Meat industry devastated by electricity bills
In response to pleading reports from its members around unrelenting energy prices, the Association of Independent Meat Suppliers (AIMS) has outlined several recommendations for the new UK Prime Minister to address.
“AIMS have been alarmed to hear from our members of the impact that unchecked energy price increases are having on their businesses and their customers and fear that unless the new government step in immediately with a significant support package then we are likely to see market failure with consequences for the rural economy, food security and the wellbeing of our members and their employees,” the report reads.
The short report looks at three case studies based on information sent in from AIMS members during the last week of August 2022, which the association says paints “a bleak picture of the reality of energy price rises”.
Tony Goodger, spokesperson for AIMS, added: “AIMS members are coming to us daily horrified by the amounts their bills have increase by. In most cases these are triple digit percentages.”
The case studies examine a vertically integrated poultry business which is expecting a monthly increase of 437%, with their initial costs at £22k expected to now amount to over £118k. Case study two cites a single specie abattoir, which is facing a 145% increase in energy bills; and case study three, refers to a standalone poultry abattoir which is looking at a bill of £900k.
“Businesses with cash in bank earmarked for expansion, site upgrades or other investment is now being eaten away simply by having to pay extortionate electricity bills,” said Goodger. “We are urging the new Prime Minister and cabinet to adopt the four simple and quick recommendations we are proposing in order that input costs can be held in check and increased cost of production not be passed to consumers in ever increasing price hikes.
“It is our belief that the cost of production is the single most important issue for the incoming Prime Minister as is it this which is driving inflation and, thus, the cost-of-living crisis.
By Bethan Grylls / New Food
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