The imported soy milk contaminant scare of 2021 affected the demand for many dairy-alternative drinks. Traces of unapproved chemical stabilizers were discovered in soy milk products manufactured by several overseas producers. With many of these processed dairy-alternatives, consumers had very little transparency about the origin of the ingredients. If the manufacturers knew, they were not always making this clear to shoppers.
As a result of the scare, the market share of domestically-sourced oat milk in British supermarkets increased from 74% to 79% in 2021. Consequently, the prices farmers received for oats destined for human consumption in the UK rose by 6% in 2021.
Another potential boost for UK farmers is demand from highly climate-conscious consumers in Northern Europe. British oats are increasingly perceived as having a highly sustainable, low-carbon supply chain with robust regulatory standards. European distributors are approaching UK cooperative farms directly to secure long-term grain contracts.
Question
Explain why 'the prices farmers received for oats destined for human consumption in the UK rose by 6% in 2021' (Extract A). Include a supply and demand diagram in your answer.
