Farming: The End Of Cheap Food

“The era of cheap food at any cost is over and I, for one, will not be missing it,” says Mr Kendall.

“We are witnessing a sea-change in world commodity markets and this should be reflected at the farm level – otherwise, it will be clear that the supply chain is not working properly. For too long farmgate prices have lagged behind rises in production costs and in the cost of living.”

Some sectors, like cereals and dairy, have experienced increases in recent months. However, Mr Kendall points out that farmgate prices are still lower than they were ten year ago. He would also like to see these increases affect other parts of the industry like the livestock sector.

He adds, “Food has never been cheaper, with consumers spending less than nine percent of their income on food compared with more than 22% just 40 years ago. Food price increases are both affordable and needed.

“A recovery of farmgate prices is good news not only for British farmers, but also for the rural economy as it means more resources becoming available for countryside management, more spending in the rural economy, more investment in farm infrastructure and fewer farming families being forced to leave the land. The fact that world commodity prices are reaching more sustainable levels is also good news for farmers in the developing world who will at last be able to realise their agricultural potential,” Mr Kendall concluded.