News

Staying informed about market conditions is key for Ireland’s hotel, hospitality and care businesses. This knowledge helps operators to maintain healthy GP margins, provides guidance for menu offerings and informs strategic purchasing decisions.

Our European Supply Chain Analyst, Alex Gess, offers an overview of the latest changes in the market – from global supply chain dynamics to cost of living updates. For a complete overview of key commodity updates and ways to mitigate price increases, check out the full Q2 2024 Commodity Market Report.

Cost of Living

The inflation rate continues its downward trend, dropping to 2.3%, which is easing some price pressures on the supply chain and consumers. Stable costs for food, beverages, and textiles have contributed to this improvement, though prices remain higher than pre-September 2021 levels.

The European Central Bank may reduce the interest rate from 4.75%, which could lower mortgage and loan repayments. An early Easter boosted March retail sales by 1.7%, with food sales up 4% year-on-year.

Climate Change

Climate change continues to disrupt farming in Ireland, with floods impacting the spring planting of key crops like potatoes and carrots. Poor weather has also increased lamb mortality rates and reduced dairy cow milk yields.

Globally, extreme weather has caused the lowest wheat production in a decade and severe damage to the Spanish olive crop. These conditions are driving up prices and forcing farmers to adapt their crop choice to ensure more predictable yields and incomes.

Global Supply Chain

The global supply chain has faced significant challenges in early 2024 due to ongoing conflicts and environmental issues. The conflict in Ukraine continues to impact food availability across Europe, with sanctions on Russia constraining the supply of fish and oil. Additionally, the intensified situation in Gaza and conflicts involving Middle Eastern nations have disrupted primary shipping routes, leading to increased costs and extended shipping times.

Shipping through the Red Sea and the Panama Canal has decreased due to conflicts and drought conditions, respectively. These disruptions have prolonged delivery times and affected global trade.

Read our full Q2 2024 Commodity Market Report

Trinity’s complete Commodity Market Report offers invaluable insights into important price trends and provides expert recommendations for managing and minimising price increases. This report also covers product availability and seasonal produce, equipping you with essential information to make informed purchasing decisions.

We’re here to help.

If you would like support with any supply chain challenges you are currently facing, get in touch with us at news@trinitypurchasing.com