Chicken producer Tegel is raising its prices by about 10% as it faces rising costs, including rising grain prices due to war in Ukraine.
New Zealand’s largest poultry supplier said its prices would rise from July.
Local and international factors were behind the move, and the 10% increase will not cover some of the higher costs facing chicken producers, Tegel CEO Egbert Segers said.
“No business has been exempted from the rising costs of labor, transport, fuel and logistics.
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“We have also seen increases in insurance and utilities across the board and this, coupled with employee shortages, has meant that there is no cost reduction,” he said.
Ross Giblin / Stuff
Chicken producer Tegel is increasing its prices by about 10% due to rising costs.
The price of feed has been high for more than 20 years. There were problems with the availability of grain before Russia invaded Ukraine and prices rose, but the war made matters worse.
“The war has now put additional pressure on the availability and supply of grain and oilseed products, which are key components in chicken feed around the world.”
Tile has tried to ensure that affordable options are available to all customers, he said.
Tegel also increased chicken prices by about 10% last August, due to rising costs of labor, feed and fuel.
Last month, the company warned that a shortage of carbon dioxide gas in New Zealand could mean it would not be able to use some of its products in the coming months.
Food prices are generally rising, with the latest food price index rising 6.8% in May from a year earlier. Meat, poultry and fish prices rose by 7%, but all food categories increased, Stats NZ said last month.
Food prices also rose compared to a month earlier, 0.8% higher after regular seasonal impacts were removed.
Tile joins other New Zealand food producers in the fight against rising costs.