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Conflict in the Middle East has significant impact on packaging

Pact'Alim calls for cost increases to be transmitted fairly

Against the backdrop of the conflict in the Middle East, Pact'Alim is calling for the additional costs borne by companies to be passed on fairly, and welcomes the openness of Minister Serge Papin to the issue of reopening trade talks.

An "exceptional" situation that could not be incorporated into the agreements
For Pact'Alim, spokesperson for the 3,000 SMEs and ETIs in the food sector, this position is an important signal. It reflects the need to take account of an exceptional situation, which arose at the very moment when the 2026 trade negotiations were coming to an end, and which therefore could not be included in the recently reached agreements.

Since the outbreak of the conflict, companies have been faced with a sharp rise in their costs, as well as supply disruptions linked in particular to the situation in the Strait of Hormuz. According to INSEE data, the import price index of industrial products jumped by 7.9% in March, compared with the previous month.

15-30% increases for plastic packaging
For French food SMEs and SMBs, the impact has been particularly marked on packaging, which normally accounts for between 10 and 20% of their costs. However, plastic packaging prices have risen by 15% to more than 30%, depending on the polymers and resins used. Metal packaging went up 10 to 20%, and other packaging materials are also likely to see increases. Added to these trends are the additional costs of maritime and road freight, creating additional pressure on fragile economic balances.

For Jérôme Foucault, president of Pact'Alim, "these additional costs must be passed on fairly and effectively as quickly as possible. What is at stake is maintaining our production capacity, the long-term future of our businesses, our agricultural and fishery sectors, and ultimately our food sovereignty."

Supermarkets "must take this new economic situation into account"
The economic impact of the current situation is reminiscent of, but more intense than during the crisis caused by the war in Ukraine. This situation justifies a quick, concrete, and responsible answer from all players in the food chain. The trade agreements signed in recent weeks, as well as the contracts for private-label products, cannot remain disconnected from the reality of the additional costs now being borne by businesses.

Pact'Alim is calling on supermarkets to play their full part in addressing this new economic situation in the interest of our food sovereignty, and to pay particular attention to any follow-up action.

For more information:
Pact'Alim
pactalim.fr

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