Telegraph
The price of milk, cheese, chicken, beef and pork and associated products are all expected to rise because the industry has been hit by soaring animal feed prices, a shortage of silage and poor harvests.
Food inflation is closely linked to overall inflation and some in the industry have warned it could push the economy towards a “double-dip” recession.
BOCM Pauls, Britain’s biggest animal feed supplier, has reported a 20 per cent increase in the price of raw material feed on last year
The cost of wheat used as animal feed has also jumped by 30 per cent.
The company warned that the price at which it sells feed to dairy, poultry, beef and pig farmers would have to increase by the same amount over the next three months, trade magazine The Grocer said.
It is possible that such a margin could be passed on to consumers, however, it is unlikely to be passed on in full. Instead, prices are likely to go up while producers’ and retailers’ profit margins are also squeezed.
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