costs - Neighbourhood Retailer

NIFDA calls for support as members face crippling energy costs

Linda Stewart — Wed, 07 Sep 2022 14:33:16 +0000

Northern Ireland food industry leaders have called on incoming prime minister Liz Truss to focus on food to establish how the industry can be supported as it feeds the nation through what could be a difficult winter for households across the UK.

With rising energy costs impacting businesses, the Northern Ireland Food and Drink Association has highlighted that, while firms have tried to absorb as much inflation as possible, consumers could see higher prices for food and reduced ranges.

Michael Bell, Executive Director, Northern Ireland Food and Drink Association (NIFDA) said: “The war in Ukraine has had a ripple effect on the food system globally, as costs for fuel, feed and fertiliser continue to rise. NIFDA members have been striving to keep a lid on prices, trying to absorb as much of this inflation as possible, but, with costs continuing to rise across the food supply chain, there is a real possibility of price increases and reduced availability of certain ranges.

“Energy costs are severely impacting our NIFDA members now and immediate assistance is needed to help food manufacturers through the winter. It is vital that the government has plans in place to ensure disruption is minimised for food manufacturers, and to support companies with spiralling energy costs. If action is not taken urgently, there will be serious concerns about the sustainability and viability of businesses here.

“Given the fact that the majority of food produced in Northern Ireland is consumed in Great Britain, this is something which requires national attention. It is vital that our industry remains equipped to keep feeding the nation. The government needs a strong focus on food to see how the industry can be supported and keep prices under control ahead of a difficult winter.

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Derry dessert and juice bar closing doors due to ‘crippling costs’

Linda Stewart — Fri, 26 Aug 2022 09:50:05 +0000

A smoothie and juice bar in Londonderry is closing its doors next weekend as a result of the “crippling costs of energy and stock”.

Shake N Frappe on Carlisle Road in the city announced the news on social media on Wednesday, just under a year after the business was hit hard by a fire at premises next to their store.

While the Carlisle Road bar is closing, the Northland Road premises will remain open.

In a statement on social media, the dessert shop owners Rachael and Gary said they were “devastated”.

“It has unfortunately become a familiar story in the retail and small business industry in general, that the ever-increasing crippling costs of energy and stock, added to the already high costs of having a city centre shop have just pushed it towards being unviable,” they wrote.

“We haven’t had the smoothest of years as a new business opening but are so proud of what we have managed to achieve and maybe in a different economic climate we would not be taking this decision, but summer should have been our high season and we know the winter will only get even more difficult.

“Our little town has also still not fully recovered from the pandemic and we know all our customers are feeling the pinch.

“The stress and sacrifices being made in order to keep two shops afloat is having a negative impact on our family life and it’s our kids who are losing out on quality time with their parents.

“Therefore, we have made this difficult decision as a family and are doing what is right for us at this time.

“Northland Road shop (the OG shop) will be staying open as normal and we hope to be able to give it a little revamp in September so keep an eye on our fb [Facebook] page for updates on that.

“Thank you to everyone who has called in to Carlisle Road and supported us over this last year, we hope to see you all up there over the next 11 days before doors close.”

Meanwhile, Portadown café The Apple Patch announced their closure in November, saying they had made the decision due to “continually rising costs and difficulties recruiting new staff”.

“It has been truly heart-breaking to make this decision,” owner Kerry wrote.

“I really want to thank all our customers, all our staff (past and present), friends and family, neighbouring businesses, landlord and suppliers for their help and support over the past five years. It has been an exciting journey and would not have been possible without you all.”

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Moy Park reports 60% fall in pre-tax profits

Linda Stewart — Mon, 22 Aug 2022 09:14:17 +0000

Pre-tax profits at Northern Ireland poultry giant Moy Park have dropped by 61% to £29.7m as the company battles rising costs for chicken feed and other essentials.

Accounts for Moy Park Holdings (Europe) for 2021 showed a dive in pre-tax profits from £75.8m, despite 6% growth in revenues to nearly £1.6bn.

Moy Park, based in Craigavon, is Northern Ireland’s largest private sector company and one of Europe’s biggest poultry producers.

It sells branded and own-label poultry to retailers and foodservice companies and also manufactures beef and pork products, vegetarian food and desserts.

The company said that its performance had been hit by high cost inflation, which had affected the whole of the poultry industry.

However, it said measures such as cost control, close customer relationships and constant innovation had mitigated some of the challenges.

The strategic report filed alongside the accounts added: “In 2022, the whole poultry food sector experienced unprecedented cost increases in feed, utilities and labour.

