London, UK: Food firms are “at the eye of a very powerful storm” and “cannot operate at a loss” amid cost rises, Karen Betts, chief executive, Food and Drink Federation, says.
Betts told Sky News that while companies in the sector were acutely aware they had a responsibility to keep food and drink affordable, the latest consumer price index inflation figures showed the sector was under “incredible pressure”.
“There are massive cost rises that companies are dealing with, whether that’s ingredient costs, energy costs or material costs,” she said.
“The cost of importing ingredients has also gone up with the relative weakness of the pound.
“So producers really are at the eye of a very powerful storm and at the end of the day they have to keep their businesses viable, they can’t operate at a loss and that’s why you’re seeing these increases.”
