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Input inflation will impact UK food production
United Kingdom
Tuesday 26 April 2022
FJ
The increase in inputs (+27%) for the potato sector raises fears of a drop in national production and an increase in imports (Photo: fieldofdreamsfarm.co.uk).
In the United Kingdom, the high inflation of inputs is hitting all segments of British agriculture, and raising fears of a decline in food production.
Farmers Weekly revealed that data from the AF Buying Group (3,000 member farmers spending around GPB250m/USD317m annually on inputs) shows that farm inputs increased by 24% in the 6 months leading up to the end of March 2022. The largest increases were recorded for fuel (+29%) and fertilizers (+108%). This surge in costs mainly affected grain and oilseed producers, who recorded the highest increase (+28%) and potato producers (+27%).
This surge in agricultural costs is not taken into account by the distribution sector; the retail food price index only increased by 5.6% over the period.
According to British professionals, this discrepancy between production costs and prices paid will lead producers to reduce their production, which will then lead to an increase in imports to maintain the country's food supply.
source : fwi.co.uk
