Hospitals hit by Brexit food price hikes DAIRY PRODUCTS CRISIS LOOMS
HOSPITALS face winter price rises on dairy products because of the pound’s fall since the Brexit vote.
Some NHS trusts have received “urgent” demands from dairies for immediate increases – in breach of contracts requiring producers to give three months’ notice of any hikes.
Since milk prices hit a record low, many British farmers now export. Others have gone out of business.
NHS Supply Chain, which provides food and drink to a third of hospitals, said the weak pound has made exporting more profitable.
The chain said: “There is a risk suppliers will have to restrict provision to trusts as they can’t source raw milk to meet NHS demand.
“As a result they’ll focus on more profitable clients.”
The warning comes days after Tesco and Unilever ver clashed on planned priceice rises to hundreds of products such as Marmite and PG Tips. Last night the Patients Association said: “It is vital trusts andd suppliers reach early agreement on fixing this problem.” Dairy farmers are now paid just 21p a litre for milk – 7p less than the 28p it costs to produce. UK dairy herd numbers have plunged. There are now just 13,300, compared with 35,0 35,000 20 years ago. An industry expert said: “T “The NHS needs to realise w we can’t keep cutting the w wholesale cost of milk.” NHS Supply Chain said: “We are working to mitigate any price increases.