Volatile ingredient prices provide food for thought

Food inflation currently sits at three per cent and is forecast to rise to five per cent by the end of this year. The volatile pricing landscape has been caused by challenges in the supply chain, both at a global and local level. While there is turbulence, there are things that can be done and planned for, to ensure care caterers retain control, reduce their food costs, and make their catering budget go as far as possible.

Changes in traditional weather patterns significantly affect crops and food systems. Extreme weather events, such as the droughts in California affecting citrus production, and shifts in growing seasons make it difficult to predict yields, contributing to price volatility. In the UK, we saw this variability with the 2019 cereal harvest, which was the highest this century, while the 2020 harvest was the second lowest.

Water scarcity is increasingly challenging in the South East and East of England, and poses a significant future risk to soft fruit production. Annual rainfall is well below the national average and agricultural hubs require significant water extraction for crop production alongside increased water consumption from densely populated urban areas.