11/01/2010 - Big freeze raises food price fears
Small businesses may be hit by higher food prices as farmers struggle to harvest their produce during the big freeze, it has been claimed.
The Federation of Small Businesses - which has 215,000 members, some of which are in food and retail sectors - says that a shortage of vegetables in stores may push prices up and damage retailers.
The body's chief spokesman Stephen Alambritis said: "Our members have had a run on vegetables and food, which they were pleased about because it brought them in some money - but the replacements have been thin on the ground.
"There is concern that farmers have not been able to bring the harvest in for such items as potatoes, sprouts and cabbages, reducing the amount available to stores and pushes up prices."
He added: "Supermarkets may be able to hold prices for now but small businesses will have to pass increases on to their customers, which is damaging for business.
"And even the supermarkets may have to push up prices if this goes on until February."
However, the British Retail Consortium said there was no evidence to suggest that retailers may be suffering any shortage at the moment or that the freezing weather will continue long enough to affect food prices.
Copyright © Press Association 2010
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