Tensions in Russia and Ukraine have revealed a risk to the UK’s food supplies with soaring costs and post Brexit in-fighting helping to create a “perfect storm”, a farming chief has warned.
The two sparring countries provide 30 per cent of the world’s global wheat exports and a recent temporary block on fertiliser chemicals exported by Russia saw prices more than doubling.
Minette Batters, president of the National Farmers’ Union (NFU), said warning about UK food security had fallen on deaf ears for years, but now had to be taken seriously by the government.
“I cannot understand why you would not treat food security as importantly as defence,” she told The Independent. “The quickest way to create a serious issue [for a country] is if you have food shortages.”
Russia imposed a two-month block on exports of ammonium nitrate this month, Ms Batters said, a key tool for boosting yields from crops such as wheat and cotton.
The move has driven up global fertiliser costs which were already stoked by sanctions on Belaruskali, Belarus’s biggest potash supplier, imposed by the US, UK and others last year.
Belarus and Russia account for 38 per cent of the global supply of potash, according to figures compiled by the Canadian government.
Farmers’ profit margins have been decimated by the uptick in fertiliser prices, in addition to higher energy bills, labour costs and global supply chain disruptions.
Ms Batters said: “Last year I paid under £300 a tonne for nitrogen fertilizer, this year, it’s over £700 a tonne.
“[Russia and Ukraine] know exactly how much the world is reliant on them for natural gas and fertilizer.”
Ms Batters’ warning came as the World Bank and other multilateral agencies warned of rising global food prices and insecurity, with inflation for agricultural products rising by 25 per cent in January 2022, compared to the same month in 2021.
She said the problem were compounded by post-Brexit changes to trade and agricultural policy, which are threatening to put many farmers out of business: “Agriculture seems to be the pawn in trade deals. So I think it is a perfect storm.”
She said although there were “people in government who seem to get this”, such an understanding “doesn’t come from the prime minister”.
“All you hear is this rhetoric around putting land aside for nature, build back Beaver, this is a very frustrating adversarial approach between setting land aside and producing food,” she said. The result is that food production “just doesn’t seem to get cut though at the moment”.
The NFU’s intervention comes after Sir Geoffrey Clifton Brown, the conservative deputy chair of the public accounts committee warned last month that the Department for Environment, Food and Rural Affairs’ (Defra) new Environment Land Management schemes would “undermine” a “critical national sector” pushing farmers out of business.
“The recent energy price crisis should be a salutary warning of the potential risks to the availability and affordability of food if the UK becomes even more reliant on food imports,” Sir Geoffrey said.
The problem of food security has been laid bare during the Covid-19 pandemic. Several countries put up barriers to stop food exports as well as medical products, according to Simon Evenett, economics professor at Switzerlaversity of St Gallen, and author of the Global Trade Alert.
Costs are also rising for consumers, with Tesco warning that prices would rise at a rate of around 5 per cent in the coming months.
“At the moment, the consumer here is getting a better deal than anyone in the world unless you happen to be living in some states of the US or Singapore. We’ve got the most affordable food in European here right now,” she said.