The Grocer – 20 July 2019

focus on... poultry

PB | The Grocer | 20 July 2019 Get the full story at thegrocer.co.uk Get the full story at thegrocer.co.uk 20 July 2019 | The Grocer | 49

50 Price concerns

Consumers are chasing cheaper

meat as chicken volumes rise

while turkey and duck fall

51 Brexit: help or hindrance?

Welfare is at the top of the

concerns for eggs a er Brexit –

but consumers buy British

focus on... poultry

Brexit: help or hindrance?

Welfare is at the top of the

concerns for eggs a er Brexit –

but consumers buy British

focus on... poultry

50 Price concerns

Consumers are chasing cheaper

meat as chicken volumes rise

while turkey and duck fall

51 Brexit: help or hindrance?

Welfare is at the top of the

concerns for eggs a er Brexit –

but consumers buy British

Playing chicken

As Boris Johnson et al threaten a no-deal Brexit, the EU standoff is

putting one British tradition on the line: the chicken dinner

But there is a serious question mark over

how long that can continue. Last year, the

British Poultry Council warned there could

be a 25% hike in prices in the event of a no-

deal Brexit. In the worst case, it said Brits

could be at the mercy of a “two-tier food sys-

tem”, with the average Joe relying on “lower

standard imports”.

Even in the case of a deal, the devaluation

of the pound and loss of a largely immigrant

workforce could put pressure on prices.

So could Boris Johnson unwittingly kill o

T

he chicken dinner is a British

tradition. Whether smothered

in gravy, breaded or made into

hearty stew, its comforting cre-

dentials have earned it a solid place in the

heart of the nation. And unlike many other

traditions, it shows no sign of fading into the

past. The average British household tucks

into 26 whole chickens a year. That makes for

a whole lot of dinners.

Indeed, the supers have shi ed an extra

12.9 million kilos of frozen and fresh chicken

in the past year, a rise of 2.3% [Kantar 52 w/e

24 March 2019]. That’s made chicken sales

worth just shy of £2.2bn.

It’s not just taste that’s driving this massive

increase. There’s also price. At an average of

£2.51 a kilo, whole chicken is the cheapest it’s

been in  ve years.

Natalie Brown the chicken dinner? Just how far will prices

rise? And what appetite is there among British

consumers for chicken imports?

A rise in prices is, to some extent, inevita-

ble. Even now, the industry is feeling the pres-

sure. “Last year the cost of producing poultry

was actually considerably higher than the

year before,” says Jim Brisby, group commer-

cial director at meat giant Cranswick.

That’s because the company imports wheat

and soya as the main ingredients for its feed.

Already, Brexit uncertainty and its e ect on

the pound is making that more expensive.

For now, the consumer isn’t seeing any of

that pressure.

“It’s retail competition that’s driving the

prices down,” says Brisby. “Retail prices are

utterly decoupled from the cost of the meat

itself and it becomes a product the retailers

choose to compete over.”

That’s not all. Cranswick is also trying

“Retail prices are utterly

decoupled from the cost

of the meat. Retailers

compete over it”