Costs 'to push up' food prices

The price of food and drink is set rise due to spiralling business costs, it was warned today.

The price of food and drink is set rise due to spiralling business costs, it was warned today.

Food and Drink Industry Ireland (FDII) said bread, breakfast cereals, and soft drinks, as well as canned, packaged and frozen foods are all likely to cost more in coming weeks.

Dramatic increases in the cost of energy, services, labour and ingredients have been blamed for driving up food production costs.

"The industry is at breaking point and has no option but to pass on some of these costs to retailers," said FDII director Paul Kelly.

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"Ultimately, these increases are likely to affect retail prices across the board, from large supermarkets to local corner shops.

"In the last year food prices have increased by only 1.8 per cent, but input costs have increased by a multiple of this. This is simply not sustainable and food companies must recover these costs.

The organisation warned that 12 different factors are pushing up food prices.

They include the cost of wheat rising by 25 per cent in the last six months, fruit and fish increasing by 35 per cent, and other foods going up, including ingredients such as tomato paste by 10 per cent, and rapeseed by 30 per cent. Glucose is expected increase by 30 per cent.