...but farmers warn of food price hikes
SHOPPERS must brace themselves for a painful surge in food prices in the wake of Brexit, farmers’ leaders warned last night.
Food producers in the UK will face a savage fall in exports to Europe as a result of leaving the single market, they say, and charges to UK consumers will go up to make up the shortfall in income.
A staggering 60 per cent of British food exports are currently sold to the EU, and without these sales the industry could face ruin.
The situation could be further worsened post-Brexit by a shortfall in labour, as workers who have enjoyed freedom of movement across the EU and come to Britain would no longer be available to pick home-grown fruit and vegetables. This could lead to the closure of many farms. Minette Batters, Deputy President of the National Farmers’ Union, said: ‘Prices will have to go up to ensure farms stay in profit.
‘Many are already being paid below the cost of production prices and that is not sustainable.
‘We also have to pay the highest rates of pay in Europe for workers.
‘For fruit and vegetables in particular we are going to have to secure higher prices or we risk losing farms and will have to rely on imports.’
Farmers are also concerned that losing hand-outs given under the EU’s Common Agricultural Policy to support production will push prices even higher. And if new trading arrangements with EU countries involve higher export tariffs, that would add further expense. Many firms, for example, buy in cheap soft fruit from Eastern Europe and Turkey for use in jams,