Inflation Update

According to industry professionals, we have seen the worst of high food inflation, and this is

being reflected in the reduced inflation levels seen across Europe. With that said, UK food

inflation remains higher than other Western economies, with Brexit Red Tape contributing to

this. The future, however, remains a little more uncertain. Poor weather conditions across

Europe have the potential to disrupt crops in a significant way and additional customs

checks on goods imported from Europe are only likely to add further complexity to the supply

of the UK market. Crude oil is high (historically), labour costs are increasing and ongoing

conflict, both Russia/Ukraine and across the Middle East, can quickly sway Government

policy and in turn, affect commodity markets.

General Election: UK Hospitality urges operators to invite candidates to visit

UK Hospitality has launched an election toolkit that allows operators to invite parliamentary

candidates to visit their venue. The trade body has created an interactive map that shows

the economic impact of hospitality in each constituency, as well as the number of venues

and people they employ. It also provides contact details for local parliamentary candidates and a template letter asking them to visit.

More than 130 MPs have said they will not stand for re-election when the UK goes to the polls on 4 July. The UKHospitality website reads: “There is expected to be a record number of new MPs in the new parliament and we want them to be the hospitality sector’s champions. This relationship starts with you and your business. We want as many political candidates to visit hospitality venues across the country

as possible, as part of the General Election campaign and hear about the vital contribution our sector plays in their constituency.”

Food Standards Agency Polish eggs warning

The Food Standards Agency is considering banning Polish eggs and chickens due to rising

Salmonella infections from imports. In a letter sent to Polish authorities, FSA chief executive

Emily Miles, and the UK’s chief vet Christine Middlemiss, wrote: "Owing to the significant

public health risks, we are considering the options available to us to protect UK consumers." Food safety expert Sterling Crew commented “Imported eggs pose a real threat to human health, with at least 2,680 human infections linked to Polish products in recent years”. To ensure food safety and quality, Sterling suggests using British Lion eggs as their code contains strict food safety controls above and beyond EU and UK legislation.

Eggs:

Wholesale egg pricing for free-range eggs has risen to last year’s historic highs, thought to

be due to the shortage of supply. The expansion of free-range flocks has stalled in recent

months, despite the 2025 deadline to remove colony eggs from shelves. The number of

laying birds is looking set to increase around July by approximately 30%, meaning that there

will be an additional 740,000 chicks compared with February last year, which should help

with pricing.

Chicken:

Fresh poultry pricing continues to remain high and pricing is up, driven by the cost of production/input. Welfare continues to remain the priority in fresh poultry, as a direct result of the bird flu outbreaks globally. More supermarkets are backing the changes to higher welfare and Lidl GB has become the latest major UK retailer to cut the maximum bird density in its own label fresh chicken supply chain, with the transition starting this summer.

Fruit Juices:

Orange and apple juice both remain high at the moment. Orange juice has been well

documented with a shortage of fruit stock and citrus greening disease has played a key role

in this. The Brazilian export market (world’s largest exporter) is controlled predominantly by

three key players, who are determining the price situation. They are favouring exports to the

US rather than Europe due to the higher price paid there, and additionally the most recent

Florida orange crop was the lowest since records began, affecting demand.

FRUIT & VEGETABLES

What’s in season this month?

• Asparagus
• Cavolo Nero
• Broad Beans & Peas
• Courgettes
• Salad leaves
• Tomatoes
• Raspberries
• Gooseberries
  

Marking the start of summer, June is the month we swap brassicas for the more colourful, delicate produce the new season has to offer. The asparagus season has had a decent run this year and the English season will come to an end by mid-month to be replaced by imports. UK Strawberries have started to arrive in good volumes at our supply partners.

UK salads are now in full flow. There is a wealth of options from UK growers such as Iceberg, Lollo, Oakleaf, Cos or Little Gem. If you are looking for colour and flavour, look no further than the

show-stopping heritage tomatoes now arriving from English growers around the country.

If you are looking for a supplier of seasonal fruit and vegetables, give your account manager

a call to discuss our fantastic supply partner options.

Potatoes:

Looking ahead to the new season crop, it looks like the planting of the ‘early’ potatoes across Northern Europe will be late due to the wet weather being felt in the key areas. This combined with the lack of carryover stock has put uncertainty into the market for the new season pricing which will start to become clearer in the next 2-3 months.