Prices may rise

Food price increase because of wet weather

11-September-2008, By Becca Talbot becca.talbot@consumerchoices.co.uk

Industry experts have warned today that the price of food may rise again this autumn, because exceptionally wet weather is delaying this year’s harvest, according to the BBC.

Agricultural experts, and farmers, have said they fear the wet harvest will inevitably raise produce prices, however others maintain that, if the weather turns, the quantity and quality of the harvest may still be good.

Farmers have said they are behind on gathering in crops, and are using large amounts of fuel to dry them out so they can be stored. The growing season started well earlier this year, but torrential rain has meant the harvest has been delayed, and in some areas only a small percentage of crops have been gathered.

In an attempt to ease the situation for the farmers, the government has temporarily relaxed rules that prohibit the use of farming equipment on waterlogged soil to get to crops.

The price of fresh produce being sold in British supermarkets has risen by 8.3% since January, according to an index compiled for the BBC, released last week. The index produced showed meat and fish up 22.9%, while fresh fruit and vegetables up 14.7%.

Retail analysts Verdict Research also found price rises of nearly 50% for some individual food items.

In a statement, the National Farmers’ Union said: “Farming is suffering because of record rainfalls that have been recorded in the last few months.”

The NFU expects yields to decrease by as much as 10%, because some grains have already started to sprout.

“Fields have been flooded and it has been impossible, in some parts of the country, to access crops,” continues the NFU. “A poor harvest will impact on all sectors, not just grain, with a lack of fodder for animal feed, as well as having a knock-on effect in terms of planting for next year’s crop.

“For wheat and barley, in particular, the harvest is both difficult and expensive in terms of gathering and drying wet, sodden crops.”

Other experts say plentiful worldwide supplies should keep prices stable, but British economists are still worried about the impact this will have on the market for home-grown produce.

Farmers are usually barred from using machinery on waterlogged soil by rules aimed at protecting fertile land, but yesterday the Environment Secretary, Hilary Benn, lifted the restrictions until 4 October.

He said: “We need to do all we can to help the harvest and I hope this decision will go some way to assist farmers who have been most affected.”

Chris Eagle, commercial manager at CreditChoices.co.uk said: “The BBC index has shown that food prices have risen substantially since the start of the year. If they increase further, it may be more than just fuel poverty affecting Britain. The government needs to take action now, before it’s too late.”