UK Grain Supplies and Yields Face Double Blow

The UK's grain supplies and yields are facing a double blow due to dire domestic cereal yields and ongoing disruption to grain supply from major exporting nations. Global grain prices have risen for the second week in succession after exports from Ukraine and Russia were halted by attacks on Black Sea grain infrastructure.

Farmers like Clive Bailye, who farms near Lichfield, Staffordshire, are struggling to make up for the shortfall in their harvest. Depending on soil type and other factors, his yield has been down by 25-35%. To make up for what he has lost, prices must rise significantly.

Bailye estimates that to make up for the yield loss, wheat prices would need to reach £250/t, but current prices are at £204/t. Grain trader Andrey Sizov of SovEcon says the situation is deteriorating daily and global supply will be down by between 3-4m tonnes a month as a direct consequence.