Bernard Matthews' chief executive Bart Dalla Mura says the company will have to pass the soaring cost of feed grain on down the supply chain "in some shape or form"
Feed grain on the futures market has risen from £80/t in October last year to £128/t on July 23. The price is up 28% since the end of April. Delivered feed grain prices were at a weekly average of £120/t as Food Manufacture went to press. Arid harvesting conditions in the east and wet weather in the west, plus rising demand, are fuelling the trend.
Dalla Mura said: "We're watching costs and the UK local crop. We won't be able to bear these increases. We have to pass them on in some shape or form. Feed grain is a very important part of our cost base."
The manufacturer receives much of the feed grain for the animals on its farms from farmers in East Anglia.