Prices of all foods in supermarkets could rise due to Russia’s invasion of Ukraine, with canned goods, cooking oils and imported foods likely to rise.
Photo: AFP via Getty Images)
Supermarket food prices may increase further due to Russia Invades UkraineExperts warn.
Canned goods and sunflower oil due to price increases, but all supermarket items may also increase due to higher gas and fertilizer prices.
Even before the war broke out, supermarket shoppers were warned to prepare for a year Grocery bills increase by around £180 as the cost of living crisis squeezes households.
But the Russian invasion Ukraine threatens to increase food bills further – even though we’ve only just seen the warning signs.
Market research firm Kantar said Food prices up 4.3% in Februarywith the fastest rising prices for savory snacks, fresh beef and cat food.
Wheat costs may increase
Ukraine and Russia together produce about 30 percent of the world’s wheat exports, according to the Agricultural Market Information System, the agency that oversees food security in the G20 countries.
Russia’s invasion of Ukraine risks disrupting supplies of these vital commodities.
According to government figures for 2021, the average Brit gets around 30% of their calories from grains like wheat.
Fortunately, the UK is “largely self-sufficient” in cereals, a government report said last year. We grow about 90% of the wheat we eat every year, so a shortage is unlikely.
But much of that growth depends on fertilizer, and the UK imports 40% of what we use – £735m in 2020 alone.
Fertilizer prices have been heading towards £1,000 a tonne, from £650 last week.
This is due to the high cost of gas, which is crucial to its production.
The National Farmers Association says the cost of nitrogen fertilizer has doubled from last year.
The increase in fertilizer costs for farmers may be passed on to consumers, which means higher purchase prices.
Svein Tore Holsether, head of Yara, Europe’s largest fertilizer producer, told BBC This week, war will increase global food supply and prices.
“For me, it’s not about whether we’re entering a global food crisis – but how big the crisis will be,” he said.
There is a possibility that the price of cooking oil may also increase.
Russia and Ukraine produce about 80% of the world’s sunflower oil.
The UK grows enough oilseeds for 80% of our needs, but has to import the rest.
The cost of these may increase this year – but not because of rising food prices.
The metals used to make canning are a problem, as the price of aluminum and nickel has increased by 30% by 2022.
Head of London Metals Trade Matthew Chamberlain tell Express As a result, the cost of canned food is likely to increase.
Increase the cost of other food
The UK produces most of the meat, eggs and dairy it consumes, but we still import about 46% of our food from abroad.
That includes 84% of fresh fruit and 56% of fresh vegetables – with the exception of potatoes, where we are 71% self-sufficient.
That food has to be shipped, and that transportation cost is also going up because of the price of oil.
The price of a barrel of oil has hit $139 (£105.8) yesterdaythe highest level in nearly 14 years.
Russia is the second largest crude oil producer in the world.
It supplies a third of Europe’s oil, raising concerns that supply could be constrained by the conflict with Ukraine.
Rising oil prices will increase the cost of growing and harvesting food, as well as transporting it to stores.
https://www.mirror.co.uk/money/four-ways-russias-war-ukraine-26417011 Four ways Russia's war with Ukraine could affect food prices in the UK