Those who have pets have noticed this (and how): Pet food prices have risen in the same way as energy and the cost of some raw materials. Not just ordinary shopping, not just bills, not just petrol: Today, after the epidemic and after the war in Ukraine, raising even a small animal becomes more expensive. Which product has grown the most and why? How to deal with the situation? We asked Alberto Pagani, the Bolognese chain “L’ora degli animali”.
How long have you been in the pet products industry and how?
“We were born 26 years ago, initially with two stores (one in Bologna and one in Florence), then gradually we have grown to the current 14 sales points, including 3 franchises and 11 proprietors, 13 of which are scattered across the province of Bologna. We have a family business. And it is located in Anjola Emilia, today we have about 50 employees.We offer our customers a collection of over 10,000 products, including food and accessories, as well as free advice from dog specialists and veterinarians. In addition to the traditional one, we have also created an online shop.
Expensive prices, which we talk about in shopping carts and bills, also seem to be a concern for food and accessories for animals. Is that so? What is the reason?
“Unfortunately, I can only confirm this fact, it is not only felt, but also real: prices have risen in both food and accessories. To explain what happens, I make a distinction between the two strands. The first is our reliance on China and Concerned about the rising cost of transportation started by Covid: the cost of a container in general, which was around 3,000 euros a year ago, is now around 14-17,000 euros. The difference. With producers (European and Italian) who enjoy rising energy prices (gas and methane), but raw materials (wheat and chicken). ”
The reaction, in particular, is which product they pour?
“Think of that pot from China. Inside there’s a lot of food cans and a small number of accessories and even bigger items: let’s think about the scratching posts. Here’s a small food growth package. But it’s light, it’s compatible with big things. In concrete we see it well that in the first failure a leash was replaced without problems, now our customers replace it only when it can no longer be done without it.
Then there is the whole question of silicon, the price of which is skyrocketing. Silicon is the material from which (among other things) the crystal-like litter of sand is used for cat litter. It’s a toxic ingredient that, because of its ease of use, our advice is not to replace it with mineral and vegetable litter. ”
And pet food so tied to China? Is there a producer in Italy?
“Yes, in China and Thailand, whose transportation costs are virtually the same. These are the countries where what we call ‘natural food’ and which are actually well cared for thanks to the low labor costs of the countries in question. Italy has small producers and we are growing: among the examples.” One is the concern of a company in Kunio that is growing a lot. ”
So has Kovid influenced the price of goods imported from China and the Russia-Ukraine conflict over food produced in the West?
“Yeah Al that sounds pretty crap to me, Looks like BT aint for me either. Looks like BT aint for me either. Looks like BT aint for me either. Looks like BT aint for me either. Looks like BT aint for me either.
And you see the market effect of retailers …
“It’s getting harder for us, so we’re not able to apply all the increases. In the past we had a slight annual price increase in suppliers’ price lists and today we have more substances (2% to 7%) and more frequently. “If the price of raw materials does not go down and the margins of our traders are clearly reduced, we have no chance to defend ourselves.”
The risk that you choose for low quality products for the purpose of saving?
“One consequence could be this. The gap between price and premium products is wide. We have many customers who have not changed their spending, but single-income earners who have seen their budgets remain unchanged.”
“The advice I can give is to rely on the shopkeeper, 51% of the shopkeepers know how to give advice. The product of a small company while maintaining quality.”