Meat prices are set to increase as farmers pass on the burden of surging costs, a report has suggested.
Meat prices are set to increase as farmers pass on the burden of surging costs, a report has suggested.
With wheat prices rising, animal feed costs have almost doubled for farmers, the study by Deloitte found.
With wheat prices rising, animal feed costs have almost doubled for farmers, the study by Deloitte found.
The group warned price rises were vital for an industry at "breaking point" after the recent foot-and-mouth scare and floods had taken their toll.
The group warned price rises were vital for an industry at "breaking point" after the recent foot-and-mouth scare and floods had taken their toll.
The warning comes days after consumers were told to prepare for rising bread prices as wheat costs hit records.
The warning comes days after consumers were told to prepare for rising bread prices as wheat costs hit records.
Bad weather in key grain growing areas such as Canada and parts of Europe has limited supplies as demand has risen, sparking fears of a grain shortfall.
Bad weather in key grain growing areas such as Canada and parts of Europe has limited supplies as demand has risen, sparking fears of a grain shortfall.
Some of the rising demand has come from the biofuel industry, which uses the grain to produce ethanol for cars.
Some of the rising demand has come from the biofuel industry, which uses the grain to produce ethanol for cars.
Widening risks
Widening risks
Wheat prices surged to a fresh record of $7.44 a bushel last week on the benchmark Chicago Board of Trade market in the US.
Wheat prices surged to a fresh record of $7.44 a bushel last week on the benchmark Chicago Board of Trade market in the US.
"Consumers hold the key to a more resilient future. UK shoppers will have to pay more for their meat," said Richard Crane food and agriculture partner at Deloitte.
"Consumers hold the key to a more resilient future. UK shoppers will have to pay more for their meat," said Richard Crane food and agriculture partner at Deloitte.
"Increased prices will allow farmers to continue to meet the increasing demand for local, high quality meat."
"Increased prices will allow farmers to continue to meet the increasing demand for local, high quality meat."
"Without it, the opportunity to enjoy home-grown quality produce and British meat could become a rarity on supermarket shelves."
"Without it, the opportunity to enjoy home-grown quality produce and British meat could become a rarity on supermarket shelves."
But the industry is not just at risk at home.
But the industry is not just at risk at home.
The business advisory group added that the recent outbreak of foot-and-mouth could prompt other countries to close their door to British exports - an industry worth £493m a year.
The business advisory group added that the recent outbreak of foot-and-mouth could prompt other countries to close their door to British exports - an industry worth £493m a year.
A drop in UK meat production, and subsequent falls in exports, would allow rival nations to ramp up their production and gain a "competitive edge" over the UK, the report said.
A drop in UK meat production, and subsequent falls in exports, would allow rival nations to ramp up their production and gain a "competitive edge" over the UK, the report said.
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