The National Farmers Union has given a warning that there may be an increase in the food prices in UK as the country voted for Brexit.
The president of National Farmers Union, Mr Meurig Raymond has stated that this is not a good sign and also added that UK is higly dependent on imported products and the pound is currently weak, which can only make this worse and a price rise for food is expected. After the referendum result, the pound dropped severely, dropping by 14 percent as the news about Brexit vote sent a shocker across the globe. Mr Raymond stated that they produce just sixty percent of the food that they consume and he feels that they will surely have to depend on imported food in future.
He added that a weaker pound will only mean that there will be an increase in the imported food value. He feels that the government will be responsible if there is any sort of natural disaster or if the currency value goes down any further. At present, the European Union Subsidies for the farmers in Britain is around three billion pounds a year, which completely depends on the exchange rates. The average income of farmers in the year 2014 was around 20K pounds and in that around 55 percent was EU money.
Mr Raymond stated that one more concern was if the tariffs would begin to be applied on major British exports to Europe. He added that Britain exports around 40% of the lamb that they produce in UK into the European Union, which is a very huge quantity.
The NFU has now urged for an emergency meeting of its governing body on the first of July for discussing how leaving the EU will impact the farming. The challenges confronted by the farmers can also be multiplied if there is a shortfall of labour as EU workers who have to come to Britain because of freedom of movement laws will no longer be able to buy the vegetables and fruits.
The Deputy President of the NFU stated that the prices must definitely increase to ensure that the farms make enough profit and benefit from it. He added that many people are already paid less than the cost of production and this is not a going to help in the long run.