I recently had a conversation with an organic farmer. While he is able to pass on at least some of his increased costs for energy and fuel through direct sales and cooperatively organized distribution channels, his conventionally farmed colleagues have a bigger problem. They have long-term purchase contracts that fix the prices for milk, meat or vegetables. In the case of milk and meat in particular, production costs…
1) gas was ~1.5eur here, then it fell to 1.0eur during the plague, and there were zero price drops beacause of that, and when the price started rising to 1.1, 1.2, 1.3 eur, everybody (farmers, retailers) started complaining about increasing gas prices and how that will result in higher consumer prices (even before we hit the price a year before that).
2) farmers complain about low prices they get from processors (and retailers).. then you want to buy meat directly from them, and their price is usually a lot higher than in-store price (even though there are usually two or more middle-men between them and the store), and you cannot choose anything... want steaks? Want beef thigh? Hah, good luck.. you can only buy 10, 20kg+ of "mixed beef", where 90% is "meat for goulash" (hard, cheap cuts) and 10% bones for soup. So yeah... it's Aldi for me.
Also, there were farmers complaining that they had a bunch of food that they had to throw away because of the plague (eg. contract with school, school closed, a few tons of salad had to be thrown out)... noone offered for people to come buy stuff directly from them at whatever cheap price,.. in the meantime in-store prices were relatively expensive for that same salad.