Oct 11, 2012 03:03 AM EDT
Rain Plays Havoc in UK Farms, Food Prices to Rise

While crops in the U.S are withering under dry conditions, those in the UK are straining to mature in wet and soggy conditions.

According to the National Farmers' Union (NFU) survey, the output of wheat has gone down by 14.1 percent. Though area planting is up, the yield has declined per hectare from 7.8 to 6.7 tonnes.

"...we have seen a relatively low wheat yield this year, below seven tonnes per hectare. This is something not seen in the UK since the late 1980s. The abnormally high rainfall across the UK since early summer this year has depressed wheat yield," Guy Gagen, chief combinable adviser at NFU, said.

However, the yield of winter barley is up by 1.6 percent on a five-year average and is likely to increase further. The production of rapeseed oil too has risen by 25.5 percent following an increase in the output by 5.9 percent.  

The drop in the yield of wheat follows a global rise in the price of several food staples, including wheat, soy and corn. Poor weather conditions in the grain growing regions of the Midwestern U.S. and the Black Sea grain region that includes Russia and Ukraine are the leading factors behind the price rise.

"These UK harvest results will do little to alleviate the global dynamics of commodity prices, with the prospect of relatively high commodity levels through to 2013," Gagen added.

He further said that the effect of wet weather on wheat output is indicative of a continuing need for investments in the agriculture sector.

Shoppers will notice a rise in the price of not only bread and other food products containing wheat, but also that of corn, meat and dairy products. The poor weather and skyrocketing prices of soy and corn have resulted in high prices for animal feed. Consequently, farmers are facing difficulty in feeding their poultry and cattle.

"Feed is the single biggest cost to poultry producers and many are reporting to me the significant outlay they are having to make to purchase feed compared to last year. It's now really vital that the whole UK supply chain works together to ensure these additional costs farmers are facing are recognized or else we see a risk of critical mass in domestic production eroding," said Tom Hind, NFU Director of Corporate Affairs.

Several farms, including Nyetimber's award-winning vineyards, are letting their crops wither under torrential rains.

According to the Financial Times, supermarkets may begin stocking their shelves with "ugly" vegetables or those produce which do not meet the standards appearance-wise. 

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