The head of a large Irish wholesaler expects food price inflation to start in the second half of this year.
im Barry, managing director of The Barry Group, based in Mallow, said the company was receiving notices from some of its suppliers regarding the price hike.
“We’re seeing evidence of vendor advice on price increases, so I think there will be food. [price] inflation, it will start in the second half of the year, ”Barry said in an interview with the Independent Irish.
Commodity prices are a factor in some cases where prices go up. Another reason is the increase in supply chain costs.
“A lot of raw materials could come from China, there is a huge increase in the cost of the supply chain, I hear the price of a container could be four or five times what it would have cost there. maybe two years the cost of labor is definitely on the rise, ”Barry said.
In some sectors – such as fruit picking – “floating staff” are needed.
“It has been tremendously impacted by Covid, so you have products that are just very, very rare, like labor, if they are scarce, the price will increase,” said Barry.
There will be a “very big increase” in the cost of some products including cooking oil and olives, but that could be in the short term, according to Barry.
His comments come as many Irish hospitality retailers and businesses grapple with staff shortages.
Supply chain and inflation issues, as well as a lack of available staff, are not confined to Ireland.
The fast food chain Nando’s was forced to temporarily close more than 40 outlets in Britain this week, about 10% of its restaurants after staff shortages hit its chicken supply chain.
Retailers, restaurants, cafes and bars have been struggling to recruit enough staff in the UK since the economy emerged blockages Covid-19 earlier this year, after the workers left the area and, in some cases, the country, as a result of Brexit.
The Road Haulage Association in the UK estimated that about 30 000 drivers stopped working in Britain since she left the single market of the European Union in January.
As a result, companies have to pay more to attract workers.
Earlier this year, beverage giant Pernod Ricard warned of a shortage of some New Zealand wine brands, after an extremely frosty spring in the country affected grape production.
Additional reports: Reuters