Coop Italia has announced plans to freeze the prices of all packaged goods for two months, effective immediately.
The initiative, which runs until 31 May, will include both private-label products as well as manufacturer's brands.
According to Coop Italia, it is a preventive measure to help members of the cooperative and consumers and protect Italian producers and breeders during the crisis.
Price Stability
Coop Italia aims to focus on suppliers as well as consumers by guaranteeing price stability and adequate remuneration for different players in the supply chain.
According to Coop Italia CEO, Maura Latini, the milk supply chain is one of the most vulnerable “due to tension following the closure of some establishments.”
She pointed out that the retailer is working closely with suppliers to guarantee that farmers supplying fresh milk get a fair remuneration.
Overproduction
Elsewhere, farmers’ cooperative Coldiretti has said that around 5.7 million litres of milk are being imported on a daily basis from foreign countries as Italy grapples with the coronavirus outbreak.
As a result, some milk processing companies are trying to reduce the fees paid to Italian farmers under the pretext of overproduction, the cooperative said.
Italian dairy producers are also witnessing a drop in milk prices as the demand in hotels and restaurants continue to plummet.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.
