A senior food sector Boss of 2 Sisters has warned that prices will increase as a result of the fighting in Ukraine.
Ronald Kers, the head of the food company 2 Sisters, told the BBC that food prices could climb by up to 15% this year. He noted that the price the corporation pays for poultry from the farm has risen.
Russia and Ukraine are two of the world’s largest wheat producers. And the conflict may have an impact on shipments.
Furthermore, the price of gas has risen. As it is very useful in heating greenhouses and producing fertilizer, both of which are critical to food production.
According to some experts, the war in the region may worsen the price increases that have already been occurring during what has been dubbed as a cost-of-living crisis.
In the United Kingdom, Boss of 2 Sisters employs over 14,000 people and specializes in chicken and chilled meals.
Its CEO told the BBC‘s Today show that it has already been forced to pay 50% extra for chicken from farms.
“Fundamentally, it implies as a country we may need to start importing less and producing more ourselves,” he said if the battle continues for months.
It comes as the National Farmers Union (NFU) warned that food production might be harmed, potentially hurting food availability for years.
It requested immediate assistance for farmers in a letter to the government last week. Farmers have been absorbing costs that have risen so far, according to the report.
Rise In Price In UK
According to the Agriculture and Horticulture Development Board, UK feed wheat prices are now 39 percent higher than they were in March 2021, at £279.40 per tonne (AHDB)
Other organizations have warned that any expenses passed on by food producers will disproportionately affect people with the lowest incomes.
At his upcoming spring address on March 23, James Smith, research director at the Resolution Foundation, urged the chancellor to safeguard the poorest households from the “greatest cost of living crisis Britain has faced in centuries.”
Mr. Kers of the food company 2 Sisters also stated that the UK needed to increase domestic food production. And reduce reliance on imports.
He also said that the United Kingdom’s exit from the European Union has made production more difficult. This is due to a higher administrative load for farmers. And a lack of regulatory alignment with European food industries.
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