London (CNN Business) The price of crucial components, such as cod and frying oil, has skyrocketed as a result of Russia's war on Ukraine, putting the UK's fish-and-chip businesses under great strain.
According to Andrew Crook, president of the National Federation of Fish Friers, as many as a third of the country's 10,000 fish-and-chip eateries might close in the next nine months. He told CNN Business that the crisis is the worst he's seen.
The trade association, which has been operating for over a century, represents 1,200 fish-and-chip shops.
Crook, who owns his own company, said prices began to rise at the end of last year, but staple ingredient costs have risen dramatically since Russia invaded Ukraine in late February.
"Everything has gone up across the board," Crook remarked.
Supply chain snarls have been compounded by the conflict in Ukraine, and businesses across industries are dealing with rising pricing. However, due of the industry's reliance on Russian imports, British fish and chip businesses, which have traditionally operated on razor-thin margins, are feeling the pinch.
According to Crook, Russian waters supply up to 40% of the industry's cod and haddock, and Ukraine supplies roughly half of the sunflower oil.
According to Crook, companies are paying 83 percent more for sunflower oil now than they were in early March. The price of palm oil, a typical substitute, has risen. Last month, Indonesia, the world's largest exporter of palm oil, began limiting exports to help keep domestic supplies in check.
Energy expenditures are skyrocketing, and the cost of fertilizer, which is required to grow potatoes, is skyrocketing as well.
One of the unofficial British national meals is fish and chips. According to the trade association, the first shops emerged in the 1860s and quickly grew as the country became more industrialized, assisting factory workers with food. The meal was so crucial to the working class that it was excluded from rationing during World War II, even though other basics like tea, butter, pork, fish, and chips were.
Customers anticipate low-cost fish and chips, according to Crook. Crook estimates that a typical cod and chips would have cost around £7 a year ago. He thinks it's now around £8.50, up 21%.
"We're at risk of pricing ourselves out of the market," Crook added. Some people have already left.
He continued, "I've lost a few regular customers who used to come every Friday."
Fears that the UK government may impose high import taxes on Russian white fish have prompted firms to stockpile alternatives, driving up the price of the Icelandic and Norwegian fish Crook purchases.
A case of Icelandic cod now costs £270 ($331), up from £140 ($176) a year ago, according to Crook.
Customers facing the biggest cost-of-living crisis in decades face an uphill battle selling fish and chips to businesses like Crook's. According to the Bank of England, annual consumer price inflation reached 7% in March, the highest level in 30 years, and may reach 10% later this year.
According to a poll conducted by the Federation of Small Businesses, more than half a million small businesses in the UK — roughly one in ten — expect to close, downsize, or sell up in the coming year due to a lack of funding.
Crook is invested in the success of his shop.
"It's not just a job for me. Many of us have inherited family enterprises "he stated. "I'm the second generation in the family business, and you don't want it to fail under your watch."
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