Canned goods prices look set to climb as a result of massive increases in global steel prices, according to industry sources.
Crown Food UK & Ireland, which supplies canning packaging to major UK food manufacturers, said it would have to push its prices up by an average of 17%.
Commercial director Graham Crowe said: “The price rises are being driven by growth in demand from China, creating a situation where overall demand is outstripping supply.”
Other factors contributing to price rises included energy, coatings and transport costs, according to Crowe.
He said customers had reacted with disappointment to Crown Food UK’s decision, although they understood the reasons behind it. He added: “Manufacturers have been having sensitive discussions for several weeks, but they will find it difficult to absorb increases of this magnitude.”
The pressure comes on top of shortages of plastics as demand and raw material prices rise (The Grocer, November 13, p9).
However, the British Plastics Federation played down the situation: “While raw material prices have increased on the back of rises in oil prices and increasing demand, it would be unwise to speculate about allocation or to generalise.”