Supply issues are driving up inflation in key foodservice items including fish and oils and fats, the new edition of the CGA Prestige Foodservice Price Index reveals.
The exclusive analysis of various food and beverage categories across the sector shows that fish prices were 12.1% higher in April 2018 than 12 months previously. Inflation has been driven by poorer than expected catches of cod and haddock in the last few months, and increased demand from southern Europe. Salmon prices have meanwhile been pushed up by the strengthening of the Norwegian Krone.
The Foodservice Price Index reveals that inflation in the oils and fats category is even steeper, with prices 27.9% higher than in April 2017. 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 has been another issue.
Inflation in these and some other food and beverage segments is creating challenges for businesses across the foodservice sector. The Index shows that volatility in prices has eased since the start of the year, but many items remain vulnerable to fluctuations in supply and demand.
The CGA Prestige Foodservice Price Index features detailed analysis of ten important categories, accompanied by expert commentary on short and long-term trends around the sector. It also forecasts future movements in foodservice prices, providing businesses throughout the supply chain with the intelligence required to stay on top of challenges and opportunities.
Shaun Allen, Chief Executive at Prestige Purchasing, 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.”
Fiona Speakman, CGA Client Director – Food, said: “Our latest Foodservice Price Index spotlights the mounting inflationary pressures on important items like fish, oils, and fats. 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.”
The CGA Prestige Foodservice Price Index is jointly produced by Prestige Purchasing and CGA, using data drawn from over 50% of the foodservice market and around 7.8m transactions per month. More information on specific categories is available on a subscription basis.