MARKET NEWS

Inflation has fallen:

Year-on-year inflation in the foodservice sector has fallen for 12 months in a row. Inflation in

June 2024 stood at 3.6%, a rate now considered normal for the industry. The 12 consecutive

months of decline are a very welcome trend for both businesses and consumers, who have

faced several years of historically high inflation. Of the ten categories of the Foodservice

Price Index, only Vegetables remains in double-digit inflation—driven primarily by the potato

market, where poor weather conditions impacted 2023 crops and availability leading into the 2024 season. Adverse weather has also impacted other outdoor vegetables, causing delays in planting and poor availability during the seasonal crossover, and pushing up prices for carrots, onions and brassicas.

Employment law reforms:

The government announced changes would be made to employment laws in the King’s

speech. They have proposed two specific employment bills, which will now have to be

drafted and considered by both Houses of Parliament as usual, no doubt subject to

extensive public consultation processes, before being passed into law. The first of these is

the Employment Rights Bill. One noteworthy proposal which should stand out to hospitality

businesses is the banning of so-called “exploitative” zero-hours contracts.

Other priorities outlined in the government’s briefing notes of notable relevance to hospitality businesses include a commitment to remove the age thresholds in the minimum wage framework, which suggests the National Living Wage would be payable to all workers age over 18. For a sector with a relatively high proportion of younger workers, this is likely to lead to increased costs. Also of note will be provisions to make flexible working the default from day one for all workers, with employers being required to accommodate this “as far as is reasonable”.

COMMODITIES REPORT

Fruit & Vegetables:

August heralds the “sweet spot of summer” with an abundance of homegrown produce from

the UK and beautiful additions from Europe. Scottish girolles are at the best. UK new season

carrots and sweetcorn have arrived. Broccoli and cauliflower are in full flow from the UK and

quality is excellent.

What’s in season this month?

• Scottish Girolles
• Cauliflower
• Broccoli
• Sweetcorn
• Strawberries
• Turkish Figs
• Victoria & Damson Plums
• Beetroot
  

The poor UK weather has led to some problems with the yield of green beans. Excessive heat followed by too much rain has led to crop curling and touching the ground. Supply may therefore move to the Netherlands or Italy to avoid disruption.

Fish & Seafood:

Looking forward to the Autumn, the best time for our native species. It’s when we see bivalve

molluscs coming out of the spawning season, new Icelandic quota increasing fishing effort,

and the cooler waters creating an optimal environment for quality flat and round fish. With

increased availability, and improving quality and yields, there should be plenty of opportunity

to get a variety of UK fish and seafood into multiple spots on your menus.

The Barents Sea is set to face a huge cod quota cut next year. The Norwegian-Russian Joint Fishery Commission has recommended a limit of 311,587 metric tons of cod to be fished in 2025. This would see a 31% cut on top of the 20% cut implemented this year, and the 20% cut in 2023. For clarity, the quota was 885,600 metric tons in 2021. That’s a 64% cut in 3 years and is the lowest quota since 2003. The quota recommendation is driven by a

reduction in spawning stock. We recommend you consider alternative fish options when

designing new menus. Good options would be farmed cod, arctic char or spotted wolffish.