Farmers Warn Ukraine War Will Hit UK Food Prices

By Jennifer Meierhans

BBC business reporter

Image source, Getty Images

UK food prices will rise as a result of the war in Ukraine, the National Farmers' Union (NFU) has warned.

Some 30% of the world's wheat comes from Ukraine and Russia and exports will stop during the conflict, it says.

In addition, the price of gas - which is used to heat greenhouses and to make fertiliser - has soared.

The union has written to the government to call for urgent action to help UK farmers produce enough food to keep supermarkets stocked and affordable.

"The government must act now, with a clear signal that food security is a priority for the nation," the NFU said.

Its letter warned that disruption to food production, supply chains and the availability and affordability of food in the shops could last for years.

Earlier this week, the boss of one of the world's biggest fertiliser companies, Yara International, warned that the war in Ukraine would deliver a shock to the global supply and cost of food.

The Federation of Wholesale Distributors has also warned that the increase in fuel prices will lead to people paying more for food in shops and restaurants.

Image source, NFU

Image caption,

NFU president Minette Batters said the government must work with farmers to address food supply issues

NFU president Minette Batters told the BBC that the rising cost of producing fruit, vegetables and meat could cause farmers to make less at a time when the nation needs more.

"I think the whole world has got to recognise that this is not something we've faced before, we are going to see wheat price inflation levels that have never happened," she said.

"The real danger is that farmers contract, they decide not to invest, they hold back from planting, and we produce less food," she said.

Ms Batters said the shortage of crops would also affect meat production as farmers need it to feed their livestock.

The cost of producing a chicken was 50% higher than it was a year ago but farmers were absorbing much of these costs, she said.

UK feed wheat prices are already 39% up on March 2021 at £279.40 a tonne, according to the Agriculture and Horticulture Development Board (AHDB)

Russia and Ukraine produce 80% of the world's sunflower oil exports and 20% of corn exports, according to the United Nations' Food and Agriculture Organisation (FAO).

Another factor affecting food production in the UK is that Ukrainian workers have accounted for 60% of recruits under the UK's Seasonal Workers Scheme, the NFU said.

These workers carry out essential roles such as planting, picking, packing and grading fresh produce.

The NFU is asking the government to release an additional 10,000 visas under the Seasonal Workers Scheme, in addition to the 30,000 already granted.

Image caption,

Farmer Dan Wallis says he will be growing more wheat

Dan Wallis, who runs Rookery Farms in Newbury, Berkshire, said he decided this week to sow spring wheat on land that was not due to be planted on until next autumn.

"Given the current crisis in Ukraine the demand for food is ever increasing," he told the BBC.

"There's going to be a shortage of wheat and barley, predominantly wheat, so today we are planting spring wheat into some fallow land which should have remained fallow until next autumn.

"I made the decision in the last week or 10 days - it's the right thing to do."

Media caption,

Watch: Ros Atkins on why the war in Ukraine is pushing up food prices - and the likely impact on poorer countries

The Environment Secretary, George Eustice, told MPs that in early January he had set up teams to make contingency plans for the UK's food security.

He told the House of Commons that he would attend a special meeting of the G7 group of the world's largest economies to discuss the issues further on Friday.

Commons Leader Mark Spencer said the Department for Environment, Food and Rural Affairs (Defra) was "across the threats that we face".

"There is no prospect of food shortages at any point in the future, and Defra are working with Treasury to try and make sure that that continues to be the case," he said.

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