UK farmers face crisis as grain, energy and fertiliser supplies are hit as the war in Ukraine continues.
Energy
UK gas prices have risen 30% as events in Ukraine have unfolded, affecting farmers on many levels; fertiliser production and prices, energy prices, heating for livestock / glasshouses, processing, and distribution along with fuel prices hitting record levels.
Prolonged periods of high gas prices through 2022 will lead to inflated fertiliser costs continuing into 2023.
Fertiliser
Supply and price issues have been apparent since autumn, due to scaled back European nitrogen fertiliser production which has had implications for food grade C0².
Fertiliser price lists are being withdrawn, causing concern for those needed to buy nutrients for this coming growing season. Farmers are becoming reluctant to buy fertiliser because they don’t know if they will be able to recover their costs.
Carrots selling at 45p per a Kilo in some supermarkets, will not cover the cost of fertiliser that has had a fivefold increase.
Grain
Ukraine exports over 40 million tonnes of wheat into the global market, this is more than double what the UK can offer and will leave significant shortages globally.
The Ukrainian farmers will soon be due to plant their 2023 crop. Further conflict will clearly put a stop to this and issues with key growing inputs such as fertiliser won’t be helping.
What else can we expect?
There are forecasts of an upward spiral in food prices as farmers are either forced to cut back on production or buy fertiliser at record high prices.
All of Europe is in the same position, so when normally the UK would source supplies from Spain for fruit and veg, they too are facing the same cost issues.
Meat and Dairy will be hit especially hard as farmers are reluctant to purchase highly priced fertilisers to grow grass for their herds to eat. The alternative feed grains have supply issues of their own. Farmers will have to suffer and pay the high prices or cut back their herds, resulting in lower availability British meat.
Farming Labour issues will continue as some UK farmers are reliant on Ukrainian workers. We are already seeing issues of labour and staffing shortages prior to main vegetable production periods in the UK.
What can be done to help?
The NFU have put together some information to help support their members.
At Stripy Fig we are happy to provide advice and guidance in all areas of your farming business. We may not be able to solve the issues caused by the Ukraine conflict, but we can certainly help lessen the blow.
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