New Zealand's largest poultry supplier, Tegel, will be raising its prices by ten percent from July. Increases in labour, feed and fuel have all been taken into consideration.
“No business is exempt from the rising costs of labour, transport, fuel and logistics. We’ve also seen across-the-board increases in insurance and utilities, and this, coupled with employee shortages, has meant that there are no costs going down.” Said Egbert Segers, Tegel Chief Executive Officer.
The price increase won't cover the ongoing cost pressures on chicken producers. The war in Ukraine magnified the heavy strain on grain and oil seed product supplies, which are key components in chicken feed. The price of chicken feed is at a 20-year high.
“We understand our role as the market leader in chicken in New Zealand, so Tegel are working with retailers to ensure affordable options remain available to all customers. Chicken has always been a great protein source and is still significantly cheaper than most red meat cuts. We will continue to work hard to ensure it remains accessible to as many Kiwis as possible.”
