Rising costs linked to higher gas prices mean greater risks and could lead to lower production
British food producers are facing surging prices for fertiliser, animal feed and CO, which is used in packaging and the slaughter of livestock, as war in Ukraine disrupts exports from Russia and ramps up production costs.surge in the price of gas
Matt Culley, a Hampshire wheat and oilseed farmer who is head of the crops board at the National Farmers’ Union, said the new surge in fertiliser prices was adding to pressure on farmers already hit by rising labour, fuel and feed costs. “We’ve been suffering agricultural inflation,” he said. While the UK produces about 40% of its own fertiliser, there are fears that plants may shut down operations as gas prices soar. That would also put a squeeze on the production of COYara, one of the world’s biggest producers of fertiliser, which operates in 50 countries including the UK, has said it is making day-to-day evaluations on how to maintain supply and that it is too early to say if more shutdowns may be on the cards.