Purchasing companies are highlighting concerns about festive food pressures in the lead up to the Christmas trading period.
Lynx Purchasing has warned that the high level of food inflation, which is causing significant challenges for out-of-home operators, is set to continue across the autumn and into the peak festive trading period.
Lynx said that the impact of the extreme weather across the summer, from wildfires in Europe to water shortages for UK farmers, will be felt in produce prices. Broccoli and cauliflower are already in short supply, while the combination of the heatwave and hosepipe bans made it harder to plant UK winter crops of a range of produce, including potatoes, parsnips and carrots.
Rachel Dobson, managing director of Lynx Purchasing said that as pub operators start to think about festive menus, it’s becoming clearer that the turkey market will be challenging this year in terms of both price and availability.
Avian Flu
“The impact of avian flu continues to reduce the size of poultry flocks globally. Combined with that is the effects of the summer heatwave in the UK and Europe. This has pushed up the cost of animal feed sharply, which is one of the biggest elements in the price of a Christmas turkey,” she said.
“With fewer turkeys available, and producers asking a premium price for those they do have to sell, catering suppliers are currently reluctant to set a firm price for Christmas orders. The best advice to pub operators is to speak to suppliers and place orders if possible.”
“Those who get their orders in early will be at the front of the queue when it comes to supply, although prices quoted are likely to be for guidance only at this stage, Pubs should factor in the likelihood of higher prices when they set the price of their festive menus.”
Purchasing company Prestige said that it was already seeing the festive pressure building across several key food markets, which will have a direct impact on hospitality businesses.
“For starters, turkey supplies are notably tight. Higher production costs and the continued risk of avian flu have pushed prices up earlier than we’d typically see. While pork prices have been fairly steady, the huge seasonal demand for legs and other cuts in the lead-up to December will almost certainly drive increases,” Nicole Hardwick, head of Purchasing at Prestige, predicted.
Transport bottlenecks
“We’re also seeing significant strain on dairy products like cheese and cream due to higher costs for feed and energy. And finally, imported fresh produce could be a concern, with potential transport bottlenecks across Europe causing delays just when everyone needs their orders.”
The concerns over Christmas supply come as concerns have been raised about meat smuggling in the UK by the EFRA committee, which called it the biggest food safety crisis since the horsemeat scandal.
The concerns also follow a higher-than-expected inflation in July with UK consumers expressing concerns about food price rises in August.
