Food prices expected to rise as pickers flee
Shortage of labour could hit consumers as experts across Europe urge those out of work to help farmers
FOOD prices across the world will come under pressure because of massive shortages of seasonal labour, politicians and experts have warned.
Farmers in the UK have started to raise concerns about some of their workforce returning to their home countries, typically on the Continent, in the wake of the outbreak. This means there will be fewer people to pick fruit and vegetables.
Didier Guillaume, France’s agriculture minister, issued a plea yesterday for people out of work due to coronavirus to “take to the fields” to help beleaguered farmers.
Mr Guillaume told BFM television that “there are 200,000 jobs possible across the agriculture sector”. In large part this is because seasonal workers who usually come from Spain or eastern Europe can no longer enter the country due to border closures.
Farmers say the need for workers is urgent as the first harvests loom for asparagus, strawberries and other earlyseason produce.
“I’m issuing a call to the women and men who are not working, who are confined to their homes, the waiter, the hotel receptionist, the barber in my neighbourhood, whose businesses are closed … and I ask them to join France’s great agricultural army,” he said.
The minister insisted the workers would enjoy proper full-time contracts.
Echoing these remarks, Clive Black, a retail analyst at broker Shore Capital, said: “We import 40 per cent of our food. That could be inflationary if [the pound] goes down. And if crops are rotting in the field you could expect prices to go up with less production to go around.”
He said, however, supermarkets would be reluctant to pass the price rises on to consumers while they are under the spotlight of the competition watchdog which has relaxed the rules because of coronavirus.
The CBI’S latest survey – although completed 10 days ago – showed expectations of rising output costs across all manufacturing sectors, including food.
Rain Newton-smith, the business lobby group’s chief economist, said: “In terms of food prices, the one thing I think is starting to emerge as a concern coming down the track is what happens with agriculture, in the UK but also globally.
“There is a real challenge if, as the crops come on stream, there aren’t the people that can go and pick the crops. How do you get people to do these roles and how do you make sure, if we’re still in social distancing, that they are not getting too close to each other?”
She added: “There’s real pressure on supply so there is certainly some concern.”
Howard Archer, senior economic adviser at economic forecasting group EY ITEM Club, added: “I think inflation will go very low over the summer but one part of inflation which is likely to be stickier than others is food.
“This is one area where sterling weakness could be pushing up food prices.
“Demand for food is likely to hold up well over the next few months as opposed to demand for everything else, which will go through the floor.
“I think sterling prices will have some impact, but the lower price of oil will lower distribution costs.”
Separately, Marks & Spencer was the latest retailer to say it will shut 31 stores, but only those which are selling clothes and homeware.
Staff have been moved to its Simply Food and Food Halls sites to help with the high numbers of shoppers buying groceries.
A few major supermarkets announced more stringent measures to protect their staff and customers.
M&S, Sainsbury’s, Waitrose and Asda are all limiting the number of people who can enter a store at any one time, to comply with social distancing rules.
They have been adding markers on the floor and barriers in store to help customers keep their distance.
Morrisons has already put screens in place to protect staff from infected droplets.
Waitrose said protective visors were being ordered and will be available to staff if they wish. Staff at Sainsbury’s will also be given plastic screens at tills for protection.