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UK food production to shrink as input inflation hits 24%

Double-digit cost inflation is hitting every single enterprise of British agriculture, casting doubt on the sector’s ability to maintain food supplies in the year ahead.

As Philip Clarke reports for Farmers Weekly, latest figures from the AF buying group, which has more than 3,000 farmer members spending about £250m/year on inputs, show farming inputs increased by an “eye watering” 24% in the six months to the end of March 2022.

Four out of the nine categories of inputs saw double-digit inflation, with animal feed, fuel and fertiliser seeing the greatest increases at 27%, 29% and 108%, respectively.

The analysis also shows that no farming enterprise has been able to avoid the impact of soaring costs, with cereals and oilseed producers seeing the greatest increases at 28%, followed by potatoes, dairy, and beef and lamb producers – all hit by inflation of more than 20%.

AF chief executive David Horton-Fawkes said the Aginflation Index illustrated the crisis many farmers are facing, adding that the consequences would be felt across society.

Source: Farmers Weekly. Read the full story here
Photo: Courtesy and credit Tim Scrivener via Farmers Weekly

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