Mar 6 • 16:42 UTC 🇪🇪 Estonia ERR

The Decline in Food Prices is Due to Cheaper Raw Materials and Changes in Product Composition

Food prices are starting to decline in Estonia due to cheaper raw materials and modifications in product composition.

Food prices in Estonia, which have rapidly increased, have recently begun to decline in certain product categories. According to Kaimo Niitaru, the head of procurement at Prisma, the decrease in prices is partly due to a drop in raw material costs and overproduction. Some companies are also adjusting their product formulations to reduce prices, which can affect quality. For instance, the price of butter has dropped by over 20% compared to the start of the year. Other products, such as orange juice and chocolate, have also seen price reductions, with major Estonian manufacturer Kalev announcing price cuts that are already visible on store shelves. Additionally, some smaller categories, like olive oil and sugar, have experienced price decreases as well. The chief reasons for these price reductions include falling raw material costs, which Niitaru notes particularly for orange juice, suggesting that even greater reductions could be forthcoming. Furthermore, trends in global dairy prices are beginning to impact the Estonian market, indicating a possible shift in consumer costs for these goods as these international trends take hold.

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