Rising food prices are a double edged sword – it’s incredibly difficult for a lot of UK families but struggling food producers have families too

It’s no secret that the cost of living is soaring for families across the UK, with major UK supermarkets including Tesco predicting further food price rises of up to 5% by the Spring. The stats seem jarring,  but for many UK food producers and farmers, years of competitive supermarket pricing and the effects of Brexit have meant that financial hardship is nothing new, says food industry expert and Managing Director of ethical online food retailer Hannah Anderson. 

“The Government estimates that approximately 5 million people in the UK lived in food poverty between 2019 and 2020. There’s no getting away from the fact that these stats are utterly shocking and something that we shouldn’t be seeing in modern day Britain.

“We’re already seeing food prices rising dramatically in supermarkets, but from a producers’ point of view supermarket price wars have meant that for many years, there has been a growing gap between the price we pay for our food and what it actually costs to produce it. 

“Farmers producing meat and dairy have faced significant losses in recent years – milk producers for instance are estimated to have seen profits fall by 50%. Stats suggest that dairy farmers are paid about 18p per litre of milk, despite it costing 21p per litre to produce. When you then consider that you can buy just under 2 litres of milk for 60p in a mid range UK supermarket, it’s clear to see the kinds of profits that supermarkets are making while farmers can barely cover their own costs. The same goes for meats – paying £3 for a whole chicken doesn’t come close to covering the costs to actually produce it.

“The problem we’re now faced with is the fact that, through no fault of their own, consumers have become used to paying prices for their food that simply doesn’t reflect its actual worth. The prices we’re now seeing on our supermarket shelves are reflective of the rising cost of food production and as these are now at a level which makes it impossible for supermarkets to absorb, and with other monthly bills skyrocketing, it’s hitting consumer pockets hard.

“The sad reality is that as sudden as these price rises are, for farmers and their families – some of whom are themselves on the precipice of financial collapse – these rises are the only way to ensure not only the survival of their individual businesses, but to ensure we can keep British produce on our shelves. For every business that collapses, you also have employees out of work who, again, suffer the knock on effects. 

“At 44 Foods, we believe that the fairest, most ethical business model is to allow our producers to set their own prices. That means that every item we sell is sold at a price that accurately reflects the time, work and ultimately the costs that go into producing it. Our prices have also risen to take into account rising production costs, but unlike many supermarkets, we’re transparent with our customers, explaining the reasoning behind this as and when we have to put changes into place.

“We already charge what we believe is a fair price so any further price rises for us will be to ensure that our producers are paid what they deserve, unlike supermarket rises which are designed to protect the huge margins that supermarkets operate within.  

“We know that we that aren’t affordable for everyone and while we don’t aim to exclude consumers from being able to access our products, for those who are able to afford it we do offer an option that we feel is as ethical as it possibly can be and protects the livelihoods of our producers. 

“It really is a double edged sword – it’s absolutely not right that we’re seeing so many families struggling but it’s important to remember that producers and their employees who have been struggling for many years, have families to feed too.”