May 2025 Market Report
MARKET NEWS
Food Inflation Continues to Rise: Labour costs a big factor.
The recent tax increase and global tariff wars could lead to a surge in foodservice
price inflation in the next few months, analysts have warned.
Businesses have been advised to stay “laser-focused” on cost management and margins to navigate the potential challenges ahead.
Foodservice price inflation has eased in recent months, with the CGA Prestige Foodservice Price Index dropping by a marginal 0.1 point from January 2025.
Year-on-year inflation held steady at 1.8% in February, while month-on-month inflation saw a slight decrease of 0.1%.
However, six out of 10 of the categories tracked by the index experienced month-on-month inflation in February and only one category showed year-on-year deflation.
The highest year-on-year inflation was observed in oils and fats at 5.7% and coffee, tea and cocoa at 6.8%.
Cocoa and coffee prices remain at nearly double the average price compared to 2023.
Meat and poultry prices are also under significant upward pressure with beef prices continuing to trade at record highs, and price rises in chicken being seen due to the avian flu outbreak in Poland.
Analysts said the full impact of US tariffs on prices has yet to materialise and the situation remains uncertain.
COMMODITIES REPORT
Fruit & Vegetables
vMay is always an exciting month with the beginning of the new salad season and
both stone fruit and berries starting to arrive.
English Asparagus continues to be available, as a result of a fantastic crop this year.
We expect supply to finish mid-June.
Jersey Royal potatoes are now available in decent volumes. Strawberries are already coming in from the UK and we expect Raspberries to follow soon. UK cherries will hopefully arrive by the end of the month – a classic sign that summer has arrived!
Spanish stone fruit such as peaches and nectarines are due to arrive, along with
their flat varieties, in the coming weeks.
Also, in season in May:
- UK Heritage Tomatoes
- Nettles
- UK Peas
- Spanish Melons
- Wye Valley Rhubarb
Cantaloupes are in short supply at the moment as the Spanish season is just starting but the South American season has already finished.
Wild garlic season is pretty much over, and supply will dry up very soon. UK Cox’s apples have now finished for the season, but we should see New Zealand fruit arrive before the end of the month. Purple sprouting broccoli has now come to the end of the season.
Beef:
Beef from the UK and EU continues to rise in price as demand continues to outstrip
supply. Constraints on the supply chain have been exacerbated by farmers pushing
cattle to market earlier to take advantage of the high demand. This means we can
expect supply to tighten even further over the coming months, affecting price further.
Poultry:
There continue to be several large outbreaks of avian flu in Poland. As Poland is the EU’s largest exporter to the UK, this continues to affect supply, and our suppliers are reporting shortages on a weekly basis. We expect further price increases on all cuts of chicken as suppliers compete to secure product.
Seasonal Recipe Suggestion
A very simple way to cook corn on the cob, making the most of the beautiful sunshine!
Chilli Lime Corn on the Cob
Ingredients:
4 Fresh Corn on the Cobs
2 tsp Lime Juice
1 small Red Chilli
3 tsp Olive Oil
Method:
1. Combine the lime juice, chopped chilli and olive oil. Brush this mixture onto the corn cobs and wrap each one in foil.
2. Preheat your barbecue to a medium-high heat, cook the corn whilst continuously turning for 8-10 minutes. Keep doing this until the corn is lightly charred and tender.
