Price of bacon to soar due to China and Brexit

The price of bacon could be about to soar due to increased demand from China and the impact of Brexit, according to purchasing company Beacon.

The company, which represents around 2,000 independent hospitality and leisure businesses, warned that flooding in China had led to an increased demand for pork imports. This had in turn, driven up British pork prices, with smoked bacon increasing by up to 38%, it revealed.  

The purchasing company also said that Brexit and the fall in the strength of the pound had also affected prices. The devalued British pound post-Brexit made British bacon more attractive and affordable to import, it said.

Pig meat exports increased 40,000t

In the first six months of 2016, exports of British pig meat increased by 40,000t, compared with the same period last year.

Furthermore, over half of EU pork exports – 1.2Mt – have gone to China, a 60% increase on the same period last year, according to the Agriculture and Horticulture Development Board.

Beacon, which works with a range of butchery suppliers and manages over £100M in purchasing spend for its customers, reported an increase in price of up to 19% a pound for bacon products, which it predicted would continue for the foreseeable future.

And it is not just bacon that is suffering a price hike. It said the price of chips was set to rise following currency issues and continued flooding in Europe, which has resulted in inflationary pressures.

Beacon had predicted this would hit crop quality, quantity and therefore price.

Higher price for bacon sandwiches

Emma Warrington, senior food buyer at Beacon, said: “The combination of such huge demand for British pork from China and the devaluing of sterling following Brexit is impacting our breakfast tables.

“Figures from our butchery suppliers show the price of British bacon rising, in some cases substantially, with data from Birtwistles showing that the spike in demand was equal to an additional 30,000t in the first six months of 2016.

“All of this means we might be paying a higher price for a bacon sandwich for the foreseeable future.”