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Bbc: Shoppers 'face Meat Price Rises'

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Oh Oh....wasnt the recent downward blip in CPI due to a fall in food prices? Damn! :unsure:

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http://news.bbc.co.uk/1/hi/business/6965674.stm

Shoppers 'face meat price rises'

Rising dairy, bread and meat costs could all be looming for consumers

Meat prices are set to increase as farmers pass on the burden of surging costs, a report has suggested.

With wheat prices rising, animal feed costs have almost doubled for farmers, the study by Deloitte found.

The group warned price rises were vital for an industry at "breaking point" after the recent foot-and-mouth scare and floods had taken their toll.

The warning comes days after consumers were told to prepare for rising bread prices as wheat costs hit records.

Bad weather in key grain growing areas such as Canada and parts of Europe has limited supplies as demand has risen, sparking fears of a grain shortfall.

Some of the rising demand has come from the biofuel industry, which uses the grain to produce ethanol for cars.

Widening risks

Wheat prices surged to a fresh record of $7.44 a bushel last week on the benchmark Chicago Board of Trade market in the US.

Wheat prices graph

"Consumers hold the key to a more resilient future. UK shoppers will have to pay more for their meat," said Richard Crane food and agriculture partner at Deloitte.

"Increased prices will allow farmers to continue to meet the increasing demand for local, high quality meat."

"Without it, the opportunity to enjoy home-grown quality produce and British meat could become a rarity on supermarket shelves."

But the industry is not just at risk at home.

The business advisory group added that the recent outbreak of foot-and-mouth could prompt other countries to close their door to British exports - an industry worth £493m a year.

A drop in UK meat production, and subsequent falls in exports, would allow rival nations to ramp up their production and gain a "competitive edge" over the UK, the report said.

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.....also worth pointing out that now production linked subsidies are gone this will also reflect in the price of meat. By my calculations subsidies accounted for about 1/3 of the cost of producing meat ie a joint of beef bought in the supermarket costing £10 would have to be priced at around £15 without any subsidies.

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As the report on the news pointed out supermarkets could take less profit and support the farmers and keep food prices sensible.

Couldn't agree more but they won't because no supermarket will do it unilaterally (losing market share , hammering their share price) . That's capitalism for you <_<

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As the report on the news pointed out supermarkets could take less profit and support the farmers and keep food prices sensible.

This will never happen in a world where the suppliers have to shoulder the cost if the supermarket decides to do an offer like BOGOF.

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As the report on the news pointed out supermarkets could take less profit and support the farmers and keep food prices sensible.

:lol::lol::lol::lol::lol:

You serious? That was suggested? Tesco only made xbillion pounds of profit last year.

Seriously though the supermarkets have to be careful - there will be no suppliers left in the UK if they do not increase the prices, and it is not going to be any cheaper importing it from abroad.

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These type of news stories are doing the rounds everywhere at the moment. Meat price rises. Same for wheat, fresh fruit, etc. In France, the no. 1 story yesterday was the price of a baguette set to rise by 5cents.

Is it just the cynic in me that thinks all of this is a co-ordinated deflection tactic by the men in power to hide the true story. ie. financial meltdown is coming and your pension and other savings won't be worth jack-sh*t in 2-3 years time?

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I wonder whether CPI will be forced up as a result of rising food prices.

NOT A CHANCE!

Interest rates will be 4% this time next year if there is a full blown stock market crash / credit crunch.

The rich elite will not allow this credit bubble to pop. They make to much money out of it.

A bit of inflation is not a bad thing, especially if your employees pay is linked to the official inflation figures. Expect real incomes to carry on falling for those that work for a living

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Guest muttley
In Germany DER SPIEGEL reports that prices for curd and cheese will rise up to 53%. :o

You should be buying that then.

Then again, Cheesefinger doesn't have the same ring as Goldfinger.

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