Manufacturers warn of higher prices
Manufacturers are warning that the price of processed foods will inevitably rise the longer they have to source raw materials from overseas.
Ian Blackburn, chief executive of Perkins Foods, said the higher costs could be passed on as early as next week because the price of meat had "gone through the roof".
He said: "The major issue in the short term is securing raw materials. Generally, we have sufficient stock in hand to see us through the next four weeks and as a major importer of European pork we are continuing to receive product from our established supply partners. The longer term remains uncertain."
Hazlewood Foods said in a few cases, customers specifications were making it hard to source raw materials leading to a handful of "temporary" shortages. Otherwise it was having no difficulty in maintaining supplies. It too was concern that input prices were rising "fairly dramatically".
Over at Northern Foods the story was much the same. A spokesman said: "We are confident we can maintain supplies during the current week. By working closely with customers and suppliers and by sourcing some meat from outside the UK we are hopeful of securing sufficient raw materials to continue production and foresee no significant disruption to normal working."
But some shoppers are switching from meat. Young's Bluecrest said retailers had seen a significant uplift in sales of fish products, adding: "We are looking at ways of maximising supplies so long as the pressure on alternative proteins continues."
And Douglas Low of Dawnfresh Seafoods said it had been contacted by retailers who have told it to expect an uplift in demand.
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