Rising costs could impact food production, Suffolk farmer warns
The Office for National Statistics has reported that food price inflation has remained elevated in recent years.
A Suffolk farmer has warned that rising costs across the agricultural sector could impact how food is produced, as pressure on farm finances continues to grow.
George Gittus, a farmer near Bury St Edmunds and National Farmers’ Union council representative for Suffolk, said increases in key inputs, including fuel, are placing a strain on margins.
He said agricultural diesel has risen sharply in recent weeks.
“Our fuel prices have gone in terms of agricultural diesel… it was 70 pence a litre before the Iran conflict was started and it currently sits at 120 pence a litre. So, a 70% increase by my maths, anyway.”
Fuel is a core cost for farms, used to power machinery for planting, maintaining and harvesting crops, meaning price rises can quickly feed into overall production costs.
According to industry analysts, fuel prices have increased alongside global oil costs, influenced by international tensions and changes in supply and demand.
Farmers are also facing wider pressures, with increased costs for fertiliser, energy and labour adding to financial strain across the sector.
Mr Gittus suggested these challenges are happening alongside ongoing disruption in supply chains.
“Our supply chains have got so fractured,” he said.
Industry groups have previously warned that sustained increases in input costs can affect how farms operate, including decisions around production, investment and pricing.
The Office for National Statistics has reported that food price inflation has remained elevated in recent years, reflecting higher costs across the supply chain from production through to retail.
Mr Gittus said farmers remain committed to maintaining standards despite the pressures.
“The majority of farmers… are out there trying to do their very best to produce high-quality food with a high standard,” he said.
He also highlighted the role of consumer behaviour, suggesting there can be a gap between expectations and purchasing decisions.
“Society does seem to say they want something… high welfare, high environmental standards… but when they're confronted with two options… they will choose the cheapest,” he said.
Mr Gittus encouraged people to think more carefully about how they buy and use food.
“Frozen veg invariably actually is remarkably good… tinned veg, anything like that,” he said.
“I think you've just got to sit down and stop and start to look at how you buy your food… challenge yourself to keep learning and buy and cook food and keep trying different things.”
Experts say the interaction between rising production costs and consumer demand will continue to shape the food sector in the months ahead.