The UK’s largest poultry seller has warned on Thursday that due to the ongoing supply chain issues the price of chicken is going to cost more.
The chief executive of 2 Sisters Food Group, Ronald Kers, said that “in reality food is too cheap,” and the price must rise to reflect the extra costs they are facing.
Kers told the BBC Today programme they have extra costs due to labour shortages, logistic issues, Covid and Brexit.
The company has 600 farms and 16 factories across the UK and Ker added that there has been “significant” extra costs for packaging, CO2 and the soaring energy prices which is all “bulking up the price of food.”
The founder of 2 Sisters Food Group, Ranjit Boparan warned yesterday that chicken prices will rise by 10%.
Boparan echoed what Kers said that the price of chicken is too cheap, he said, “How can it be right that a whole chicken costs less than a pint of beer?”
He warned that low prices are now “coming to an end” and “transparent, honest pricing” will now be required as a result of increasing costs.
Kers told the BBC, “If you look at the price of chicken now it is £3.50, while a decade ago it was £5, it should have gone up.
“People on farms are struggling, we don’t have enough people on our factories, farms or enough HGV drivers and as a result we’re seeing empty shelves and reduced choice.
“There’s no margin in the whole supply chain.”
Farms are now paying more for feed which has risen by 15% and commodity costs have also risen by 20%.
CO2 has risen by more than 500% in three weeks and there has been an increase in energy costs, which is has increased by more than 450% compared to the previous year.