It’s been over two months since the vote to leave the European Union, and a few of the initial impacts could have been predicted, such as the drop in the value of the pound and the shrinking economy.
However, one effect of Brexit that you probably didn’t see coming is the soaring price of British bacon, as demand from China increases dramatically.
Due to severe flooding in China, which has devastated the Chinese domestic pork industry, the devalued British pound post-Brexit has made bacon in the UK more attractive and affordable to import.
In the first six months of 2016, exports of British pig meat have increased by 40,000 tonnes, compared to the same period last year, according to Britain’s leading purchasing company, Beacon.
The majority of exports have come from the UK, after the fall in sterling made it cheaper for foreign buyers following Brexit, totalling a 31% increase on the first half of the year.
The increase in demand has resulted in some suppliers raising their prices by up to 38%.
Emma Warrington, Senior Food Buyer at Beacon said: “The combination of such huge demand for British pork from China and the devaluing of sterling following Brexit is impacting our breakfast tables.
“Figures from our buttery suppliers show the price of British bacon rising, in some cases substantially, with data from Birtwistles showing that the spike in demand was equal to an additional 30,000 tonnes in the first six months of 2016.
“All of this means we might be paying a higher price for a bacon sandwich for the foreseeable future.”
The vote to leave the EU has sparked a string of warnings about the costs of major goods and food staples, including bottles of wine and supermarket produce.
The Customer Price Index measure of inflation reached 0.6% in July, the first set of data since the Brexit vote. This was the highest level of inflation in 20 months.
Beacon warns that inflationary pressure will ultimately impact crop quality, quantity and therefore price.
