More than half of England has entered drought conditions, according to a declaration by the Environment Agency last week. This hot and dry weather is less than ideal for farmers and could affect food prices.
The British Retail Consortium (BRC) is warning that extreme weather creates a knock-on effect on all parts of the supply chain, which could force prices up. Andrew Opie, the BRC's director of food and sustainability policy, stated that extreme weather, including drought, can affect crop yields and place upward pressure on prices.
Farmers and flour producers have been adapting to the earliest harvest in 50 years. The National Farmers' Union has warned that there could be a shortage of certain food products if current drought conditions continue.
Prof Manoj Dora, director of the Centre for Intelligent Supply Chains at Anglia Ruskin University, suggests that while one week of hot weather may not impact bread prices, prices could rise if crop supplies run out. He added that meat, milk, eggs, and chicken could be affected by a lack of animal feed.
Simon Willis, chief executive of Camgrain, noted that drought conditions mean this year's crops have not reached their full potential, resulting in good quality but lower yield. Retailers are experienced in managing supply disruptions and will take steps, including sourcing from alternative suppliers, to minimise impact on customers.