Securing fair food: Greedflation, consumer trends and the future of farming in Europe

22 Aug 2024 --- While the profits of some companies in the F&B sector have increased at a pace much faster than inflation, farmers and food producers have yet to receive their fair share, says Marta Messa, secretary general of Slow Food, a global movement advocating for fairer food systems. 

She unpacks “greedflation” and its effects on food sustainability, including consumers’ food accessibility and the balance between industrial farming and small-scale agriculture and local producers, in an interview with Food Ingredients First.

Greedflation is the idea of companies using inflation to push up prices “more than they would” by economic-driven inflation. The phenomenon has polarized many, with skeptics even “debunking” it to defend profiteering businesses.

Decoding greedflation

Last year, Christine Lagarde, president of the European Central Bank, hinted at the role of corporate profits exacerbating inflation, calling for improved data and more checks and balances from competition authorities.

More recently, Kamala Harris announced a ban on “price gouging” — unreasonable price increases — by food suppliers and grocery stores, as news of a multi-billion snacking mega-merger broke just before her announcement.

“If we look at what farmers are paid and what consumers pay at the end, there is a gap.” According to Messa, this gap puts farmers at a disadvantage.

“Something is happening here that needs to be explained. That is also why many farmers took to the streets in Europe; indeed, it’s difficult to keep farming. Studies show farmers’ wages are below the national wages in many EU countries.”

Earlier this year, German farmers staged protests against government plans to abolish diesel subsidies and motor vehicle tax exemptions in agriculture. The same month, farmers in Poland, France and Spain protested against the European Green Deal and other EU policies that hurt local agriculture.

Industrial agriculture vs. smallholders

Messa maintains that while local farmers and food producers have been hung out to dry in this scenario, they can compete with industrial agriculture by “playing a different game.”

 Many farmers have been adopting sustainable agroecological practices.“Small-scale farmers and local food producers can play differently instead of joining the race to the bottom, to the lowest price, for the lowest quality and to sell the same kind of products.”

She notes that farmers and food producers can compete with the supermarket model and increase the resilience of their output amid the current climate crisis by rethinking production. Many have been doing so by adopting sustainable agroecological practices.

“Instead of heavily relying on expensive inputs, especially chemical inputs, it’s about adopting practices that have scientifically and in practice been shown to respect people and animals. Practices like water management and soil management are about nourishing the soil so that the soil can nourish healthy crops.”

The third approach is to rethink selling to retailer giants and companies.

“Big retailers or companies can demand certain volumes and have very demanding contracts. It’s rather much more about developing tight, local networks of restaurants, markets, and farmers’ markets and having a diversification of clients who understand your product’s value and are ready to pay the correct price. It’s a price that the farmer then receives directly.

Consumer shifts

Research has pointed out that agroecology can help meet the EU’s current food and climate policy targets beyond farming if combined with plant-forward diets.

This means that an increasing awareness of the environmental consequences of food choices among consumers, as seen in the rise of plant-based diets, can shape market dynamics and sustainable production.

However, Messa highlights “tension” in the consumer trend landscape, which can either support or outweigh sustainability.

“There is a push, in some cases, for higher sustainability and behavior changes documented in surveys. For instance, the Eurobarometer looks into what factors are most important to people regarding sustainability. There is an increased interest there.”

“But at the same time, there is still a push for fast food and food production with the lowest cost. In many parts of the world, the value attached to certain foods that do not belong to the local food culture is considered of the highest stance.”

Regarding the proliferation of the plant-based market, Messa highlights the need to reduce the consumption of animal products in the Global North.Food needs to be part of achieving a more sustainable Europe, says Messa.

A recent study suggested that global greenhouse gas emissions linked to food supply chains could drop by 17% if people in wealthy nations swap high-emission foods, such as red meat, with plant-based options.

“It’s important to reduce the consumption of animal products, especially in the Global North, where there is an overconsumption. In general, we should look into diverse plant-rich diets, where there are also products of animal origin, but they come from very high animal welfare practices and farms.”

EU food policy landscape

As trends and production methods evolve, key developments are on the horizon for Europe’s F&B sector as the European Commission and Parliament enter a new mandate. Messa reiterates that food needs to be “high on the political agenda.”

She cautions that even as the European Green Deal and EU Biodiversity Strategy provided clear objectives at the time of adoption, “we saw a lot of pushback once the deal was published and work started.”

“Food needs to be part of achieving a more sustainable Europe. With the upcoming Common Agricultural Policy reform and the accession of Ukraine on the horizon, there is an opportunity to push for public money to support farming practices that respect nature, people, the environment and animals. The reform is necessary because Ukraine’s large size could drain the CAP’s resources.”

Slow Food has been pushing for better labeling, consumer information, and stricter regulations for public food procurement.

“We are looking at working with farmers, food producers, citizens and decision-makers in public and private institutions because just changing farming or consumer behavior or policies will not be sufficient to change the food system,” Messa concludes.

By Anvisha Manral