Rising food prices are poised to hit households harder than anyone predicted. A new forecast warns that food inflation could surge past 9% before the year is over, adding £200 to the average family's grocery bill.
Karen Betts, CEO of the Food and Drink Federation, doesn't mince words. "If the conflict in the Middle East doesn't resolve soon, prices could climb even higher," she warns, pointing to energy costs embedded in every link of the food supply chain.
Energy isn't just about running factories—it's about moving food, packaging it, cleaning equipment, and even producing plastics. And here's the kicker: electricity prices for most businesses are about to explode when their contracts renew in the coming months.
The FDF is pleading with the government to step in before it's too late. They want support for the most energy-intensive parts of the food system, like sugar refining, bread baking, coffee roasting, and dairy processing.
Betts also demands a pause on costly new regulations—good ideas in theory, but devastating for businesses right now. She's talking about aligning food laws with the EU and restricting what counts as "less healthy" for ads.
"We've been giving the government ideas since March and haven't heard back," Betts says, frustration creeping into her voice. The real fear? That rising costs become "baked in" to prices, making it nearly impossible to reverse them later.
Farmers are facing their own emergency. NFU president Tom Bradshaw reveals an "immediate cash flow impact" from soaring fertiliser, red diesel, and gas prices—costs that will inevitably hit your dinner table.
Red diesel for farm vehicles has jumped from 76p to 104p per litre in a year. Meanwhile, fertiliser costs could spike 70% because of the Strait of Hormuz closure.
"It's now 69 days since this crisis started," Bradshaw warns. "Even an immediate resolution will have knock-on effects well into the future." He's urging the chancellor to reverse a planned 5p fuel duty hike in September.
The NFU also targets a carbon levy set for 2027 that could add £50 to £70 per tonne of fertiliser. They're asking for a 12-month delay—a move they say would support not just farmers but "the whole of society."
Bradshaw makes a simple plea: "It's crucial for farmers to continue producing the country's food for everybody." The clock is ticking, and the government has yet to respond.
