Warning of huge leap in food prices

The British food industry is preparing for a massive jump in food inflation in the wake of soaring animal feed prices, a shortage of silage and poor harvests, according to a report today.

Experts predict food prices could be at least 10 per cent higher by early next year as cost rises in animal feed – the first link in the food chain – sent shockwaves through the industry, The Grocer reported.

BOCM Pauls, the UK's biggest animal feed supplier, reported a 20 per cent increase in the price of raw material feed on last year, following a 30 per cent spike in feed wheat costs, the trade magazine said.

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The company warned selling prices to dairy, poultry, beef and pig farmers would have to increase by the same amount over the next three months.

The National Farmers' Union said dry weather had added to problems for farmers by cutting yields of silage for winter feed by up to 50 per cent.

Tom Vosa, chief economist for the Clydesdale and Yorkshire Banks, told The Grocer: "We expect to see an acceleration of food prices and a return to double-digit increases by early next year if the situation doesn't change."

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