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High food inflation linked to major environmental issues, report finds

9th Dec 2019 - 10:28
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Abstract
Whilst food and drink inflation for restaurants and caterers finished 2018 at 3.7%, 2019’s rate almost doubled to 6.1%, and that many of these cost challenges were sustainability related, 2019’s CGA Prestige Foodservice Price Index Report shows.

Fish prices ‘soared’ during the year, with pressure on stocks caused by more than 75% of the world’s fisheries being either fully or over-exploited.

Fruit/vegetable prices too have run ‘well ahead’ of expectations with storms, flooding and drought all impacting production in the UK and Europe. These issues have been building over recent years, and the report identifies a discernible trend of increased disruption.

It draws attention to:

• Friends of the Earth believe that over 30% of Greenhouse gases are generated in some way by the food system.

• Climate change, reduced biodiversity, and lower soil fertility are outcomes of a food system that is intended to nourish us.

• Supply chains are often long and opaque, meaning that consumers often don’t know that their actions contribute to the 8.5m acres of annual deforestation globally.

David Read, chairman of Prestige Purchasing said: “Our food system was built with the aim of feeding the world at an affordable cost. Now it’s contributing to the destruction of the planet.

“Urgent reforms are required to create transparent supply chains that protect the environment, and the people that create the food that we eat. The EU’s food sustainability standards are higher than many other areas of the world, and Brexit has the potential to impact sustainability negatively. Care must be taken to protect UK farming, which has been built on a foundation of high standards of sustainability, hygiene and animal welfare” 

The Report calls for operators to take immediate action on raising sustainability standards in four areas: deforestation, renewables, transport and waste – by measuring and action planning to eliminate avoidable waste.

Said Fiona Speakman, client director of CGA’s Food & Retail Team added: “Food supply is becoming an ever-more crucial issue for both operators and consumers. CGA research reveals that 45% of consumers rate sourcing environmentally-friendly ingredients as important and 66% are trying to live an environmentally-friendly lifestyle.”

 

Written by
Melissa Moody