Food costs overview for April

• Apple prices have not shown any signs of decreasing in price this month, whilst pear prices have finally started to ease off a little with the Williams variety falling in price by almost 15%; prices remain higher than average.
• Pomegranates have continued to climb in price, increasing by about 50% in the last month, and by a massive 150% since the turn of the year.
• Nectarines have dramatically fallen in price throughout March by over 30% after stable prices were seen since Christmas, but are now more in line with prices equivalent to those of last year.
• Potatoes have seen a general increase in price this month (approx. 7% on Grade 1 potatoes, with only Desiree potatoes seeing a decrease this month. Prices still increasing and remaining high as the after-effects of last year’s severe weather affected crops, and there are still a few months to go until we see any produce from next season’s harvest.
• Carrots have gone up again over the last month as the vegetable has been hit hard by waterlogged soils, and the volume of carrots required to be imported is on the increase.

Meat & PoultryAffecting the whole of the meat and poultry industry is the price of animal feed. While this is looking set to impact on some parts of the EU due to contaminated feed, the same does not appear likely for the UK. Animal feed on the continent has been contaminated by a toxic mould which has resulted in the destruction of thousands of tonnes of produce. Luckily for us, the feed has not reached UK soils, and the detrimental effects due to be felt by this will be contained on mainland Europe. While animal feed has experienced a dip in price, the costs are still much higher than normal following on from a horrendous winter, and will still impact on keeping meat and poultry prices up too.

DairyDairy prices have generally experienced increases this month. Cold and wet conditions in Europe, and dry conditions in the Southern hemisphere, have resulted in higher dairy commodity prices – with supply levels continuing to dwindle and demand remains relatively unchanged. Additionally, poor pasture quality has affected cream production and therefore prices.

• Milk prices in the UK have remained stable across March into April, with the exception of First Milk, which has increased their prices slightly. Whilst this is so, retail prices are lower than we have seen in years; this is provoking more threats of protests by farmers, particularly amidst talk of lower contract prices for milk sold for cheese too.
• The price of butter has increased by about 35% per kilogram in the past month, for both salted (80% fat) and unsalted (82% fat), showing butter is not immune to the precariousness of the dairy market.
• Cheese prices have remained relatively stable in the Cheddar market, with the exception of medium white which has fallen slightly in price this month.
• Egg prices are, in general, a volatile product, and March saw prices fall by almost 10% before returning back to their original price (as seen at the start of March). The UK market is still suffering from high supplies at a processor level, and low demand levels which is keeping domestic prices lower than currently expected – with experts predicting egg prices will continue to climb.

Fish and Seafood

• Cod prices have been very volatile across March into April, with up to a 40% variation in price. Prices mid-April are, however, on par with prices experienced at the start of March. We are finding this variation due to depleting stocks in the North Sea, as the fish continue to migrate, and fishermen face hardship in the current economic climate. This has not stopped major exporter, Norway, continuing to push the sales of the fish.
• The price of haddock has jumped up a massive 145% per kilogram this month, and can be partly accounted for this month by lower catch volumes than expected.
• Skipjack tuna has seen a small increase (around the 3% mark) this month, as has the yellowfin (but this has been closer to the 1% mark), but has remained relatively stable if normal variations are removed from the equation.
• The price of mackerel has fallen over March into April by nearly 30%, after new negotiations were reached over the fishing of Mackerel by Iceland, which has reduced the overfishing and is now more in line with quotas.

About Prestige Purchasing: independent, reliable and verified insightPrestige Purchasing is a specialist consultancy practice helping Foodservice and Hospitality businesses develop excellent supply chains.  We do this for every type and size of organisation by applying the very best professional techniques with our clients.  We are different because we earn our money only from our clients and are therefore truly independent.  There is no hidden agenda; we work only for you, 100% of the time.  And we recognise that the way in which your supply chain delivers Quality, Availability and Innovation are every bit as critical as the management of Cost. Prestige does all the leg work, employing a research team that uses over 400 sources of data and information every month to produce unbiased, independent reports.

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