Foodservice sector facing inflation in fish, oils and fats, study reveals
Data explains that supply is affected in key territories.
Fish prices were 12.1% higher in April 2018 than the previous 12 months, according to a joint study by CGA and Prestige.
The groups’ Foodservice Price Index reveals that inflation has been driven by “poorer than expected” catches of cod and haddock in the last few months, which drove demand from southern Europe. Salmon prices, meanwhile, rose due the strengthening of the Norwegian krone.
Inflation in the oils and fats category is reportedly steeper, with prices 27.9% higher than in April 2017. The study says that supply has been damaged by severe dry weather in key production territories including the US Midwest and South America, with yields of both soybean and oilseed rape down. The relatively high price of crude oil at the moment is also a cited issue.
“Overall we have seen inflation ease from the highs of 2017, with reassuring signs of stability in currency exchange rates and Brexit negotiations—but the steep year on year rises in these categories is a reminder of the need to stay vigilant. Understanding the nuances of foodservice price inflation is going to be essential for any business seeking to grow in this competitive market,” CGA Client Director – Food Fiona Speakman said.
“We are continuing to see headline grabbing numbers from oils & fats, and numerous other categories are showing definite upwards trends. Many crops are feeling the effects of the poor winter and higher oil prices are starting to hit farmers. Businesses would be well advised to secure pricing now before further increases are seen, especially in dairy which looks likely to rise in the near future,” Prestige Purchasing chief executive Shaun Allen added.
