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Why are food prices
rising?
Basic economics:
if there is less of
something, the price
tends to increases.
Professor Tim Lang,
who developed the idea
of ‘food miles’ has called
this a POLYCRISIS: a
combination of many
individual crises.
What are these
individual factors?
Which are short-term
and which will be longer
term problems?
1. Climate change
• Caused unpredictable
weather including last
summer’s drought
• Affecting crop yields
around the world, leading
to food insecurity
• Increasing risk of plant
diseases in warmer
weather
2. War in Ukraine
• Increased price of
fertiliser
• Increased price of grain
and oils which are fed
to animals
• Increased price of oil
and gas
3. Last summer’s
drought
• Crop yields were lower
than usual
• Some crops damaged
by fire
• Grass was affected
meaning higher food
costs
4. Recent bad weather
in Africa and Spain
• Bad weather damaged
salad crops including
tomatoes, peppers and
cucumbers.
• Due to high energy
costs these are not
being grown in the UK.
5. Panic-buying
• When people start to
hear of shortages they
go out and buy more
than they need which
leads to shortages and
gaps on shelves –
rationing by shops
feeds this fear.
6. Increased wage
costs / strikes
• Workers are asking for
more money: this will add
to costs for retailers.
• Strikes by lorry drivers and
train drivers affected the
distribution of food and
also led to closures by
cafes which served
commuters and office
workers.
7. Some hangovers
from COVID19
• Increased demand for
cardboard due to rapid rise in
home deliveries of clothes,
books etc. as shops were
closed
• Global shipping affected
causing disruption to supply
chains
• Demand for resources around
sanitiser, masks, vaccines
etc. diverted from food
8. Brexit
• Workers who provided labour
on farms returned home
(many during COVID) and
were not tempted back by
contracts available.
• Food rotted in fields for lack
of workers
• Increased paperwork
increased the cost of
importing food from the EU
9. Avian Flu (HPAI /
H5N1)
• Millions of birds have been
culled due to bird flu
• Increased need for antibiotics
as a preventative measure (and
suggestions of a vaccine)
• Increased costs as free-range
flocks had to be kept indoors
and eggs sold as barn eggs.
10. Supermarket
culture
• Supermarket contracts lead
to a lack of flexibility and little
competition (which would
lower costs) e.g. lettuce
prices stay the same so no
incentive to produce more in
a shortage
• If UK doesn’t increase price,
then available stock goes to
the EU instead
• No government intervention
11. Energy & fuel
costs
• Increased costs of transport
• Increased costs of
refrigeration / lighting in
shops and distribution
centres.
• Increased costs for farmers
• Fertiliser manufacture is
energy-intensive.
12. Timing
• This is a period when there
are few crops ready for
harvesting in the UK and
we have lost the habit of
keeping food by means
such as pickling, preserving
etc. due to year-round
availability
13. Rural crime
• Cost-of-living problems
leads to thefts of food
crops from fields
• Farmers see increased
problems with crime when
people are desperate (also
thefts from supermarkets
rise).
14. Your
ideas here

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Why are food prices rising?

  • 1. Why are food prices rising?
  • 2. Basic economics: if there is less of something, the price tends to increases.
  • 3. Professor Tim Lang, who developed the idea of ‘food miles’ has called this a POLYCRISIS: a combination of many individual crises. What are these individual factors? Which are short-term and which will be longer term problems?
  • 4. 1. Climate change • Caused unpredictable weather including last summer’s drought • Affecting crop yields around the world, leading to food insecurity • Increasing risk of plant diseases in warmer weather
  • 5. 2. War in Ukraine • Increased price of fertiliser • Increased price of grain and oils which are fed to animals • Increased price of oil and gas
  • 6. 3. Last summer’s drought • Crop yields were lower than usual • Some crops damaged by fire • Grass was affected meaning higher food costs
  • 7. 4. Recent bad weather in Africa and Spain • Bad weather damaged salad crops including tomatoes, peppers and cucumbers. • Due to high energy costs these are not being grown in the UK.
  • 8. 5. Panic-buying • When people start to hear of shortages they go out and buy more than they need which leads to shortages and gaps on shelves – rationing by shops feeds this fear.
  • 9. 6. Increased wage costs / strikes • Workers are asking for more money: this will add to costs for retailers. • Strikes by lorry drivers and train drivers affected the distribution of food and also led to closures by cafes which served commuters and office workers.
  • 10. 7. Some hangovers from COVID19 • Increased demand for cardboard due to rapid rise in home deliveries of clothes, books etc. as shops were closed • Global shipping affected causing disruption to supply chains • Demand for resources around sanitiser, masks, vaccines etc. diverted from food
  • 11. 8. Brexit • Workers who provided labour on farms returned home (many during COVID) and were not tempted back by contracts available. • Food rotted in fields for lack of workers • Increased paperwork increased the cost of importing food from the EU
  • 12. 9. Avian Flu (HPAI / H5N1) • Millions of birds have been culled due to bird flu • Increased need for antibiotics as a preventative measure (and suggestions of a vaccine) • Increased costs as free-range flocks had to be kept indoors and eggs sold as barn eggs.
  • 13. 10. Supermarket culture • Supermarket contracts lead to a lack of flexibility and little competition (which would lower costs) e.g. lettuce prices stay the same so no incentive to produce more in a shortage • If UK doesn’t increase price, then available stock goes to the EU instead • No government intervention
  • 14. 11. Energy & fuel costs • Increased costs of transport • Increased costs of refrigeration / lighting in shops and distribution centres. • Increased costs for farmers • Fertiliser manufacture is energy-intensive.
  • 15. 12. Timing • This is a period when there are few crops ready for harvesting in the UK and we have lost the habit of keeping food by means such as pickling, preserving etc. due to year-round availability
  • 16. 13. Rural crime • Cost-of-living problems leads to thefts of food crops from fields • Farmers see increased problems with crime when people are desperate (also thefts from supermarkets rise).