NFU Scotland president Martin Kennedy has hit out at the government over the impact the cost of energy is having on the industry and warns the “penny hasn’t dropped” over the threat to food supplies.
The huge surge in the cost of electricity is affecting every individual and household but when it comes to the impact on businesses, particularly those required to deliver food security and guaranteed food supply, there must be greater government understanding of what these price increases will mean, said Mr Kennedy.
The NFUS chief urged immediate action on electricity prices warning that if nothing is done “we will be in serious short supply of home-grown produce”.
Unsustainable rise in energy costs
Mr Kennedy, writing in his NFUS blog, said: “Last week we were told of one Scottish vegetable grower who will see his current electricity tariff of around 12p per unit run out at the end of September.
“He was quoted 71p per unit for a new contract which meant his electricity bill for the year, primarily to cool and store his potatoes and vegetables, ensuring they could be supplied throughout the autumn and winter, would jump from around £140,000 to over £800,000, which is completely unsustainable.
“This price hike, on top of serious issues around the availability and cost of labour, other big input price increases and a supply chain where prices aren’t keeping pace with the cost of production, makes the decision really simple.
“Amid a food security crisis, he will just stop growing.
“This is very typical of many farms now making decisions on how to make ends meet, and these decisions all point to a significant contraction in supply of food to feed ourselves.
“Unless something is done to address this quickly, we will be in serious short supply of home-grown produce.”
Government must act
As well as key asks of government to deliver affordable electricity prices, Mr Kennedy said the NFUS will shortly be engaging with MPs and encouraging them to visit food and farming businesses to see for themselves the impact of soaring prices.
Mr Kennedy added: “It is up to the government to act on electricity prices now in the best interest of all our businesses – and ultimately all our consumers.
“Acting now on electricity prices for food and farm businesses will help with food price inflation and keep home-produced food on everyone’s plates.”
