Food imports prices will spike in the UK due to the ongoing conflict in UK, a leading food producer has said. Flour is one of the many food items that will see price increases passed onto the consumer in the coming months.
Russia and Ukraine are some of the biggest suppliers accounting for 29 per cent of the world's wheat as exports are expected to be affected by the war.
Managing director of top UK producer GR Wright & Sons David Wright appeared on BBC Breakfast on Monday morning to outline how the company's production will be impacted. The company, which has over 44 per cent of the market share for the UK's bread mixes, said it was already struggling with soaring inflation before the conflict, with costs leaping by 30 per cent between September and December, according to the BBC.
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Speaking live from Harlow, he said: "In this second phase of increase, it now costs us an extra £2,500. We have 20 loads of wheat in per day that in an extra £1 million a month we've got to find."
The reporter remarked that the wheat cost increase was on top of energy bills rising and labour shortages, asking him how he was coping with these impacts, and when these costs would be passed onto the consumer.
"That's absolutely certain," Mr Wright said. "The price is so high and so quick that if you don't put the price of flour up businesses will go out of business - it's as simple as that. Inevitably, it's going to find its way through to the consumer."
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Mr Wright highlighted how wheat is used to make a number of products besides flour. It's used to feed animals, so meat prices are set to be affected, with 30 per cent of food sold in UK supermarkets having a wheat base to it, he explained.
With the price of raw materials rising, the costs of some of the nation's favourite food items are likely to see further rises this year. Other organisations have warned that any costs passed on by food producers would hit those on the lowest incomes the hardest.
Here's a look at some of the companies that will be affected by a rise in flour prices:
Greggs
Bakery chain Greggs has warned customers its prices could go up for a second time this year as it faces surging costs. The BBC said higher prices for food, energy and staff, plus tax changes mean the company's own costs will rise by between 6 and 7 per cent, the bakery chain said.
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Known for its sausage rolls and steak bakes, they put prices up at the start of the year and it expects "further changes" to be necessary. Greggs said the cost of raw materials had gone up while energy prices are also soaring.
McDonald's
American fast-food chain McDonald's looks set to raise its prices again despite reaping record-breaking revenue levels last year. Their success has been attributed to the higher prices enforced in 2021 - and they look set to increase them again.
The American fast-food giant has also been pressured to cease operations in Russia after Western states have issued sanctions to publish them for inciting war in Ukraine.
Domino's
Reliant on wheat for the bases of their pizzas, the British franchisee of pizza chain Domino's is expecting more cost inflation this year. Despite this, the group remains positive on their 2022 outlook, according to ThisIsMoney.co.uk.
The Domino's group said: "Overall order count and customer acquisition continues to be positive, despite being up against a comparative quarter last year when there were strict lockdown restrictions in the UK."
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