Food producer Grampian Country Food Group reckons the escalating cost of oil and rising feed and packaging costs will lead to the price of meat.
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Higher gas and electricity charges, making the cost of heating poultry houses unsustainably expensive, combined with recent fuel price hikes impacting on the haulage of livestock and the distribution of finished products, has led to Grampian issuing a “call for action.”
Grampian has seen its energy costs alone rise by up to 47% in the past year and the cost of crude oil reaching almost $60 a barrel has meant the business can no longer absorb these costs and they will now have to be reflected in the price charged for the finished product.
“We are looking for a 6% increase across all of our products, made up of 3% fuel price increases, 2% feed increases and 1% packaging increases,” said Philip Wilkinson, managing director of Grampian’s Integrated and Added Value Chicken Business Unit said.
“Up to a third of any increase achieved from our retail customer base will be passed back to our farmer supply base,” Philip added.
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By GlobalDataNegotiations have already begun with the major retailers to increase by 6% the amount they pay for chicken, pork, beef and lamb, the company said.
