October 14, 2021
By Guy Faulconbridge and Andrew MacAskill
London (Reuters)-The UK’s 20-year binge on cheap food is nearing its end, according to Britain’s largest chicken producer, and food price inflation double-digits due to rising cost waves throughout the supply chain May reach.
The world’s fifth-largest economy, born of two crises, Brexit and COVID, faces a serious shortage of truck drivers, butchers and warehouse workers that are exacerbating tensions in the global supply chain.
“The days of being able to feed a family of four with three pounds ($ 4) of chicken are nearing the end,” said Ranjitha Amunugardan, owner of the two sister group and known as the “King of Chickens,” in a statement. Stated.
“Relatively speaking, today’s chicken can be bought cheaper than it was 20 years ago. Why is it correct that whole chicken is cheaper than a pint of beer? Now, shoppers pay more. I’m looking at the world of
Boparan, who produces about one-third of all poultry products consumed in the UK, said he does not believe the UK government can solve all problems or curb inflation. He said a contraction in labor supply would lead to wage inflation and invest in automation.
“Reducing the workforce means fewer options, core ranges, empty shelves, and wage inflation, which will not change,” he said. “For now, inflation can reach double digits, so we need to be honest about what this means for consumers.”
Prime Minister Boris Johnson has reiterated that the UK economy must eliminate its reliance on cheap imported labor and that wages must rise.
The Johnson administration has denied Brexit responsible for economic tensions, but other European economies are not facing supply chain disruptions of the same magnitude.
“We are confident that everyone will have enough goods and we are working to remove obstacles as much as possible,” Finance Minister Rishi Sunak said in Washington.
Boparan outlined the cost tsunami. Feed costs, supplements, veterinary costs, and wages increased by 15-20%. A serious shortage of truck drivers. Energy and carbon dioxide costs have risen by more than 500% since last year. 20% package up in 6 months.
Founded by Boparan in 1993, 2 Sisters sells chicken, pizza and pies. It processes 10.4 million birds a week and owns more than 700 farms.
2 Sisters Food Group CEO Ronald Kers advises people to shop normally for Christmas and says the company will do everything it can to secure a festive turkey supply. I did.
According to official consumer price data, food prices rose 0.2% annually in August, breaking the nine-month decline.
($ 1 = 0.7310 pounds)
(Report by Guy Faulconbridge, edited by Sarah Young and Elaine Hardcastle)
British Chicken King says: 20 years of cheap food binji is over
Source link British Chicken King says: 20 years of cheap food binji is over