UFU writes to PM about rising costs on food production

The Ulster Farmers’ Union (UFU) has written to UK Prime Minister Kier Starmer and Northern Ireland Secretary of State Hilary Benn, expressing concerns over the increasing volatility in agricultural input costs and their potential impact on food production. Representing around 12,000 farm families across Northern Ireland, the UFU has drawn attention to ongoing geopolitical tensions in the Middle East, which are creating significant uncertainty for the sector, particularly in relation to fertiliser, fuel, and energy prices.

UFU President William Irvine has highlighted that recent global events, including the war in Ukraine, have once again exposed the vulnerability of food production systems to external shocks. He stated, “Farmers have already experienced the impact of global instability following the war in Ukraine, where sharp increases in fertiliser and energy prices placed enormous pressure on farm businesses.” The UFU has emphasised that Northern Ireland agriculture is particularly exposed due to its reliance on imported inputs. Fertiliser and fuel represent a significant proportion of on-farm costs across all sectors, including the arable industry, which is especially vulnerable to fluctuations in input prices.

Irvine added that for arable farmers, “fertiliser and fuel are fundamental to crop production.” He explained that any sharp increase in costs has an immediate and direct impact on margins, at a time when many in the sector are already under significant financial pressure. The organisation highlighted that many farming sectors, including beef, dairy, and cereals, are currently experiencing a financial squeeze, with rising costs continuing to outpace returns. “Across the board, farm businesses are dealing with tight margins and ongoing uncertainty,” Irvine said. “The prospect of further increases in input costs will only add to that pressure, making it even more challenging to maintain viable and sustainable food production.”

The UFU also pointed out the “knock-on effects of rising energy and fertiliser prices on food prices for consumers.” It warned that the financial pressures faced by farmers could ultimately lead to reduced food production, which could result in higher prices for consumers and potential food insecurity. The union called for urgent action to address the challenges facing the agricultural sector, including measures to stabilise input costs and support farmers in the long term.

In response to the UFU’s concerns, the UK government has pledged to work closely with farmers and stakeholders to address the challenges posed by volatile input costs. The Northern Ireland Secretary, Hilary Benn, has stated that the government is committed to supporting the agricultural sector and ensuring the resilience of food production in the region. The UFU’s letter to the Prime Minister and Secretary of State marks a growing concern among farmers about the future of agriculture in Northern Ireland and the need for government support to mitigate the impacts of global instability on the sector.

The UFU’s call for action comes as farmers across the UK and Ireland grapple with the effects of rising input costs, which have been exacerbated by global geopolitical tensions. The union’s concerns are shared by farmers and agricultural experts alike, who have been warning about the potential for food insecurity and higher prices for consumers if the situation worsens. The UFU’s letter to the UK government highlights the urgent need for a coordinated response to address the challenges facing the agricultural sector and ensure the long-term sustainability of food production in Northern Ireland.

In conclusion, the Ulster Farmers’ Union’s letter to the UK Prime Minister and Northern Ireland Secretary of State underscores the critical challenges faced by the agricultural sector in Northern Ireland due to rising input costs and geopolitical tensions. The union’s concerns about the potential impact on food production and consumer prices are a stark reminder of the vulnerability of food systems to external shocks. As the government considers ways to support farmers and stabilise the sector, the UFU’s call for urgent action serves as a warning that the future of food production in Northern Ireland and beyond could be at risk if decisive measures are not taken to address the challenges posed by global instability.