end up on supermarket shelves here.
Below is the English translation of the original article in full.
Czechs and Europeans are beginning to feast: Putin’s sanctions have made food cheaper by up to 15%!
Prepare your stomachs and finish eating supplies from the freezer. Czechs may soon be rushing to buy cheaper food which hasn’t been seen for quite awhile.
Prepare your stomachs and finish eating supplies from the freezer. According to estimates by the Food Chamber, prices may decline by 15% due to the Russian sanctions!
How does it work? Economic sanctions on foods including fruits, vegetables, meat, dairy products and fish, which Russian President Vladimir Putin (61) thinks will paralyze Europe, will instead bring its sweet fruit. Manufacturers of products originally destined for Russia will have to sell them, among other things, in this country. And due to an exceptionally rich harvest, prices will be considerably lower than what we’re used to.
Thank you, Poland!
The most we can expect a barrage of goods from Poland, mostly fruits and vegetables. “We estimate an average decline in food prices of ten to fifteen percent, if the Russians go through with threats, then we will start to push our agricultural surpluses to other EU countries,” said spokeswoman Dana Veპřová of the Polish Food Chamber.
Farmers obviously do not like this. Consumers however, may start rubbing their palms. According to retail chains, is a matter of a few days, though according to analysts, likely a few weeks. Either way it could well be soon but the result will be our shopping baskets and purses so much fuller!
Sanctions on fruit and vegetables from Poland were already announced on August 1 and the effects are already being felt. The largest Polish market, Broniszach, near Warsaw saw prices fall by 30 to 70 percent. The reason is a very rich harvest.
The Slovak Chamber of Commerce and Agriculture does not forecast such a drop in prices. “Our experience is that the decline in food prices in the market are not always evident on the shelves of stores,” said Blesk Slovakia spokesman Stanislav Nemec.
The Czech Republic’s Food Chamber estimates that food prices for consumers will drop by 10 to 15 percent overall. The reason is a surge of surplus food production from neighboring countries into the heart of Europe.
Local experts in Germany have not yet estimated how much prices will fall. However, economists warn that in the neighboring Netherlands, peppers and tomatoes will become cheaper by up to 30 percent and seasonal vegetables can expect a similar phenomenon.
Our Austrian neighbors are concerned. They annually export food worth 237 million euros to Russia, mainly dairy and meat products. Austrian officials predict they will be “drowned” in surplus goods at home and in Germany.
If this forecast bears out, all I can say is, “Thanks, Putin!”
Of course, Blesk is a tabloid, but I did find this also mentioned here in this brief English-language blurb from a trade site in Hungary: trademagazin.hu
Original here: blesk.cz