‘People are ripping up contracts’: price of rice boils over into new territory in UK
The 20kg bags of rice stacked on ceiling-high shelving units look like any other but are the first to arrive in the West Yorkshire depot from Vietnam as the food price shocks fuelling inflation force companies to find cheaper ingredients.
Jason Bull, one of the directors of Eurostar Commodities, which imports rice and flour destined for restaurant chains, supermarket suppliers and caterers, says the Brighouse-based company is facing its biggest challenge in nearly 30 years.
“Brexit, Covid, the cost of living crisis, and the war in Ukraine, are all having an impact on the supply chain in different ways, and causing food insecurity,” says Bull.
“People are ripping up contracts and saying the price has just gone up … if you want it, you’re going to have to pay more. This is the hardest, most turbulent period for our business in its history.”
With UK inflation now at 9.1%, driven up by soaring fuel and food costs, Bull said the pressure on the family-run company is still increasing which is likely to mean more pain for households. Often, the reason prices rise for consumers is because businesses facing rising costs, pass them on.
“Fuel is still going up, so that’s increasing our costs, and shipping rates are going up again too, so we’re not out of the woods yet,” says Bull. “We’re going to see more inflation; I think it will probably top out at 12 or 13%.”
The company is passing higher costs on to its customers with the extra time involved in Brexit paperwork, another management worry. “We work on tight margins and high volumes,” says Bull, who adds that it “has never been harder to make sure food is in the supply chain and to get it in a timely manner and at the right price”.
Rice, along with pasta and bread, was one of the budget
Read more on theguardian.com
