According to official statistics, UK manufacturers’ costs have “swelled in unprecedented fashion”, suggesting further increases in food prices later this year.

An analysis of various official surveys released by the Office for National Statistics on Monday found that supply chain challenges, rising costs and labour shortages have all pushed up prices for UK food and drink manufacturers.

Data shows that in March 2022, 60% of UK food and beverage companies reported being affected by rising energy prices, the highest of any industry and well above the 38% average across all industries.

The UK’s annual growth in consumer food and drink prices was 5.1% in February, the fastest pace in more than a decade.

“Prices are soaring like never before,” said one food manufacturer involved in the ONS survey. “Then there are electricity prices and wages for our raw materials – it’s very difficult. We’re trying to keep up with the growth.”

“We’ve experienced massive price increases across the supply chain. These have reached and included 100 percent increases,” echoed another food manufacturer.

Rising costs take time to move through the supply chain, and the latest figures suggest consumers are under increasing pressure. In March, nearly 60 percent of food and beverage producers reported that they had to pass on price increases to customers, up from 37 percent of all businesses.

Around a third of UK food producers also reported paying higher staff costs, while a similar proportion lamented difficulties finding workers.

“As a business, we continue to face significant challenges and remain in crisis management mode,” said one food manufacturer.

The figures are released as price caps set by energy regulators Rose April rose an average of 54%, reflecting a surge in international gas prices following Russia’s invasion of Ukraine.

Food makers are particularly vulnerable to rising energy costs, as about one-fifth of electricity prices are variable, a higher percentage than in other industries.

Faced with the rising cost of living, about a third of respondents said they spent less on food shopping and essentials in March, up sharply from a few months ago, adding to the weak demand facing manufacturers challenge.

Food and beverage businesses are more likely to incur additional costs due to the end of the Brexit transition period on January 31 last year, ONS figures show. As a result, more than half of food producers turned to UK suppliers.

In March, nearly half of businesses in the industry reported additional shipping costs — double the rate for all industries. A third said rising costs were due to increased red tape, while one in five said import prices had risen.

“Imported goods take longer to reach us. They cost more, and we have to consider other suppliers that are priced higher than what we were buying before,” said an animal feed manufacturer.