It’s been predicted that grocery inflation may hit 10% by the end of 2022 (Clive Black, Shore Capital). It’s important for us to share with you why, so you can continue to make informed decisions around food for you and your family.
At Sasha’s Fine Foods, our objective is to support small scale farmers, fishermen and producers both domestically and internationally, whilst ensuring that we are providing you the best quality food at a reasonable price.
At the moment, that makes for a fun challenge. This may feel like a long message, but hard stories need words.
So What’s Happened?
There are a number of factors that have contributed to the current situation:
- Avian flu in Europe is creating scarcity for export. Demand for chicken remains the same, so resultant market forces are driving up prices.
- A lot of the world’s grain, one of the key components of fish and livestock feed, comes from Ukraine and Russia. This is no longer available, so our farmers and fishermen are seeing the price of feed increase by over 50%.
- Energy supply has also been hit by the Russian invasion of Ukraine. This has hit European suppliers directly, but there has been a knock on impact to the rest of our producers.
- Diesel prices have also been impacted by the Ukraine crisis. Fuel is now three times more expensive than this time two years ago.
- Covid still continues to disrupt the workforce across the world as production is slowed given the splitting of teams and mandatory absences.
- Beef demand in emerging markets is causing a global shortage, especially in light of challenges related to feed, energy & Covid.
- Singapore GST will be increasing later this year by 1% to 8% to pay for elderly care, pre-school education & security.
The recent Malaysian chicken export ban is symptomatic of the challenges the global food chain faces.
What Are We Definitely Not Changing?
Here’s our commitment to you:
- We will continue to source some of the best tasting, highest quality, hormone & antibiotic free food from within Singapore and abroad for you to enjoy.
- We will continue to do our best for you our customers, in getting high quality food at the lowest sustainable price.
- We will not stop supporting farmers who are feeling the pinch. We won’t stop trading with them, and we certainly won’t white label lower quality product: we have their backs.
- We will continue to reject recurring and aggressive promotions, which only prove you are being charged too much for the original price. We run promotions due to usual major celebrations (e.g. the company’s birthday) or to avoid food waste.
- We will never increase our prices unless we have exhausted all efforts to drive down unnecessary costs at our farms, freight & here in Singapore.
- We will not sacrifice the quality, provenance or traceability of our food during this period. Be mindful of low prices in a current high cost climate, corner cutting is a risk.
- We will not stop providing industry leading service. Over 95% of our orders are delivered within 15 mins of the exact minute we tell you. And 99.96% of the time, what you actually order will be delivered.
What Are Changing?
As you can imagine, this is squeezing us. However, we love a challenge, and are finding creative ways to drive efficiencies. Here are a few examples that aren’t trade secrets!:
- We are reducing import costs by moving to sea freight where possible, or collaborating with those also importing into Singapore.
- We are routing more efficiently, and also ensuring our drivers are driving more efficiently. This year our diesel per delivery has decreased 8% vs. last year.
- We are allowing local small scale producers to use spare space in our warehouse and on our trucks to reduce overheads and to support local businesses.
|After a recent upgrade of our site that makes navigation even easier, you can now see the $/100g or per unit so that you can be more informed about prices.|
|For our ‘ready to eat’ or staple items that can help feed you well at a good price, we have created an ‘Everyday Excellence’ filter so you can shop more cost consciously.|