Average Customer Savings
Period July 22 to August 23
8.9%
Butchery
12.3%
Fish & Seafood
11.9%
Fruit & Vegetables
17.8%
Dry Stores & Frozen
Commodities Report
Milk:
Milk prices are pretty stable now, following a period of deflation. Major processors are holding their prices paid to farmers which should hopefully bring a bit of normality to market conditions. The price now being paid for dairy cows has also started to ease, which perhaps discourages some farmers who were thinking of selling up and cashing in.
Salmon:
Norwegian Salmon pricing remains erratic and whilst there have been small moments of lower pricing, it has climbed back up dramatically, though not quite to the peak prices seen in August 2022. Experts state that exports of salmon are significantly down versus 2022, which they mainly put down to the higher cost price. Salmon is seen as a luxury protein source, so whilst it is currently more expensive than the alternatives such as beef, poultry and tuna, many consumers are reaching to the lower priced options, meaning a downturn in demand.
In May 2023, the Norwegian Government finally confirmed the tax rate of 25% on salmon farms, which is backdated to January 2023, however the industry will not start to pay this until 2024. That said, the Norwegian Government are still unclear on how the tax will be implemented and are convening an independent Price Council to determine the market value of the traded fish. This has caused a stir in the market, with many organisation’s insisting that the tax should be based on the price the product actually brings, rather than an average. This in itself is causing a lot of unrest in the market and will likely push some of the current producers out of the market and lower the domestic capacity.
Chicken
A devastating outbreak of avian flu is wreaking havoc in South America,and has resulted in the deaths of millions of wild birds worldwide. The highly infectious H5N1 variant, which gained momentum in 2021, has now spread to every continent except Oceania and Antarctica. South America, in particular, has been hit hard, with Peru reporting a staggering 200,000 wild bird deaths from the disease.
Frozen Chips:
Prices are much higher year on year. This is partly due to the increased cost of producing potatoes, but this probably doesn’t go far enough in explaining what those type of prices mean historically. To give some comparative levels, most chip manufacturers in recent years will have paid anything from €140-€250 per tonne to their farmers for potatoes. The current market prices are around €500 per tonne. What this means is that when a chip producer negotiates a price with their farmers, the farmers are seeing the prices available of €500 per tonne on the open market but being offered much less than this on contract. There are benefits to farmers contracting of course, i.e. a guaranteed sale for their product, but it means chip producers are paying a much higher price for potatoes otherwise they simply will not get what they need. This is being passed on to the end user with frozen chips at record price levels.
Olive Oil Prices:
The olive oil industry has been reported to be “in crisis”, and the heatwave experienced over the summer in Southern Europe has caused a second bad harvest in a row with shortages in stock. After a spring heatwave affected flowering in Spain which produces about half the global olive crop, the harvest was forecast to be only 28% up on last year, which was the worst in almost a decade. Wholesale prices have doubled since the beginning of 2022. In the UK, the retail price of olive oil was up 47% year on year.
Fish & Seafood Autumn Report
White fish should be exceptional quality and abundant as the waters cool and the new Icelandic fishing quota commences. Bivalve molluscs such as oysters and mussels will be back in season, with the latter offering a low cost and sustainable local option. There should be good landings of monkfish, hake, and lemon sole. For price stability, talk to your account manager. Now is the season to consider freezing down some of our fantastic native wild caught species for the festive period. As you all know, we see a reduction in fishing effort as we near the 25th of December. If you are considering hake, monkfish, lemon soles, brill or turbot for your festive menu, and you do not wish to pay extortionate prices, get in touch with us and discuss the possibility of securing and freezing stocks now.
Fruit & Vegetables
What’s in season for September?
• Apples – Braeburn & Cox Pippins
• Pears • Plums – Victoria & Damsons
• Gooseberries
• Squashes
• Agria Potatoes (new crop)
• Broccoli
• Hispi & Savoy Cabbage
• Heritage Carrots
• Rainbow Chard
• Celeriac
• Watercress
It is now the end of the season for all apricots, nectarines and peaches, as well as English cherries.
The Spanish winter season is fast approaching with the real possibility of produce arriving by late month. So, with the much-reported scorching heat around Europe, we have seen an increase in the cost on Spanish onions and this is likely to continue through the month. Farmers have begun to harvest main crop new potatoes which give a wonderful earthy flavour. However, using these early varieties for mash is an absolute no-no this time of year.
Hotelier
in Swindon
“Having over 20 suppliers was making ordering produce so much harder and more expensive that it needed to be. Connect explained how they could help us consolidate our supplier portfolio without making any compromises. Its such a simple process”
John P.
“As a small group of 5 coffee shops, we needed to consolidate our purchasing so that all branches and were using the same suppliers at the same prices. Connect introduced us to a software platform that was perfect for what we needed”
Alex M.
“Our suppliers were ok, but we always struggled to get deliveries on the days and times that we needed. Being in central London, we can only accept deliveries at certain times very early in the morning, CP were able to find suppliers that specialised in timed food deliveries. Would recommend to anyone!”
Jane R.
Care Home Facilities Manager
in Slough
“I started purchasing my care consumables through Connect Purchasing in December last year and they were able to save me over 15%, I’m constantly checking prices of other companies and still Connect purchasing are cheaper.”
Vicky L.
“Connect talked me through the process and completed a thorough review of our products and helped me save over £1000 in the first month, this has really helped especially with wage costs going through the roof”
Graham M.
All Rights Reserved | Connect Purchasing Limited | Company Number: 08779607 | VAT Number: GB 186 8612 65