The Impact of Rising Food Prices on Farmers

Meals costs within the UK have soared at their quickest charge for nearly 45 years, with grocery costs rising by 19.1% within the 12 months to April.

“I do know individuals are paying extra for his or her bag of potatoes or bag of carrots, but it surely’s not as a result of we wish more cash,” mentioned Pembrokeshire potatoe farmer Tessa Elliot .

“Our prices have gone up drastically and we’re nonetheless making an attempt to know the place we will even make a revenue.”

Money stream is all the time a problem for potato farmers, who can wait greater than a 12 months to be paid for his or her crops after harvesting.

However for the reason that Covid-19 pandemic and Russia’s invasion of Ukraine, meals manufacturing prices have jumped.

“For fertiliser we had been paying £290-odd and it shot as much as £900 for that very same bag,” mentioned Tessa, whose household has run Cresswell Barn Farm for greater than 40 years.

“Seeds had been up £40 a tonne. Labour prices went up. There was nothing that didn’t go up double, if no more.”

Whereas these prices undermined farmers’ income, in addition they translated into increased prices for customers, with meals costs growing by practically a fifth between April 2022 and April this 12 months.

The Competitions and Markets Authority is at the moment investigating all supermarkets over excessive meals and gas costs amid allegations that clients are overpaying.

However supermarkets insist they’re working to maintain costs “as little as potential.”

Matthew Hunt runs Filco, an impartial chain of supermarkets in Wales, mentioned: “It’s very a lot an ideal storm in the intervening time, you’re seeing value will increase coming from all instructions – the three main ones are gas, labour and power.”

He mentioned his firm was not passing on the total value will increase to clients: “It’s squeezing how we function and we’ve to have a look at ourselves and see the place we will take prices out of our operations.”

The UK authorities has floated the concept of a voluntary cap on fundamental meals costs, however that’s had a chilly reception from the trade.

“It’s a pleasant soundbite,” mentioned Matthew. “How it could work in shops is complicated to me.”

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