As food prices soar, everyday British farmers and consumers alike are experiencing hardships not seen before. Lewis Clare operates a family farm near Manchester that has been in his family for 250 years. He is truly on the front lines, making changes to an industry that is feeling the immediate effects of skyrocketing costs. Clare’s dynamic 160-acre farm operates mostly on the production of organic oats and a 40-pig, pastured pig operation. After the war in Ukraine broke supply chains, he had to completely remodel his business.
Clare breaks down how outside factors are driving up the cost of farming on ag ave. “The weather is going to be driving costs up,” he stated, highlighting that not only local weather patterns but extreme weather events around the globe have impacted crop yields and commodity prices. He stated that these increasing costs disproportionately impact consumers. Unfortunately, that means families often can’t make their budgets work.
Indeed, the latest inflation data indicate that prices of food and non-alcoholic drink have continued to increase, up 4.9% in the year to July. This jump represents the greatest yearly increase in food and beverage prices since February 2024. This scenario hits low-income families the hardest, as they are more likely to spend a higher share of their income on food costs. As a result, millions are experiencing the squeeze of increasing grocery store costs.
Take it from Jane Matthews, director of operations at The Ice Cream Farm in Cheshire. She told us that her small business regularly eats increasing expenses. These increases impact all sectors, from payroll to food distribution to energy. “You’ve got to make these decisions now so you can keep going. Otherwise, you might not be able to employ more people or close certain things during the year,” Matthews explained.
Now, due to shifted consumer habits, Matthews has noticed a rise in the popularity of picnics at her farm. “People might bring a basic picnic and supplement it with a bag of chips for the kids,” she said. This trend is a reflection of that huge change. More consumers are cutting back on their QSR and family-dining alternatives. Instead, they’re choosing bite-sized indulgences like coffee or candy bars.
The drought conditions in the UK have led to lower crop yields this year, compounding the challenges faced by farmers and businesses alike. Extreme weather across producing countries has contributed to rising wholesale prices for other key commodities, such as coffee beans and cocoa. Consequently, this increase is impacting nearly all of the products on the UK market.
Clare anticipates further increases in food prices, stating, “I hate to say I think it’s going to go up even more.” Even as it relates to the war in Ukraine or extreme weather, how farmers are the first to feel those impacts. What’s hard to see is how these challenges compound and build upon consumers over time. “Whether it’s some kind of extreme weather event or something dramatic like the war in Ukraine, the farmers are at the frontline, and then it sort of trickles down through to the consumer six to 18 months down the line,” Clare added.
With inflation soaring, families are making tough decisions and spending less. Many are buying the most expensive cuts of meat, resulting in soaring beef prices. Danni Hewson from Resolution thinktank noted that most people live within their means and have fixed expenses such as car payments and mortgages. People don’t spend money they don’t have, most people,” she continued. “This usually entails a car note, a large mortgage, or private school tuition, all of which determine the quality of life that they have come to expect and enjoy.