Hiked prices to push shoppers towards local produce, says research

One in five Britons prefer to shop at stores that stock local produce, states a recent report, adding that price hikes will be exacerbated by the Ukraine crisis which in turn could shape new shopping habits over the coming months.

According to a new research by GlobalData, price hikes will be felt by the 55 percent of shoppers in the UK who say that they are concerned about their finances.

“With a likely slowdown in imports and exports, this may encourage consumers to look at local produce rather than relying on costly imported goods,” said Khalid Peerbaccus, a senior researcher for the firm.

He pointed to survey data showing that 20 percent of shoppers in the UK admit that retailers with local ingredients are a big factor in deciding where they do their grocery shopping. “Investing in local businesses and locally sourced produce will help the country to become less reliant on imports and reinforce the message to farmers that we need to produce more,” said Peerbaccus.

“However, this will not be an easy task, as the impact of inflation will be felt by the farmers down to the consumers. But with the likelihood of the situation being drawn out for months, it seems to be in the best interest of the UK to become as self-sufficient as possible.

“Either way, people are going to feel the pinch this year as food prices continue to rise. The UK is set to see long-term fallout from this inflation, as it is further exacerbated by Brexit which has created drawn-out challenges to trade and additional rules and regulations for British farmers to comply with.”

Earlier this week, the UK boss of Arla Foods suggested that shops could run out of milk unless farmers can recoup the surge in costs.

Dairy farmers have been hammered with soaring bills for everything from fertiliser and animal feed to diesel. There is now concern they will redirect milk from UK shops to other markets.