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Higher food prices should be expected, Heinz boss warns shoppers

Miguel Patricio, the chief of Kraft Heinz, has said the company is raising prices around the world for a slew of products such as cupboard staples ketchup and baked beans

There are fears about empty shelves in supermarkets

Shoppers should expect to see higher food prices, according to the Kraft Heinz chief.

Miguel Patricio said the firm is “raising prices, where necessary, around the world” of products including ketchup and baked beans.

Mr Patricio said this was because of a lack of truck drivers in the UK and labour shortages and an increase in logistics costs in the US.

He told the BBC consumers will need to get used to paying more for food due to the world’s rising population and a lack of land to grow produce.

But he also said firms would have to take on the cost rises, adding: “I think it’s up to us and to the industry and to the other companies to try to minimise these price increases.”







Speaking about the reason behind the increases, Mr Patricio said: “Specifically in the UK, with the lack of truck drivers.

“In (the) US, logistic costs also increased substantially, and there’s a shortage of labour in certain areas of the economy.”

It is also because inflation was “across the board” unlike in previous years, he said.

Kona Haque, head of research at the agricultural commodities firm ED&F Man, told the broadcaster: “Whether it’s corn, sugar, coffee, soybeans, palm oil, you name it, all of these basic food commodities have been rising.”

It comes amid fears over supply chain issues ahead of Christmas.



Miguel Patricio is the chief of Kraft Heinz
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Image:

Getty Images)




Business advisory firm BDO LLP said its research suggested that economic growth had slowed for five months in a row due to disruption.

PM Boris Johnson has refused to rule out shortages at Christmas while Chancellor Rishi Sunak said distribution problems with some key goods could continue for months.

Foreign Secretary Liz Truss said any shortages at supermarkets would not be the fault of No10 or the Government.

According to the Office for National Statistics, one in six people has been unable to buy essential food items in the past fortnight.

A survey by The Grocer found that a third of people had started stocking up on Christmas food and drink or were planning to by the end of October.

Two-thirds of Brits said they were concerned about the shortages over the festive period.


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