Middle East war: NFU warns of food price inflation
The National Farmers’ Union has raised concerns that the Middle East war pushing up prices in global supply chains could impact food inflation in the UK.
The fall out from the US and Israel’s strikes on Iran has caused economic consequences around the world, as oil prices have spiked.
This has seen petrol prices at forecourts increasing significantly, mortgage rates getting pulled and fears inflation could rise again this year.
In a meeting with the Environment Secretary Emma Reynolds and Farming Minister Dame Angela Eagle on Wednesday, NFU President Tom Bradshaw raised concerns about the impact of the global oil and gas markets on the price of fuel and fertiliser.
These are key inputs for farmers in spring planting, boosting crop growth and forage production for livestock.
Mr Bradshaw said: “The Secretary of State recognised that volatility in the global energy market has a huge impact on our food supply chains here and they are watching this very closely.
“It’s clear that transparency and fairness over fuel and fertiliser prices is critical, and we’ve been asking for this for a long time, regardless of market volatility.
“It’s particularly urgent as farmers and growers are busy getting crops in the ground and boosting grass growth ahead of spring grazing.
“Some farmers are only being made aware of the price they will pay once products have been delivered onto farm, making it difficult to decline or challenge the price. This limits their ability to make informed decisions and erodes trust.
“While the impact on food production and food price inflation will depend on what happens over the coming weeks, it is yet another sobering reminder of the need to build resilience in UK farming.
“We have to build our ability to withstand global shocks so we can continue to produce food for the 70 million consumers of the UK, and the Secretary of State recognised that.”
The Government said it is actively monitoring the potential impact of the Middle East conflict on agricultural supply chains, although the region is not a major source of food imports for the UK.
A spokesperson said: “We understand and are taking seriously the possible impacts of the Iran war on the food and farming sector.
“We have met with the NFU and are convening wider farming stakeholders to continue to gather information on the effects of the conflict on the industry.
“At present, we do not expect any impact on food availability for consumers and continue to monitor increases in fertiliser and oil prices, standing ready to take action to protect rural communities.”
It comes as Chancellor Rachel Reeves and Energy Secretary Ed Miliband are set to meet fuel bosses in Downing Street today and deliver a message that drivers must get a fair deal at the pump.
Ms Reeves has asked Competition and Markets Authority to crack down on fuel rip offs, with the regulator asking petrol stations to supply revenue, costs and sales data.
The Chancellor said: “I will not tolerate any company exploiting the current situation to make excess profits at consumers’ expense. I’m backing drivers and families — and I expect a fair deal at the pump.”