So why does the price of cereals in Russia affect the price of my fillet steak ?
20 years ago some of us would not be able to show you where Dubai was on a world map, or that a
20 years ago some of us would not be able to show you where Dubai was on a world map, or that a
country called Latvia existed. Now we would not think twice about going there for a holiday or long weekend. The world is a lot smaller place, and moves at a far higher pace. As a result , local situations now have national and international consequences far quicker than ever before.
Globally, the current economic situation and the environment are the major influences along with political instability. We have seen raw materials reach unparalleled highs across a number of sectors not just meat, but fuel and in particular cereal which has risen dramatically.
Globally, the current economic situation and the environment are the major influences along with political instability. We have seen raw materials reach unparalleled highs across a number of sectors not just meat, but fuel and in particular cereal which has risen dramatically.
This has had a number of affects and continues to be affected by a number of factors.
Adverse weather conditions are affecting cereal
Adverse weather conditions are affecting cereal
across the globe with a whole seasons crop being washed away on one continent while on another there is greatly reduced rain fall.
The BBC Radio 4 programme “Farming Today” quoted one arable farmer as saying his harvest was going to be 15% down on last year, and if there is not significant rain fall in the coming weeks this could increase to 20 or 25 percent”. This is in addition to the large number of farms that have converted their animal feed crops to oil seed rape, capitalising on the high prices, and greater yields of this crop for bio fuel production.
Demand, around the world has also increased, with “emerging markets” such as China, the Middle East, India, and parts of south America, playing a bigger and bigger part in the commodities market, and subsequently affect prices to a greater and greater extent.
All of this factors have had predominately one affect, and that is to increase prices. All meat prices have risen and while they may fall back a little month on month we are unlikely to see them return to the levels of previous years. British Premium Meat are fully aware that any increase, big or small has an affect on our customers. Therefore we are constantly reviewing our supplier base, production methods and pricing polices, to ensure we and therefore you, our customer are getting the best value for money.
However, we do at times need to increase prices. We can assure you though that these increases kept to the bear minimum and that as soon as markets allow are reduced back.
We would thank you for your cooperation in these hard financial times and look forward to continued trade with you.
However, we do at times need to increase prices. We can assure you though that these increases kept to the bear minimum and that as soon as markets allow are reduced back.
We would thank you for your cooperation in these hard financial times and look forward to continued trade with you.
