Hike in food costs last month, Foodservice Price Index reveals

foodservice, price, index
Industry
04/06/2018 - 07:00
Supply issues and challenging weather are raising costs of foodservice items such as fish, oils and fats, the latest CGA Prestige Foodservice Price Index (PFPI) reveals.

Fish prices were 12.1% higher in April than 12 months previously, due to poorer than expected cod and haddock catches and increased demand from southern Europe.

Meanwhile, the strengthening of the Norwegian Krone has pushed up salmon prices.

Oils and fats costs are up 27.9% since April 2017, caused in part by severe dry weather and the relatively high price of crude oil. 

Shaun Allen, chief executive at Prestige Purchasing, said: “We are continuing to see headline grabbing numbers from oils and 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.”

Inflation in food and beverage segments is creating challenges for the foodservice sector, according to the index, which shows that volatility in prices has eased since the start of the year. However, many items remain vulnerable to supply and demand fluctuations.

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