Summary
The conflict in Iran has increased costs for UK farmers, especially in fuel and fertiliser, leading to higher food prices. Even with a ceasefire, the costs are already impacting the farming sector. Farmers face difficulty in absorbing these costs and must pass them on to consumers.
Key Facts
- War in Iran has led to increased costs for UK farmers, affecting prices of fuel and fertiliser.
- Fertiliser costs have increased by 40%, and red diesel costs have doubled.
- The Strait of Hormuz, a key passage for global fertiliser, has been blocked, contributing to price rises.
- Inflation of farm costs in March is over 7% higher compared to last year.
- The Food and Drink Federation expects UK food inflation to reach at least 9% before the year ends.
- Farmers report they cannot absorb these costs, likely leading to higher food prices for consumers.
- Previous increases in farming costs occurred due to the Ukraine-Russia conflict.
