February market updates and price movements by product
Rising energy and labour costs continue to create operational and financial challenges for food and drink suppliers.
Due to the shortage of natural gases, electricity contracts across Europe have increased by 300% and following the HGV driver shortage, wages for acutely affected industries (including foodservice) have increased between 15-30%.
These structural market changes have resulted in many food and drink suppliers increasing their cost to serve.
Below is an overview of price increases by product:
- Milk – Prices are rising by around 18% due to increases in production costs
- Butter – Prices have risen sharply with 40% increases in just 3 months
- Chicken – Prices continue to rise due to increase in cost of maize (used in chicken feed)
- Pork – Supply levels in UK and EU expected to decline which may result in price increases
- Frozen Fish – Cod prices are continuing to increase due to supply, demand and availability issues
- Potatoes – Prices rising due to imbalance with demand (low demand during pandemic resulted in oversupply)
- Sugar – Prices are up year-on-year with strong demand
- Chocolate – Prices are up 8.7% year-on-year
- Coffee – Sharp increases in prices continue
- Vegetable Oil – Price rises across all oils from 16% for sunflower oil, to 70% for rapeseed oil
- Fruit Juice – Prices rising due to production issues caused by adverse weather.
It’s clear that, with record levels of inflation now being experienced globally, food markets are under intense pressure.
Source – Brakes Foodservice Winter 2022 Report.