Britain's largest chicken producer: no more cheap food

Britain's 20-year period of cheap food is coming to an end as food price inflation could hit double digits due to a surge in supply chain prices, the UK's largest chicken producer said on Oct. 14, REUTERS reported.

"The food is too cheap," said Ranjit Boparan, known as the "chicken king" who owns 2 Sisters Group.

“In relative terms, chicken is cheaper to buy today than it was 20 years ago. How can it be right that a whole chicken costs less than a pint of beer? You are looking at a different world from now on, where the buyer pays more,” says Boparan.

He said price increases are inevitable due to inflationary pressures across the supply chain.

In August, food prices rose 0.2% year on year, according to official consumer price data, breaking a nine-month streak of falls.

Earlier that the ceiling on energy prices in the UK should be raised, said Minister for Small Business Paul Scully. The official indicated that he insisted on keeping Ofgem's default price cap because "we clearly want to protect consumers." But he said the government is planning a "worst case scenario" in which the industry must endure higher prices.

Housing prices are also rising. According to Nationwide data, an annual increase in house prices of 10% or more has been recorded in each of the past five months. The UK's largest construction company said prices rose 10% in September from a year earlier, a slight slowdown from 11% in August.

In addition to rising prices, there is also a shortage of goods. According to the HEAD of the UK Food and Drink Federation, Ian Wright, the reason for the shortage of goods faced by British buyers is the lack of truck drivers delivering goods to retailers and restaurants. Wright stressed that "about half a million of the four million people who normally work in this sector are missing."