Potato Prices Set to Rise Due to Middle East Conflict
A farmer has warned that it is "inevitable" that the cost of potatoes in shops will increase as producers struggle to manage the effects of the conflict in the Middle East.
Paul Brown, a potato farmer near Eccleshall, Staffordshire, stated that the cost to acquire new supplies has risen by up to 40%, raising concerns about forthcoming yields.
Iran's ongoing blockade of the Strait of Hormuz has caused fuel and fertiliser prices to escalate, both of which are essential for food production.
"We've taken a lot of hits over the last two or three years and we simply can't absorb many more of these [financial] hits," Brown told BBC Radio Stoke.
A significant volume of the world's natural gas, crude oil, and fertiliser typically transits through the Strait of Hormuz, which has been effectively closed for over three weeks.
The United Nations reports that approximately one-third of global fertilisers—including urea, potash, ammonia, and phosphates—normally pass through the Hormuz Strait.
The National Farmers Union (NFU) president, Tom Bradshaw, informed the BBC that prices for cucumbers and tomatoes could increase within the next six weeks, with other crops and milk prices expected to rise within three to six months.
Brown, who also represents the NFU in Staffordshire, added:
"I am short of supply for the whole of the season, so I am definitely going to have to buy some in at inflated prices and we're seeing quotes of 30% to 40% increase if not more.
Farmers have been under pressure for several seasons now with very variable weather.
We've seen increases in things like National Insurance for employees and despite some concessions by the Government, there are still quite a large amount of farmers who are going to be impacted by the impending inheritance tax increase.
The implication is some farmers are going to think about what they're producing, how much and whether they're going to cut back, because we can't keep effectively borrowing money to pump into food crops just to lose money."
It remains unclear what price increases consumers may face, as farmers sell produce to retailers such as supermarkets, which then determine consumer prices.
Farming minister Angela Eagle stated she was "monitoring the developments in the Middle East and the impacts for our food and farming sectors."
Food Inflation Concerns
Charles Goadby, a farmer near Nuneaton in Warwickshire, told the BBC Politics Midlands programme that he purchased fertiliser at £325 per tonne last June but paid £480 last week.
He noted that prices have risen further since then, reaching approximately £540 per tonne, if fertiliser is even available.
Goadby explained that a third of farmers did not make a profit last year, forcing difficult decisions.
"Do we cut back on fertiliser and cut back on yield potential?" he asked.
With farmers scheduled to fertilise crops at this time of year, he said, "it couldn't have happened at a worse time for us."
Goadby believes food prices will eventually rise as a result, with the poorest in society being the most affected.
Dr Alison Gardener, Labour MP for Stoke-on-Trent South, expressed that fuel price increases are a "real concern" for the government.
She mentioned that the government is considering regulation to prevent profiteering and reduce EU tariffs.
"If anything, this conflict has shown us that we have to get control of our sovereign energy and really focus in on renewables, so that we are not at the whim of these fossil fuel wars."
Helen Morgan, Liberal Democrat MP for North Shropshire, stated that food inflation is unavoidable.
"There's no way you can ask farmers to absorb those additional costs, because they're not making any money really in the first place," she said.
She also said: "The war was reckless, it was illegal, we should be putting a lot of pressure on Donald Trump to end it before we see even more economic chaos."
Jo Barker, a Conservative councillor on Warwickshire County Council, suggested that the government should "remove the extra duties and taxes at the moment."
She added that this measure would provide "meaningful amounts of money" for farmers.
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