Wet summer to cause food price increase
The price of food looks set to rise following the wettest summer in the UK for 100 years, a survey from the National Farmers’ Union says.
Farmers in England and Wales have reported to the union that wheat yields are 14.1 per cent lower than their five-year average, putting pressure on the price of a range of food items.
The impact of a damp UK harvest is compounded internationally by the worst drought in the US in 50 years and a heatwave in Russia, both of which hit earlier this year.
Guy Gagen, NFU chief combinable crops adviser, said: “The resulting tight supplies of many feed grains have driven up the prices of agricultural commodities around the world.
“These UK harvest results will do little to alleviate the global dynamics of commodity prices, with the prospect of relatively high commodity levels through to 2013.
“Cereals prices impact directly on other sectors, especially pig and poultry farmers who are already struggling with higher feed costs.”
Protecting customers
Richard Dodd of the British Retail Consortium said that wheat prices are up by around 29 per cent compared with a year ago, but added that the impact of this has not yet hit customers.
He said: “Our own figures for the shop price inflation for food show that it has been very, very stable – it has been 3.1 per cent for the last three months which is actually a two-year low.
“There is no food price explosion going on but there are pressures in the system that will work through. Our fiercely competitive retail market is protecting customers from the worst effects of these price pressures.”