A shortage in UK food and a steep hike in prices are set to throw the country into crisis in the coming years, according to London-based think-tank Chatham House.
A report out this week called Food Futures: Rethinking U.K. Strategy cited population growth, consumption habits, energy shortages, climate and labour changes as factors in the UK’s spiral towards food crisis.
Wheat and oil prices have recently fallen however the report suggests this will not sharply reduce the cost of food because the underlying fundamentals driving food prices higher have not changed.
The report highlighted the UK’s reliance on imports suggesting we could be vulnerable to global food shortages caused by poor harvests, energy crises or disease outbreaks.
Chatham House researchers suggested the government should invest more money in agricultural research, to reopen the debate over GM technology and to work with suppliers over long-term environment friendly deals.
The think-tank expressed concern that the resulting volatile prices which are already being seen in the market may put further pressure on the UK and EU markets. “If action is not taken, there is a real potential for demand growth to outstrip increases in global food production. The U.K. can no longer afford to take its food supply for granted,” said the report.
“The U.K. will continue to rely heavily on the EU for its food supplies and as a market for its food exports. Isolation is not an option and the U.K. will need to work closely with the EU to develop the right policy frameworks.”
Although the cost of some food items in supermarkets has fallen in recent months as retailers slash prices to attract consumers, overall food prices remain higher than they did a year ago.
Food and drink prices at supermarkets were 6.6 per cent higher in mid-January than they were in January 2008, according to mySupermarket.co.uk, a privately owned shopping comparison website.
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