Shares in UK meat processor Cranswick were up this morning (26 November) after the company said talks to secure price increases to offset higher costs were “progressing well”.
An increase in feed costs and upcoming EU legislation on animal welfare have pushed up pig prices in the UK and Europe.
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Cranswick said UK pig prices are at “record” levels and have led it to ask retailers to increase prices on its products.
Chairman Martin Davey said “ongoing constructive pricing discussions” and efficiency improvements had helped to offset higher costs.
Cranswick, which supplies own label products for retailers like Tesco and Sainsbury’s, booked a 21% jump in profit before tax to GBP22.5m (US$36m) in the six months to the end of September.
Revenue increased 6% to GBP418.6m, with underlying sales up 5%.
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By GlobalDataChief executive Adam Couch said talks with the retailers were “progressing well”. Looking ahead, he said new EU animal welfare laws could lead to “further EU herd contraction” next year.
Cranswick shares were up 8.9% to 804.81 pence at 10:32 GMT today.
