Retail prices for corned beef rose 25% this week as the shortage of raw material in Brazil finally took effect at store level.
Hikes coincided with an announcement by the Brazilian veterinary authority that an outbreak of foot and mouth in Mato Grosso, the country’s largest cattle producing region, would further disrupt cattle availability (The Grocer, October 15, p69). “Foot and mouth in the south is the worst possible news for frigorificos already struggling to keep up with growing demand,” said an industry source in São Paulo.
UK importers are braced for yet another round of fob price increases, which will further test consumers’ allegiance. Corned beef consumption occasions fell 11% last year in the UK [TNS May 2005].
Unrest in Seychelles
A report into problems facing the Seychelles tuna industry, on which Heinz relies for much of its canned tuna, including John West, has prompted environment minister Ronny Jumeau to commission an inquiry.
The purse-seiner trawler operators have complained about alleged escalating charges and inefficient practices at the port at Victoria.
Kenya, anxious to gain a foothold in the region’s fishing industry, is offering incentives to purse-seiners who choose to offload tuna in Mombasa, while Tanzania has been promoting Dar es Salaam as a cheaper alternative.
Tuna raw material prices are rising again after a short respite. Industry sources indicate that manufacturers would welcome any moves to cut supply chain costs.
Concentrate runs low
The British Soft Drinks Association is warning of immediate price increases due to a concentrate shortage. Grapefruit concentrate is unavailable following the destruction of 250,000 tonnes of Cuban fruit by Hurricane Dennis. The Florida orange crop was hit by Hurricane Katrina and prices have risen 30%. Poland’s apple crop was damaged by rain, forcing prices up 20%.