Retailers must renew their support for UK food, FUW says

The FUW has urged retailers to support UK food production in light of the developing circumstances in Ukraine
The FUW has urged retailers to support UK food production in light of the developing circumstances in Ukraine

Retailers must renew their support for UK food given the impacts of the war in Ukraine on input costs, the Farmers' Union of Wales (FUW) has said.

The union has written to the UK’s major supermarkets as farmers continue to experience stark increases in food production costs.

Alongside possible shortages and unavailability of animal feed ingredients such as maize and sunflower meal, the AHDB has estimated there will be a 40% year-on-year increase in the price of feed concentrates.

Average red diesel prices have meanwhile increased by 75.4p per litre, or 50 percent, between 10 February and 10 March.

And fertiliser prices have more than tripled since last year, with some types of nitrogen based fertiliser reaching almost £1,000 a tonne.

In his letter, FUW President Glyn Roberts said: "It is becoming increasingly apparent that the real impacts of the war will not be felt in the UK for months as food production falls due to shortages and unaffordable input prices.

"Although UK farmgate milk prices have increased by around 20% over the past 12 months and deadweight lamb and beef prices continue to trend significantly above the 5 year averages, producers are needing to make important changes to their businesses with serious concerns for the coming winter and beyond when it comes to fodder availability."

Mr Roberts added: “Despite the annual UK inflation rate increasing to 6.2% and the cost of food in the UK increasing by 5% compared with 2021 levels, year on year supermarket red meat prices and dairy retail markets remain relatively unchanged."

The letter highlights that major retailers should play a vital role in ensuring that rising input costs do not threaten the long term viability of UK farmers, and that they are paid a fair price for their produce.

During times of uncertainty for agriculture, Mr Roberts urged them to continue to support farmers - and UK food security - by standing by their commitments to higher quality food produced domestically rather than poorer quality imports.

This warning follows the UK securing new post-Brexit trade deals with countries that have lower standards, such as Australia and New Zealand.

In the letter, Mr Roberts concluded: “We would also urge you to ensure that the farming industry has confidence that this support will continue into the future.

"Decisions made now that will impact yields and production later this year and into 2023 protect domestic production and UK food security.”