ClickAJob News

UK consumers will have to pay more for their meat in the future, if the country's farming industry is to get back on its feet following the recent foot and mouth outbreak, a new report has warned.

Rising production prices are also likely to be passed onto shoppers, with the health of Britain's livestock industry "almost at breaking point", according to a study by Deloitte.

Many producers are facing rises of almost 100 per cent in feed costs, the largest expense they face in producing livestock, the business advisory firm warns.

In addition the rising price of wheat and soft commodities is also "compounding the negative impact of foot and mouth", the Deloitte study claims.

The report adds that British farmers may see their returns reduced further if other countries "close their doors" to the country's meat exports in the wake of the latest outbreak of the disease – with the £493 million-a-year industry likely to suffer as a result.

A subsequent fall in UK meat exports could also lead foreign competitors to "ramp up" their production efforts and secure a "competitive edge" over the UK's livestock industry, Deloitte warns.

Richard Crane, food and agriculture partner at Deloitte, stressed that British consumers held the key to "a more resilient future" for the country's farmers.

"UK shoppers will have to pay more for their meat. Increased prices will allow farmers to continue to meet the increasing demand for local, high quality meat," he explained.

"This is likely to be the inevitable cost of securing and also safeguarding the future of UK meat production," Mr Crane warned.

News that meat prices are likely to rise comes after claims that the cost of bread is also set to increase.

The National Association of British and Irish Millers (Nabim) warned last week that soaring wheat costs, as a result of growing global demand and poor harvests, meant that the price of a loaf would inevitably rise.