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 CO2, which is used in packaging and the slaughter of livestock, as war in Ukraine disrupts exports from Russia and ramps up production costs.
Fertiliser prices are surging towards £1,000 a tonne, up from about £650 last week, linked to a surge in the price of gas – key to the production process – and panic-buying by farmers fearing the price will rise further in the coming weeks. The NFU said prices for nitrogen fertiliser were already up 200% year on year.
