The conflict in Middle East is likely to raise the cost of UK food within weeks, a union boss has warned.
Tom Bradshaw, president of National Farmers Union (NFU), said the entire food supply chain could be affected by the war, with the cost of some crops being grown within six weeks.
The increase in fuel and fertilizer costs are some of the effects of IranThe Strait of Hormuz blockade, which handles about 20 percent of the world’s natural gas.
Bradshaw warned that a prolonged conflict in the Middle East would have a ‘dramatic impact’ and turn the world’s supply chain ‘upside down’.
He said BBC Radio 4 that the price of tomatoes, peppers and cucumbers may increase next month, as those crops rely on greenhouse production.
The cost of other items such as milk and meat may increase within three to six months.
Wheat and barley farmers would be better protected as they buy their fertilizers in advance.
Ministers will call an emergency meeting to discuss the impact of the war on the cost of living.
The head of the NFU added that the government the need to take ‘seriously’ the threat to food production.
He said: ‘Amidst this volatile backdrop, it is more important than ever that the government keeps other inflationary pressures within its control to a minimum to protect the family.’
While retailers and farmers may bear some of the cost of rising fuel, some of the burden is likely to be passed on to consumers, the NFU warned.
The availability of some goods could also be hit by disruption to transport routes, the British Retail Consortium (BRC) said.
He added that retailers were working to mitigate the cost to consumers and were ‘adept’ at managing disruptions to supply chains.
Angela Eagle, the agriculture minister, said she was monitoring the impact of the conflict on the industry.
There have also been concerns about the cost of red oil, with the Competition and Markets Authority committed to monitoring its price.
A prolonged conflict could also threaten several other sectors, including travel.
Airline executives have warned that fares could rise if the war drags on much longer.
While most carriers have ‘hedged’ or locked in fuel costs for WINE months, passengers may feel the pinch beyond that time if the Strait of Hormuz remains blocked.
The UK is particularly vulnerable as it imports up to 90 per cent of its jet fuel.
EasyJet CEO Kenton Jarvis said that while there were no ‘immediate issues’, airlines were dependent on Gulf refineries.
The budget airline would not introduce a fuel surcharge, but passengers were likely to see a gradual increase linked to ‘supply and demand’.
He told the Independent Simon Calder: ‘My expectation is that prices will rise.
‘The industry has no choice. It is a low margin and highly competitive sector. We make around £7 per seat. If fuel goes up by £10 you have to respond.’
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