Following the HGV crisis, farmers were compelled to raise food prices by 40%.
Farmers have been forced to raise food prices by 40% due to supply chain disruptions caused by the UK’s HGV driver shortage.
Farm haulage manager Rob Vickers told Radio 4’s Today Programme on Monday that the pricing increases are the result of increased driver rates in order to retain key truckers and recruit new ones into the firm. However, he highlighted that the hikes will eventually be felt by the average British consumer, as food costs will rise as a result of the increases.
“As you can see, there are forty vehicles parked up,” Mr Vickers explained, “parked up because they have no drivers due to a driver shortage in the UK.”
As a result, he highlighted how his company has been compelled to raise driver fees in order to keep current drivers and recruit new ones.
However, he emphasized that in order to share out the economic blow, the company’s client base would have to bear this expense through an increase in product costs.
Customers such as the Ministry of Defense and construction machinery manufacturers have seen their rates rise, allowing Mr Vickers’ company to execute the modifications.
The haulage manager said how the situation in Britain is so bad that clients are now facing price hikes of “35-40 percent” to battle the different shortages, which have been exacerbated by the petrol crisis.
Customers are unhappy with such a price, he said, making it a “uphill battle” for farmers to keep up and stay in business.
However, he warned that these cost hikes will eventually be passed on to customers, hurting the budgets of ordinary Britons who will see food prices rise as a result.
“It becomes a difficulty for the end-user rather than the person for whom we are doing the work,” Mr Vickers explained.
As his sector battles spiraling prices to make ends meet, he suggested that the chaotic driver shortage “may take months, it could take a year” to overcome.
According to the Road Haulage Association, the United Kingdom today has a shortfall of almost 100,000 certified drivers.
Many theories have been proposed as to why there are shortages, including Brexit, the coronavirus outbreak, and working conditions. “Brinkwire News Summary.”