Rising food prices are inevitable, as the war in Ukraine affects production costs. The Russian invasion has driven up the price of fertilizer, animal feed and fuel, which has affected production and should be passed on to consumers.
Sky News reports this.
Michael Oakes, owner of a dairy farm and head of the Dairy Council of the National Farmers Union of Great Britain, said it is unlikely that anyone of his generation has ever seen something like this.
According to him, the cost of fertilizer and feed for animals has almost doubled since the beginning of the war. Last week, he had to send some of his dairy cows to slaughter to pay for rising costs.
— I think there is a real concern in the UK about food security. The amount of food and choice, as well as the price of food and availability, will be a big issue,” he said.
Wheat and fuel costs also crept up. Although prices have risen in recent years — Brexit first.
Oakes says the rise in prices since the start of the war in Ukraine now poses a real threat to the future of his business. For example, in January 2021, a ton of fertilizer was paid just under 300 pounds, and before the war this amount increased to 600 pounds.
The price increase is associated with interruptions in supplies from Russia and Ukraine. Both countries provide about 30% of world wheat exports.
Diesel prices have also risen.
In the UK, the average cost of milk production has risen to 40p per litre.
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— We need to be sure that the price of milk will rise, otherwise farmers will reduce production, and many farmers will leave the dairy farm for purely economic reasons, says Oaks.
Tom Holder from The British Retail Consortium has confirmed that supermarkets will have to increase the cost of some items.
