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, and currently stand at $7.35 a bushel.
"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.
Livestock farmer and leading National Farmers Union (NFU) official Martin Howlett told BBC Radio Five Live that while feed prices have more than doubled, returns on cattle and sheep have fallen.
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.
Ten years ago each head of cattle could bring a return of £850 to £700, he said, adding that this now stood at £600 to £700 per animal.
Fair price
But he also said that consumers cannot simply bear the brunt of rising costs and called on supermarkets to share out the profits made from the price of meat on supermarket shelves.
We certainly see some of the retailers in the UK having bigger margins than anywhere else in Europe Peter Kendall, National Farmers Union
"From a business point of view they can't just put the prices up and hope that the consumer will take the knock," he said.
NFU president Peter Kendall also called on retailers to work with farmers to obtain a fair price for food producers.
"We certainly see some of the retailers in the UK having bigger margins than anywhere else in Europe," he said.
The NFU wanted a "partnership" between retailers and producers that meant "farmers get a fair price, and consumers don't have to pay too much for that quality product", he added.
Meanwhile, the Deloitte report also warned that the industry is not just at risk at home.
The business advisory group said 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.
Are you a farmer having to pass on a price increase? Have you been affected by the recent flooding or foot and mouth scare? Send us your comments and experiences by filling out the form below.
Are you a farmer having to pass on a price increase? Have you been affected by the recent flooding or foot and mouth scare? Send us your comments and experiences by filling out the form below.
