With prices in the UK rising at their fastest rate for 30 years, it’s fair to say that many Britons are being affected by the increases in the cost of living.
We all know about the huge hikes in fuel and enrergy prices, but there are many others – some of which will directly impact the food industry.
Oils & Fats
Between the Ukraine and Russia, they produce most of the world’s sunflower oil – naturally, the ongoing war has disrupted exports, leading to increased prices for oils and fats.
In March alone, the price of oils and fats increased by 7.2%, with supplies of sunflower oil already running short.
There is an alternative, however, British-grown rapeseed – that said, with increased demand it will mean higher prices for this, too.
Milk & Cheese
With animal feed, fuel and fertiliser prices having all increased because of the crisis in Ukraine, farmers are having to pay far more to produce milk and dairy products.
Add to this the instability of supply chains across Europe and the UK, it has meant further price increases.
Milk prices continue to surge, driving the price of products like cheese and butter to levels we have never seen before. Furthermore, the price of all egg products has been re-evaluated due to severe shortages caused by the avian flu disaster as well as shortages of grain due to the ongoing war in Ukraine.
Wheat & Bread
In March, the wholesale cost of wheat rose by almost 50% in two weeks. This was in response to inflation and supply pressures linked to the war in Ukraine – Ukraine and Russia together supply nearly a third of the world’s wheat exports!
In March, the price of bread increased by 2.3% and is now 5.5% more expensive than it was a year ago, according to the Office for National Statistics.
As always, we’ll continue to do what we can to absorb some of these increases, but we will have to impose price increases accordingly on occasions.