The CEO of 2 Sisters Food Group, Ronald Kers, has warned Russia’s invasion of Ukraine will pose as a threat to food security and result in further price hikes in food inflation of around 15% by mid-year.
According to Kers, input costs in chicken production have already increased by 50% in the past year and has predicted a 15% rise in food inflation by the middle of the year.
“This conflict brings a major threat to food security in the UK and there is no doubt the outcome of this is that consumers will suffer as a result. War disrupts the free flow of trade and the impacts for us are severe,” Kers said.
“For example, the input costs of producing chicken – with feed being the biggest component – have rocketed. Prices from the farm gate have already risen by almost 50% in a year.”
He added: “Before this war began, 4% to 5% food inflation was being forecast by mid-2022. But we now could see a hyper-inflationary environment at closer to 10 to 15% – more than it’s been for 50 years – if this conflict isn’t resolved quickly.”
Ker also revealed the food group is ” heavily dependent” on a stable agricultural sector, but cannot isolate themselves from events abroad.
“Commodities like animal feed and CO2 are vital for us,” he said.
“These pressures are piled on top of the acute inflationary environment we already have, and this is why we need cross-territorial collaboration food security strategies to bring some order amongst the chaos.
“The reality is companies like 2 Sisters trade globally, and the smooth flow of trade links between states are vital. Without measures to isolate states from food security risks, ultimately there will be less food and higher prices to pay, with the poorest in society hit hardest.”