Cost of fruit ‘hits high’

31/07/2018 - 07:00
The latest CGA Prestige Foodservice Price Index yesterday (30 July) revealed that the cost of fruit ‘hit high’ last month (June), while sugar reached a ‘new low.’

Affected by environmental and wider sociocultural issues, fruit price inflation ‘rose significantly’ in June - up 5.2% month-on-month - while sugar was down 8.4% against May.

Accounting the ‘adverse’ weather of late for hindering growth of fruit in many ‘key’ areas across the UK, CGA and Prestige added: “Much of Europe has suffered from similar issues, preventing imports from providing any price relief.”

Despite the fact that sugar crops have also been hit by recent adverse growing conditions in Europe, Brazil and Australia, “any impacts have been offset by bumper crops in India.”

Shaun Allen, Prestige Purchasing chief executive, commented: “While inflation in the foodservice sector has eased back for the first time since February, the recent hot weather across the UK and Europe looks set to affect a number of food products, particularly produce and crops, which could potentially lead to a longer term impact on meats due to feed shortages.

“The tariff changes in the US add further pressure and uncertainty into what is already a volatile market.”

CGA client director Fiona Speakman added: “Our new Index highlights the intense volatility in foodservice prices at the moment.

“The summer heatwaves have not been good news for the supply of many key items, and tariff wars and Brexit are starting to cast shadows over future imports.

“We will need to watch both macro and micro inflationary trends very closely in the months ahead.”

Copyright 2019 Public Sector Catering
Dewberry Redpoint Limited is a company Registered in England and Wales No : 03129594 Registered Office:
Riverbridge House, Anchor Boulevard, Crossways Business Park, Dartford, DA2 6SL VAT registered, number 305 8752 95.

Design & Development by Eton Digital