If the ‘experts’ are right, shoppers could soon face a second wave of food hikes. This could mean that the cost of a basket of everyday items is set to rocket in the near future.
Food and Drink Ireland director, Paul Kelly, says that price hikes in animal feed, energy and fertiliser along with supply chain issues will lead to an “inevitable” rise in food prices in the coming weeks and months.
Teagasc has warned that organic eggs could “vanish” from supermarket shelves as farmers consider reducing production in response to soaring feed and energy costs. “The poultry situation is on a knife-edge at the moment,” Michael McKeon of Teagasc told the National Fodder and Food Security Committee meeting last week. This comes amidst similar indications that rising production costs are forcing potato, vegetable, poultry and pig farmers out of business.
Mr Kelly also commented that the price of flour is set to rise a further 25% in the next nine to 15 months. “We’ve seen the price of flour increase by 50 to 60% and gas, the main source of energy for baking, is four or five times more expensive than a year ago.”
Many food manufacturers have increased their prices by five to 20%, and these prices hikes are starting to take effect now. In response, retailers have had no option but to put their prices up.
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