Christmas warning as rain puts damper on vegetable supply

Both supermarkets said that cash-strapped shoppers face an increase in food prices if they want to buy traditional favourites.

Sainsbury’s warned that for the first time ever it may have to source Christmas crops from abroad.

It is also encouraging shoppers to buy more “ugly” vegetables so it can use the UK crop to its maximum extent.

Tesco’s chief executive Philip Clarke said the group is looking at a poor potato and onion harvest.

“We’re working hard with farmers but there is a problem. There’s a good chance we’ll have food price inflation,” he said.

He was speaking yesterday as Tesco announced its first fall in profits in nearly two decades.

Mr Clarke said the UK business is on the road to recovery as a £1bn rescue plan starts to take effect.

After six consecutive quarters of falling like-for-like sales, the UK’s biggest supermarket chain announced modest 0.1 per cent growth in the second quarter of its financial year.

Sainsbury’s revealed strong sales growth helped by its sponsorship of the Paralympic Games and a good performance from its top-end “Taste The Difference range”.

It reported a 1.9 per cent rise in like-for-like sales in the 16 weeks to September 29.

Tesco “back on track”: Business Thursday.