Why have supermarket carrot prices risen by almost 40% in 2024?

Carrot prices have surged nearly 40% due to widespread flooding earlier in the year, which severely impacted UK carrot crops, according to the British Carrot Growers Association. The extreme weather led to increased imports, which are two to three times more expensive than domestic produce. Retailers, including the major UK supermarkets, also raised prices after years of a price war which meant they were selling carrots below production costs. While weather conditions improved this summer, the industry expects stable, but not surplus, supplies, suggesting prices will remain elevated.

Carrot prices up after “disastrous” year for growers | KVI Tracker | The Grocer

1 According to the article, what factors have caused the price of carrots to rise this year?

2 Using a demand and supply diagram, explain why carrot prices have risen this year.

3 Discuss the impact of a supermarket price war on consumers and producers.