Energy costs just too high to stay in business – Investment Watch

by: Ethan Huff

(Natural News) Half of the meals manufacturing crops owned and operated by Cofigeo, a big French meals conglomerate, have shut down as the corporate says its vitality prices are simply too excessive to remain in full operation.

4 of Cofigeo’s eight meals manufacturing crops are actually closed, stories point out – these amounting to 80 p.c of the corporate’s whole manufacturing capability. Which means that Cofigeo will solely be producing 20 p.c of its regular quantity of meals for the foreseeable future.

Cofigeo owns a number of different main French meals manufacturers together with William Saurin, Garbit and Raynal, and Roquelaure. (Associated: Again within the fall, French glass maker Duralex halted all operations as a result of it could actually now not afford to pay for overpriced vitality.)

With this 80 p.c scale-down in operations at Cofigeo comes a 66 p.c discount within the firm’s workforce. We’re informed that 800 of Cofigeo’s 1,200 staff are affected by this partial closure of the corporate’s manufacturing services.

An announcement was made about all this on December 6 of final yr, and it simply got here into impact on January 2. Cofigeo crops in Capdenac, Pouilly-sur-Serre, Camaret-sur-Aigues, and Lagny have all since shuttered, in response to French information outlet Le Figaro.

“This resolution goals to deal with the spectacular enhance in its vitality prices (gasoline and electrical energy essential for cooking and sterilizing cooked dishes and recipes), which might be multiplied by 10 from the start of the yr,” the corporate introduced in an announcement this week.

“Important” quantity of meals spoilage anticipated as France enters darkish winter marked by energy cuts and blackouts

In response to Cofigeo president Mathieu Thomazeau, vitality prices are skyrocketing to such a excessive diploma in France that it’s merely now not doable to do enterprise as ordinary.

“It would go in a single day from 4 million to 40 million euros,” he informed the media.

That is quick turning into an issue throughout many sectors of the French financial system as vitality costs proceed to skyrocket. Not simply producers but in addition retailers are being affected by it, with Perifem, a federation of French grocery store chains, saying on the finish of 2022 that anticipated energy cuts and blackouts this darkish winter threaten to trigger widespread meals spoilage.

Many supermarkets lack the power and even simply the time to arrange for these outages, which authorities officers initially downplayed as “unlikely” earlier than later admitting that there’ll in all probability not be sufficient energy out there to maintain the lights on in France within the coming months.

“Now we have by no means skilled this example … shops are very poorly geared up at this time with mills,” stated Perifem normal delegate Franck Charton in regards to the dire scenario his nation faces.

“We won’t throw away frozen merchandise which have for probably the most half extra thermal inertia. However, for contemporary merchandise that don’t final two hours, there’ll certainly be a major waste.”

Then there are the continuing “issues” and “points” with France’s nuclear energy era fleet, which is already midway out of operation attributable to “routine upkeep.” Extra nuclear energy crops in current days are having added points, which may lead to authorities officers having to ration what little vitality stays.

After January 15, warned Emmanuelle Wargon, France’s Vitality Regulation Fee president, France may very well be in dire straits on the first signal of a chilly snap – present climate situations are unseasonably heat, we’re informed, which has given France a short lived reprieve from what’s quickly to come back.

Manufacturing of fertilizer, an energy-intensive course of essential to develop meals, can be threatened by the continuing vitality inflation scenario. Will there be sufficient meals to go round as soon as all is claimed and finished right here?

Extra of the most recent information in regards to the present state of the worldwide financial system may be discovered at Collapse.news.

Sources for this text embrace:

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