Raw Material Costs Rise
August 25th 2010
You may have seen quite alot of coverage of the situation regarding world wide wheat supply, the heatwaves in Russia together with floods during sowing in Canada have had an impact on world wheat prices particularly since Russia stopped all exports. To be fair this should not be enough to cause the rises; we are seeing this situation arise and bemade worse by commodity speculators ramping up the futures market in wheat.
What does this mean for the UK? Well, wheat prices have already risen by £89 a tonne something we can cope with BUT watch out for the effect on meat and dairy prices as we see animal feed prices rise in the winter, this could have a very large impact on food pricing and together with the increase in VAT due in January will cause some food prices rise a great deal.
At Halls we are constantly looking to control our costs and our commitment to sourcing from local producers helps us to keep costs down as we are easy to supply, pay on our suppliers on delivery and have very low food miles so have less logistical costs. We are undergoing a review of suppliers and we are aiming to add some new local suppliers to our list as well as moving to some free range product. All this will mean an ability for us to keep any price rises to a minimum (even we will need to raise prices with the vat increase) and in some cases hold the price.
We will still be able to offer superb value catering for businesses in Chorley, Leyland and Preston and our mobile shops will be able to provide great value fresh food and help the environment by keeping total journeys away from the work place for lunch etc lower. Our outside catering will remain excellent value for money and our ever popular pie and peas will certainly still be a firm favourite because of its superb value as well its great taste.