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Soaring wholesale electricity prices: more than 1,000% increase in 2 years!

"Without government intervention, there will be bankruptcy and massive job cuts in the French apple-pear sector”

At the end of last week, wholesale electricity prices reached new record highs and, without any intervention, this will lead to the economic death of a third of French fruit growers.

On the 26th of August, one day after the launch of the French apple and pear campaign which announced a smaller but qualitative harvest for 2022, the price of electricity on the wholesale market exceeded 1,000€/MWh [1,000.03 USD/MWh] in France. An increase of more than 1,000% in 2 years!

The apple and pear packing stations have been concerned for months about the evolution of energy prices. Nearly 1/3 of the facilities must renew their electricity purchase contract by the end of 2022. An analysis conducted by ANPP last June revealed that, for a packing unit of 20,000t per year (French average) with 300€/MWh [300.01USD/MWh], the annual bill had gone from 270,000 € [270,008.10 USD] to 1.3 million € [1.3 million USD]. Today, we are above 4 million euros [4 million USD]!!!

The annual economic outcome of these fruit stations does not exceed 300,000€/year [300,009USD/year]. Signing a contract of 4 million euros [4 million USD] is the same as declaring bankruptcy. The suppliers are not fooled either, they do not even offer them to the actors of the sector any more. Adding this load to the already fragile production is impossible and it is also difficult to pass all this increase in costs on to retailers and consumers. Feeling trapped, French apple and pear producers and their thousands of employees are now in great psychological distress, as they feel completely abandoned by the French government. 

And yet, the harvests have started and the fruits are going to storage. Contrary to many industries, the production cannot be stopped, unless all the fruits are destroyed. But feeding the French population still is the priority of the sector!

The French authorities also share this objective, so only a clear and immediate protection measure will help to pass this stage, to make sure that French apples and pears will be available at an accessible price through the entire season and to protect the sector’s 22,500 employees.

ANPP is demanding that the energy measure of the resilience plan be adapted in this way, without further delay. Part of the French food sovereignty is at stake!

For more information: 
Association Nationale Pommes Poires

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