Chicken and pork prices expected to drop

Chicken and pork prices are expected to drop despite food inflation rates continuing to rise above CPI rates, according to Prestige Purchasing’s annual Food Inflation Report.

Food inflation is expected to rise faster than incomes over the next five years, with 2014 inflation prediction seeing food fall from 4.4% to 3.8%.

Beef prices are to remain high and, due to corn being expected to fall by up to 20% next year, chicken breasts are due to fall by 5% to 7%.

Chief executive of Prestige Purchasing David Read said: “Unpredictable weather patterns caused by climate change, an ever-increasing global population, rising production costs, commodity futures trading and water scarcity are putting a lot of pressure on food prices around the world. And this isn’t going to stop any time soon.

“It’s imperative that the foodservice industry takes steps to ensure that these costs are not simply passed on to consumers, but find ways to safeguard a quality dining experience.”

Meanwhile, Prestige Purchasing’s market report for November showed that beef prices have gone down over October, but are expected to increase again in the run-up to Christmas.

Due to lower prices on the continent, cow beef fell by 9.1% in November and lamb prices increased 2%.