Hertfordshire farmers warns of struggle, as oil prices surge amid Middle East conflict
The price of Brent crude climbed by to $101.59 at one point yesterday
A Hertfordshire farmer says soaring oil costs are putting huge pressure on the industry, adding to the growing challenges already faced.
Oil had been around $71 a barrel before conflict erupted in the Middle East, but prices have shot up since.
Yesterday, brent crude risen by more than 9% to $101.59 at one point, before easing to less than $99.50.
It is due to oil flows through the Strait of Hormuz, where 20 million barrels a day is typically produced, being heavily disrupted.
The new supreme leader of Iran vowed yesterday to keep blocking the key shipping channel - according to a statement read on state TV.
This is having a knock-on effect to farmers who are already seeing the price of two agricultural necessities increase, diesel and fertiliser.
Angus Mackay, a farmer near Hatfield, Hertfordshire, says “it's an extremely worrying time for farmers”.
He explained: “Things are quite tight in farming at the moment; there isn't much margin in what we're doing. So, any price increase is bad news.
“The diesel price increase is affecting us because we use probably 30,000 litres a year of diesel, so an extra pound on that is £30,000.
“It will reduce our ability to invest in our staff, invest in our machinery, all those sorts of things.”
Adding, “we get a diesel delivery once every couple of weeks, I need to get some more ordered for next week and that's going to cost me probably 50 pence a litre more than it did three weeks ago. So, we are already seeing those price increases”.
Mr Mackay also says “it feels like death by 1,000 cuts at the moment” due to the number of challenges facing the agricultural industry.
“I think like everyone else, and the rest of the economy, we would just like five years of stability”, he said.