Energy costs are pushing Europeans into food poverty – Bloomberg — RT Business News

Higher utility bills force producers to pass on rising costs to consumers

Food producers across Europe are grappling with soaring energy prices, with that rise quickly making its way into the pockets of consumers struggling with a cost-of-living crisis, Bloomberg reported on Tuesday.

According to the report, citing a Bank of England forecast, a third of UK households are expected to spend more than 10% of their income on energy, and soaring grocery prices are increasing food poverty.

“It was the domino effect that happened with us having to take a huge increase in energy,” Ryan Peters, managing director of Brioche Pasquier UK, told the outlet. “We have to try to raise our prices a bit for retailers, and unfortunately that trickles down to consumers,” he said.

Kona Haque, head of research for commodities trader ED&F Man, warned: “I think the worst is yet to come with rising energy prices. This winter will be a game changer and treatment costs will likely increase.

Europe’s largest sugar beet producer, Suedzucker AG, said its first-quarter revenue was hit by a “substantial increase” costs of raw materials, energy and packaging.

Companies processing soybeans, rapeseed and sunflower seeds into cooking oils have reportedly slowed production in the UK and Europe and shifted production to other regions with lower energy prices.

Meanwhile, energy-intensive food factories across the continent could be forced to close if natural gas shortages trigger rationing, Bloomberg warned.

“Just as people struggle with their household budget, we must manage highly volatile energy and input costs, ensuring that every penny our business spends and receives as revenue is actively managed in time. real”, Tate & Lyle Sugars senior vice president Gerald Mason was quoted by the outlet.“We don’t run a casino. We make food, which gives us a great responsibility to do it right.

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