WILLEMSTAD - "There is a considerable price increase of the groceries," warns Achim Henriquez, spokesperson for the supermarket association in Curaçao, Suveco. For months, the interest group has insisted that the government must inform the population about this, since the consumer will inevitably feel this in the wallet. “But not much has been done with that yet,” said the spokesperson.
The price increase that is about to come does not only apply to Curaçao but is a worldwide trend. Last year, the supply of goods came to a standstill for some time due to the Covid outbreak in China. The container shipping companies did not operate at that time and therefore did not make any turnover. But when the process got going again, a price increase was gradually introduced to absorb the losses, but this price increase has now reached an unprecedented level. “In March, we already saw that prices were beginning to reach extremes. The prices are now downright insane," said Henriquez.
Increased demand
According to the ship charterers, there is an increased demand for goods, which causes them to increase prices in order to find a balance. But Henriquez is not so sure. Certainly not now that it has become known that the container shipping companies are expected to achieve an unprecedented profit in 2021. Even more than in the past twenty years, namely about 150 billion dollars.
In Curaçao, which has to import almost everything, everyone will feel this price increase. Before Covid, according to Henriquez, it cost around 3000 to 4000 dollars to get a non-refrigerated container to Curaçao. The same container now costs $15,000. Refrigerated containers, which also transport many supermarket products, cost 6500 to 7500 dollars pre-Covid.
$22,000
Prices have now risen to about $22,000. “Previously, the price increase was only on the route from China. But a lot of people have moved to other markets to avoid the price increase, which has resulted in the price rising there too," says Henriquez. According to consumer association Fundashon pa Konsumidó, it is inevitable that consumers will have to deal with the price increase in the coming period.
The foundation believes that consumers should become aware of his or her purchasing behavior and should see how money can be saved by making small adjustments to the shopping behavior. “Consumers often do their shopping in regular supermarkets and are often brand loyal when it comes to products. We advise consumers to become more price-conscious, to do their shopping in different supermarkets and to choose a B brand, in other words a cheaper variant, more often. This can save a lot of money,” says Rachid Pieters of Fundashon pa Konsumidó.
Cheaper variants
Henriquez also advises consumers to turn to the cheaper variants of their regular A-brand products. “There are ten other (cheaper) brands available for every product on the market, but the consumer is often very brand loyal. The point is that if the consumer were to switch to a product that comes from another market and is cheaper in production and transport, you could control the price increase, making the effect more manageable for the island.”
When asked why the supermarkets themselves do not make this switch to cheaper products, Suveco states that the supermarkets cannot make this choice for consumers because there is a chance that the alternative products will not catch on, leaving the supermarkets with a surplus. Henriquez: “The consumer will have to help us with this. If the demand for B-brands increases, the supermarket can stock more of these products, so that prices will rise less rapidly, which ultimately is a profit for the consumer."