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Tony's Talk - In the immortal words of Victor Meldrew
In the immortal words of Victor Meldrew - “I don’t believe it...!” However, sadly it is a fact that our Trade is being hit by a tsunami of price rises. We are besieged with shortages, supply delays and price increases on key ingredients and packaging. The difficulties of obtaining shipping containers has been widely publicised but the cost increases less so. A 40ft. container from the Far East cost $2,000 in March 2020 to ship into the UK but now costs up to $14,0000! Sailing times have also been extended by up to 4 weeks causing further delays.
In the immortal words of Victor Meldrew - “I don’t believe it...!”
However, sadly it is a fact that our Trade is being hit by a tsunami of price rises.
We are besieged with shortages, supply delays and price increases on key ingredients and packaging. The difficulties of obtaining shipping containers has been widely publicised but the cost increases less so. A 40ft. container from the Far East cost $2,000 in March 2020 to ship into the UK but now costs up to $14,0000! Sailing times have also been extended by up to 4 weeks causing further delays.
Due to ‘global shortages of raw material’ late on Friday (5/3/21) we received notification that all polystyrene trays and boxes would increase in price by 25% from the following Monday (8/3/21) and that this would affect orders already placed! This is before an outright ban on the use of polystyrene products in Wales and Scotland this October (with England and Northern Ireland due to follow suit in 2022). It is more than likely that further increases will be implemented with immediate effect as demand continues to outstrip supply. Fortunately, there are more ecologically sound alternatives available.
However, although corrugated trays and boxes are produced in the UK, paper worldwide is under great pressure and costs are increasing. Similarly, ‘bagasse’ bio-boxes and trays that are produced in China from sugar cane waste are also subject to the increases in freight costs and ever-increasing demand.
Well aware of the forthcoming polystyrene ban we have been seeking acceptable alternatives to the traditional EPS cups and containers to carry your peas, gravies and curries. It is very probable that the clock will turn back to the 1950’s when ‘Lily’ card cups were the norm before the arrival of EPS. However new materials are emerging with cups and containers being made from bagasse or expanded polypropylene (EPP) where the challenge is to have a secure lid fit.
Packaging problems aside, the strains on the global supplies of oils and fats have led to much higher prices as you will only be too well aware. Palm, soyoil, sun oil, rapeseed and coconut oil all suffered from the inclement weather patterns and labour difficulties experienced throughout 2020 whilst dripping supplies are subject to much lower raw material supplies. With an ever-increasing world population and greater global use of biofuel immense pressure has been placed on the tight supplies available. The world desperately needs good growing conditions and full harvests in 2021!
And just to round things off I can foresee that we are going to have problems with marrowfats this year. Peas are a difficult crop to grow, and the banning of agrichemicals makes this much harder for farmers. At best peas only yield 2 tonnes per acre whereas wheat, barley and other crops can yield around 5-6 tonnes per acre. Many farmers are refusing to contract to grow peas for they effectively lose money doing so. I believe that prices could rise by up to £2-00/12.5kg bag come September and that some companies will be unable to obtain supplies.
Happy days!
However, we have to count our blessings that we are all in a Trade producing a product that remains much sought after by the general public for over 160 years - and well done to you for keeping going during these extraordinary times!
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