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Agricultural Production Costs Increase 27% YoY in UK

1 Minute(s) Reading
Wednesday, November 30, 2022
News from World
Cultivation
United Kingdom
Summary
Rising costs and continued labor shortages worry UK farmers for their future.
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According to the report of the National Farmer's Union (NFU), energy prices increased by 165%, fertilizers by 40% and labor costs by 13%. This increase was reflected in the production costs of farmers as 27% in the last 12 months.

Producers requiring high energy costs such as tomatoes, broccoli, apples and root vegetables were most affected by these cost increases.

The report also warns that despite record inflation and rising end-user food prices, farmers are still not making the necessary profits to run their businesses.

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After the end of the 6-month fixed price in energy set by the British government, farmers are preparing for future energy price increases and the situation that will worsen.

Martin Emmett, chairman of the national farmer's association horticulture and potatoes, said the fruit and vegetable sector is in recession. According to Emmet; The continued shortage of both permanent and seasonal workforces, combined with the sharp rise in energy costs, has brought many businesses, especially greenhouses, to the brink of closure.

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Emmet also warned that it would be pointless for some agricultural enterprises to continue to work in the face of constant problems, and said that retailers used tactics to reduce prices in their negotiations with farmers.

Emmet; He pointed out that in addition to sustainable purchase prices to protect the future of UK fruit and vegetables, the government's commitment to lift the cap on seasonal workers and an increase in the number of visas available to meet the industry's needs are also necessary.