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UK Faces Vegetable Shortages Amid Gas Price Surge

Financial Times Companies •
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UK vegetable growers in Lea Valley, the country's cucumber capital, warn of potential shortages of cucumbers, tomatoes and peppers due to soaring natural gas prices. Prices jumped from 70p to £1.70 per therm after the Iran war, now settling at £1.35. Producers say they need higher retail prices to cover these energy costs or risk empty supermarket shelves.

Growers typically purchase gas 3-6 months ahead, but this year's unprecedented increases threaten their viability. Jimmy Russo of Valley Grown Salads expects his gas bill to reach half of turnover, saying "We'd be better off pulling out of the crop now." Negotiations with supermarkets over fixed prices—normally set for six to 12 months—are underway, with some retailers already signaling reduced availability.

The energy crisis compounds existing challenges including elevated fertilizer costs and unpredictable supplier pricing. Sustainable energy growers face additional 60% electricity charge increases from April 1. During the previous energy crisis, supermarkets that refused to renegotiate prices experienced salad rationing, suggesting history may repeat unless retailers adjust to these new market realities.