Getting to the meat of it

28 August 2007

A Deloitte report published today warns the cost of dairy, bread and meat will have to increase as British farmers pass on the burden of rising wheat costs.

Floods, the recent foot-and-mouth scare and the desire for biofuels which has increased demand, and therefore prices, for grain have all hit the industry hard. Now analysts say consumers will have to bear some of the brunt.

While it is currently the fashion for shoppers to be concerned about sustainability and local sourcing, will they put their money where their mouth is?

Buyers have recently shown support for local suppliers. For example, Waitrose pledged to buy hail-damaged apples at a fair price and sell them on to shoppers, highlighting the reason for their appearance. But will purchasers continue this policy, or is buying British becoming too expensive?

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