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surging energy prices leave British glasshouses empty -Breaking

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© Reuters. FILEPHOTO: A vacant greenhouse is visible in the photo of Tony Montalbano (cucumber grower), as he didn’t plant January in response to rising costs of natural gas. This was taken at Green Acre Salads. Roydon, Britain. March 22, 2022. REUTERS/Matthew Childs

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James Davey

ROYDON (England) – A few small corners of South-East England have large glasshouses that are empty. The high cost of heat is keeping their owners from growing cucumbers in the British market.

A few other places in the country, growers also have failed to plant tomatoes, aubergines, and peppers after an increase in prices in late 2013. This was made worse by Russia’s invasion in Ukraine. The crops are now economically ineligible.

One of many ways that the invasion and energy crisis have impacted food supply around the globe is through the impact on UK farmers, who need gas in order to withstand the adverse weather. Global grain production, as well as edible oils, are also at risk.

It is possible that it will push British food prices up during a period of historical inflation and affect the availability of products such as the British-style cucumber sandwich, which was served at Wimbledon and in big London hotels.

It cost 25pence to make a cucumber last year in Britain. This has doubled this year and will reach 70pence when energy costs rise fully, British Growers states.

On Tuesday, regular-sized cucumbers sold for just 43 pence in Britain’s largest supermarket chains.

Tony Montalbano, a grower, said to Reuters that gas prices are so high it is a worrying time. He was standing outside Roydon, in the Lea Valley, where three generations have been growing cucumbers for over 54 years.

He said, “All those years of hard work to get there. And then it could all just end.”

All 30.000 square meters of Green Acre Salads’ glasshouse are empty. This business supplies major supermarkets including Tesco (OTC), Sainsbury’s and Morrisons.

Montalbano’s grandfather, who immigrated to Sicily from 1968, started a nursery for fresh cucumbers. However, Montalbano decided not to plant the second of three years in January.

SOARING FEES

He paid between 40-50 pence per therm last year for natural gas. It was last week at 2.25 pounds per therm. This is after it briefly reached a new record of 8 pounds following the invasion by Russia.

Prices for fertilisers have tripled over last year. Meanwhile, carbon dioxide costs – which are used to grow and as packaging materials – have risen and so has the price of hard-to-attain labor.

Jack Ward, British Growers’ head, stated that “we are in an unprecedented position where the costs have greatly outstripped any grower’s ability to make anything about it.”

It will cause a huge contraction in the industry and threaten Britain’s future food security. This could also lead to more price rises for UK residents already experiencing a greater inflation rate than any other country after Brexit.

The UK’s inflation reached 6.2% in February for the first time in 30 years. In late 2022 it is predicted to reach 9%, which will lead to the greatest drop in living standards since the 1950s.

According to the National Farmers Union, Britain is slipping into food insecurity. According to the National Farmers Union, UK pepper production could drop to 100 million in 2017 and 50 million next year. Meanwhile, cucumber production is expected to fall to just 35 million from 80 million.

The UK imports around 90% of its crops in winter. However, it is almost self-sufficient during summer.

Lea Valley Growers Association members are responsible for producing about three-quarters Britain’s sweet pepper and cucumber crops.

Lee Stiles, association secretary said there would be “definitely going to be a shortage of British produce at the supermarkets.” It all depends on the distance and source of produce that retailers will be able to find it.

British salad growers are dependent on the Netherlands for their supply. They face similar difficulties and exports have been reduced.

Spain and Morocco don’t heat their glasshouses very much, however chilled lorries can be delivered to the UK. This adds both time and costs.

Joe Shepherdson, UK’s Cucumber Growers Association stated that growers who have already planted use less heat but this reduces yield and raises the chance of getting sick.

PRECAUTIONS ON PRICES

Britain’s biggest supermarket groups, including Tesco, Sainsbury’s, Asda and Marks & Spencer (OTC:), acknowledge the pressures in the market but say they are confident about supply, stressing their long-term partnerships with growers.

How much the rise in production costs will impact the price of food on shelves depends on whether supermarkets choose to absorb or to pass the cost on to the consumers.

Sometimes, smaller retailers who buy directly from the market might have difficulty.

Andrew Opie (Director of Food and Sustainability at the British Retail Consortium), stated that any reduction in supply would lead to further price pressure.

The government should help growers. The growers have lobbyed for the removal of gas tax and other levies, but Rishi Sunak, finance minister, did not include it in last week’s spring budget.

Montalbano plans to plant a crop in spite of the dark backdrop. After much soul-searching and reflection, Montalbano is certain that he will succeed. His plants may grow “cold”, or without any heat, as he gambles on British weather.

He said that he feels like he has no other choice because “if I don’t I lose my spot.” This was in a glasshouse filled with cucumber plants and bushy greens in March.

“Am it going to be worth anything? He stated that he would be very happy to make even this year.

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