Food Prices Look Set To Rise after Poor UK Harvests Due To Recent Wet Weather | Get Financial Freedom Tips


Tuesday, November 20, 2012

Food Prices Look Set To Rise after Poor UK Harvests Due To Recent Wet Weather

There have been some global weather occurrences this year that have in turn made many food sources more expensive to the UK consumer. There was the worst drought for 50 years and the USA and a massive heat wave in Russia that have driven up the price of grain and now, with the wettest summer in a century, The British Retail Consortium said that productivity in the UK is now back down to the levels it was in the 1980s.

The national average showed that wheat yields alone were down by around 14% but some places were worse hit than others and the more western farmers bore the brunt of the wet weather.

Peter Kendall, President at the NFU (National Farmers Union) explained that: "There are many farmers who are down 25 to 30% on the wheat crop.

Food Prices Look Set To Rise after Poor UK Harvests Due To Recent Wet Weather

"In some cases you looked from the outside and you thought, this crop will do over four tonnes to the acre - and it's been struggling to do three and some cases two tonnes to the acre.

"It's been soul destroying for the farmers growing the crops”.

In the world of economics, supply and demand are rules that cannot be broken and although retailers seem to be striving to keep costs down for the consumer, something will eventually have to give.

The businesses that will feeling the strain the most are local grocers and family run food suppliers. The big supermarkets have the freedom to cross monetise different aspects of their businesses as they sell more than just basic food items. SMEs (Small and Medium Enterprises) on the other hand, don’t have this luxury and already have trouble keeping their customers loyal.

These smaller businesses may have to find an alternative area of business in which they can save extra money. Cheaper business electricity from Make It Cheaper could be a good place to start. If SMEs focus on the overheads other than the price of produce, they may be able to make some savings. also give expert advice on other business costs, from insurance and telecommunications to chip and pin prices and other business rates. The information is of expert standard and some small or independent businesses could really do well and make it through the produce price rise by taking their advice. 

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