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Food prices likely to rise due to Iran war, farmers' union says
The National Farmers' Union has warned that food prices in the UK are likely to go up as a result of the conflict in the Middle East.
NFU President Tom Bradshaw told the BBC that the price of cucumbers and tomatoes could rise over the next six weeks, with the cost of other crops and milk increasing in the next three to six months.
Iran's continued blockade of the Strait of Hormuz has led to higher costs for fuel and fertiliser, both crucial elements of food production.
The issue is likely to be on the agenda when senior government ministers hold an emergency meeting to discuss the conflict's effect on the cost of living next week.
Bradshaw said the pressures "span the whole food supply chain" and are something the "government needs to take very seriously".
He told BBC Radio 4's Today programme that the effect of the conflict on food production "will turn the world supply upside down, and it will have a dramatic impact".
It is not yet clear what increases shoppers could face, as farmers sell produce to retailers such as supermarkets, which in turn set the prices for consumers.
The NFU said that while some of the extra costs might be absorbed by farmers and businesses within that chain, "some costs will inevitably be passed on to the consumer".
A significant portion of the world's natural gas, crude oil and fertiliser normally passes through the Strait of Hormuz, which has now been effectively closed for more than three weeks.
The NFU said that produce grown in glasshouses heated with natural gas, such as tomatoes, cucumbers and peppers, are likely to be quickly impacted by rising energy prices.
Livestock and dairy farmers could also be impacted soon as they generally buy fertiliser as and when it is needed.
Farmers growing arable crops such as wheat and barley could be better protected from the initial rise in fertiliser prices, as they generally buy in advance.
The British Retail Consortium (BRC) also said disruption to shipping routes may affect the availability and prices of some goods.
But it added that retailers and suppliers are "adept at managing this type of disruption" and "will work hard to minimise the impact on customers".
BRC director of food and sustainability Andrew Opie said sustained increases in the cost of energy could "directly impact" the price of goods.
"Amidst this volatile backdrop, it is more important than ever that government keeps other inflationary pressures within its control to a minimum to protect households," he added.
Bradshaw said: "For our glasshouse horticultural production, things like cucumbers, peppers tomatoes, it'll over the next month, six weeks that we see those cost increases coming through to the retailer.
And then for some of our field-scale produce and some of our crops and milk and things like that, it'll be the next three to six months that we start to see those prices coming through.
There are also fears about the rising price of red diesel, a fuel used in machinery and vehicles associated with farming.
Farming minister Angela Eagle said she was "monitoring the developments in the Middle East and the impacts for our food and farming sectors".
She added that she had raised concerns about the "price transparency" of red diesel with the Competition and Markets Authority, which has now committed to monitoring the sale of fuel.
Senior ministers will hold an meeting of the government's emergency committee, known as Cobra, next week to discuss how the war in the Middle East is impacting the cost of living.
Concerns about the rising price of food are likely to be discussed, along with petrol prices, household energy bills and interest rates.
Source: BBC
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