Fruit growers in the United Kingdom report rising production costs linked to the conflict in Iran, with impacts on fuel, fertiliser, and transport during the planting season. Ali Capper, representing British apple and pear growers, said the effects are already reflected in current operations. "Sadly, even if it all ends tomorrow, the costs are baked in now."
Data from the Andersons Centre indicates that farm input inflation was more than 7 per cent higher in March compared to the same period last year. The organisation warns of continued pressure on production costs across the agricultural sector.
On-farm costs have increased across multiple inputs. Capper reports fertiliser costs rising by 40 per cent, red diesel by 100 per cent, and transport costs by around 20 per cent. A large share of global fertiliser trade passes through the Strait of Hormuz, which has been disrupted, contributing to higher prices. Fuel costs have also increased in line with global oil price movements.
The Food and Drink Federation expects UK food inflation to reach at least 9 per cent before year-end. Capper also anticipates higher costs for plant protection products and packaging. "We will have to pass this on," she said.
The apple and pear sector has already experienced a 30 per cent increase in production costs across 2022 and 2023. "It was really brutal and, I have to say, when I woke up to the news that it had started again, in Iran, I did feel quite sick," Capper said.
Arable growers report similar trends. Potato grower Ben Savidge said red diesel costs have increased from around £0.65 to £0.70 per litre in December to between £0.96 and £1.05 per litre more recently, equivalent to approximately US$0.82 to US$0.89 per litre, rising to US$1.21 to US$1.32 per litre. He estimates planting costs could rise by around £5 (US$6.30) per ton.
Fuel purchasing group AF Group reports similar increases, with prices rising from around £0.70 (US$0.89) per litre before the conflict to approximately £1.30 (US$1.64) per litre. Patrick Crehan said some growers are reconsidering planting decisions due to input costs.
"We have had some examples where they would rather not plant the crop and save the money, because they know it's going to be so expensive to put the crop in and manage it over the course of this year," he said.
Farmers continue to plant despite reduced margins. "I would describe it as busy, and difficult, and testing the level of increases that we're witnessing, we just haven't seen them before," Crehan said.
Source: BBC
