The relative affordability of chicken has helped make it the country’s favorite meat, but one of the UK’s largest food retailers has warned it could soon be as expensive as beef as production costs rise.
Steve Merrels, CEO of Co-op, said the cost of feed has become a huge challenge for the poultry industry. “Chicken can be as expensive as beef. Chicken, which was incredibly cheap and great value for money, is growing faster than any other protein. ”
Chicken is the most popular meat in the country, with consumption levels far exceeding beef, lamb or pork. At a time when household food bills are already rising, more expensive chicken is likely to have a disproportionate impact on lower-income families.
Consumers were warned late last year that prices must rise to reflect the real cost of producing food from 2 Sisters, the UK’s largest poultry supplier.
“How can it be right for a whole chicken to cost less than a pint of beer?” Said Ranjit Singh Boparan, owner of Bernard Matthews and 2 Sisters Food Group at the time.
Boparan, whose facilities in the UK and Europe handle more than 10 million birds a week, said labor shortages and rising commodity prices mean less choice and higher prices.
This inflationary picture is exacerbated by the new price shock caused by the war between Russia and Ukraine. In a March 2 update, the Sisters said its entry costs – of which feed is the largest component – have increased. “Farm prices have already risen by almost 50% in one year,” it said.
Ingredients that go into chicken feed include soy, sunflower meal (a by-product of sunflower oil) and wheat, all of which have risen in price. Normally, Ukraine and Russia are major producers of sunflower oil and wheat.
Fast food chains such as Nando’s and KFC are among the big names on the street that have risen in price in recent months. However, a whole bird can still be bought for less than £ 3 at the supermarket. Currently, Tesco, the largest in the United Kingdom, offers a price corresponding to Aldi for a whole chicken of £ 2.89 – or £ 2.07 per kg. Tesco’s cheapest minced beef is £ 3.78 per kg.
Data from the Office for National Statistics show that the average retail price of chicken meat has increased by 31 pence, or almost 12%, to £ 2.98 per kg in the last 12 months. For minced beef, the price per kg is £ 6.78, after such a rise. The price per kilogram for both meats is closer to the highest products, such as organic ranges.
Speaking at a forum of directors of retail and e-commerce, Merles said customers could switch to other meats or vegan alternatives if the price of chicken continues to rise.
In remarks made for the first time by the Sunday Times, he said: “Customers will need to understand what they can afford. They will buy chicken, make it roast on Sunday, but then they will use the entrails and whatever to make soup. Customers will find creative ways to make food last longer. ”
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