Volatile food prices ahead

Food prices are set to remain volatile as global conditions improve while UK farmers struggle to bring in their rain-sodden harvest.

Mark Price, head of Waitrose, told Radio 4 listeners this morning that food prices would start to come down soon because a good summer vegetable harvest and a better global supply of wheat.

Speaking on BBC Radio 4's Today programme, Mr Price said: "Certainly, if you look at vegetables, the prices there are coming down.

"Wheat prices across the world are stabilising because, generally speaking, harvests across the world have been much better this year.

"They are going to start seeing prices levelling off in the next 12 months as either the retailers are absorbing some of that cost or the food costs in the supply chain start coming down."

However, British farmers are facing ruined cereal crops, as torrential rains damaged the harvest.

A government ban on using combine harvesters while fields are waterlogged to protect the soil means crops have been rotting in the fields.

Although the National Farmer's Union (NFU) has successfully lobbied Defra to lift the ban, farmers will be encountering "considerable extra costs through having to dry wet crops," NFU spokesperson Ian Backhouse said.

This will also have an impact on feed-grade yield, Mr Backhouse added, which will ultimately affect meat prices.