“Moy Park’s customer models [and] additional negotiations, together with the recovery of the food service segment, has partially negated some of these costs.”

It explained that a big chunk of the costs were attributable to ingredients used in feed production, the prices of which were affected by global supply and demand, weather patterns and government policy.

But the business said that it monitored feed price closely and took advice from experienced commodity traders. The war in Ukraine has inflated the price of grain used in chicken feed.

Of its £1.58bn in revenue at Moy Park Holdings (Europe), £1.16bn was from sales in the UK in Ireland and £422m from sales in Europe. Its biggest individual customers accounted for revenues of £415m, £229.4m and £266.4m.

The company has sites in Northern Ireland, England, the Netherlands and France. During 2021, the company’s workforce fell slightly, from 10,209 to 9,972. However, the company report said that the wage bill had gone up, from £289m to £300m.

Looking ahead, the company said: “With an experienced management team, a strong product portfolio, a well-invested asset base and a robust financial position, we remain confident in the continued success and development of the business.”

Moy Park is part of US giant Pilgrim’s Pride but is controlled by Brazilian business JBS, which owns 80% of the former.

The accounts said the company had taken measures during the year to improve its sustainability and had received globally recognised certification for soya bean traceability.

It has also placed the single largest order in the UK for natural gas trucks, to help with decarbonisation of its fleet.

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Food costs push price rises to new 40-year high

Linda Stewart — Wed, 17 Aug 2022 13:36:49 +0000

Soaring food costs have pushed UK inflation into double digits for the first time since 1982, with prices continuing to rise at their fastest rate for more than 40 years.

Inflation hit 10.1% in the 12 months to July, up from 9.4% in June, the Office for National Statistics (ONS) said.

Soaring living costs are eating into household budgets, with prices rising faster than wages.

The Bank of England has said inflation could peak at more than 13% this year.

Energy, petrol and diesel costs are also contributing to inflation. But food and non-alcoholic drinks were the largest contributor to rising prices in July, according to the ONS.

The price of bread, cereals, milk, cheese and eggs rose the fastest, while the cost of vegetables, meat and chocolate were also higher.

Prices also rose for other staples, such as toilet rolls, pet food and toothbrushes.

The increase was above all economists’ forecasts in a Reuters poll for inflation to rise to 9.8% in July, and will do nothing to ease the Bank of England’s concerns that price pressures may become entrenched.

Despite warning that a recession was likely, the BoE earlier this month raised its key interest rate by 0.5% to 1.75% – its first half-point rise since 1995.

It forecast inflation would peak at 13.3% in October, when regulated household energy prices are next due to rise.

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Cost of living with a food allergy is over £1,400 a year

Linda Stewart — Wed, 29 Jun 2022 09:52:04 +0000

The average cost of living with a food allergy for individuals and families in Northern Ireland is estimated to be over £1,400 per year, new research has revealed.

New safefood funded research into the cost of living with a food allergy or coeliac disease in Northern Ireland has estimated that the average cost burden for a child with a food allergy is £1,414 every year, and £1,259 for an adult.

The research looks for the first time ever at the socio-economic cost of living with a food hypersensitivity (food allergy, food intolerance and coeliac disease) on the island of Ireland.

These costs are primarily medical costs including hospital visits and stays, as well as the cost of missed days from work, school, or college, and the cost of travel associated with medical appointments.

The research led by teams at Queens University Belfast and the Technological University Dublin also found that 43% of the adult costs (£542) were borne by the individual themselves, with the remaining 57% being shared with the health service (£717).

The out-of-pocket costs incurred by parents of food allergic children were slightly lower at 39% (£550), with 61% (£864) being shared with the health service.

Introducing the findings, Dr Gary A Kearney, Interim Chief Executive, safefood, said; “For the first time in Northern Ireland, we now have reliable and locally relevant figures for the true cost of living with a food allergy, food intolerance or coeliac disease.

“Collectively, these conditions affect at least one in ten of the population and symptoms can range from mild to life-threatening. What is clear from the research is that living with these conditions is a financial burden for individuals and their families.”

For those with coeliac disease, the associated extra costs were £1,365 a year for an adult, rising to £1,690 for a parent of a coeliac child. These costs were primarily due to medical visits but also health insurance and missed days from work, school or college.

For adults who were coeliac, 71% of the costs (£965) were incurred by the individual, with 29% (£400) shared with the health service. For parents of coeliac children, 60% (£1,011) were out-of-pocket costs with 40% (£679) shared with the health service.

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