Steve Murrells, CEO of Co-op, said the cost of feed has become a huge challenge for the poultry industry. “Chicken could be as expensive as beef. “Chicken, which was incredibly cheap and excellent value for money, swells faster than any other protein.” Chicken is the most popular meat in the country, with consumption levels far exceeding that of beef, lamb or pork. At a time when household food bills are already rising, higher priced chicken is likely to have a disproportionate impact on lower-income families. Consumers were warned late last year that prices needed to rise to reflect the real cost of food production from 2 Sisters, the UK’s largest poultry supplier. “How can it be right for a whole chicken to cost less than a pint of beer?” said Ranjit Singh Boparan, owner of Bernard Matthews and 2 Sisters Food Group at the time. Boparan, which plants more than 10 million birds a week in the UK and Europe, said labor shortages and rising commodity prices meant fewer options and higher prices. This inflationary picture was exacerbated by the new price shock caused by the Russia-Ukraine war. In a March update, 2 Sisters said its input costs – of which power is the largest component – had skyrocketed. “Prices from the farm gate have already risen by almost 50% in one year,” he said. Ingredients included in chicken feed include, soy, sunflower oil (by-product of sunflower oil) and wheat, which have risen in price. In normal times, Ukraine and Russia are the most important producers of sunflower oil and wheat. Fast food chains like Nando’s and KFC are among the big names that have risen in price in recent months. However, a whole bird can still be bought for less than £ 3 at the supermarket. At present, Tesco, the largest in the United Kingdom, meets the Aldi price of whole chicken at 89 2.89 – or 7 2.07 per kilogram. Tesco’s cheapest ground beef is 78 3.78 per kilo. Data from the Office for National Statistics show that the average retail price of chicken has increased by 31 points, or almost 12%, to 2.98 λό per kilo in the last 12 months. For the minced meat the price per kilo is 6.78 £, after a similar increase. The price per kilo for the two meats is more in line with the top products, such as the organic product lines. Murrells, speaking at the Retail & eCommerce executives forum, said customers could turn to other meat or vegan alternatives if the price of chicken continued to rise. In statements initially quoted by the Sunday Times, he said: “Customers need to know what they can afford. They will buy a chicken, roast it on Sunday, but then use the entrails and everything else to make a soup. “Customers will find creative ways to make the food last longer.”
