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.” Irvine warned that the financial pressures faced by farmers could ultimately lead to reduced food production, which could result in higher prices for consumers. He urged the UK government to take urgent action to address the challenges facing the agricultural sector, including providing support for farmers to manage the increased costs of production.

In their letter, the UFU called for a comprehensive review of agricultural policies to ensure that they are adequately addressing the challenges posed by volatile input costs. They also emphasised the need for greater investment in sustainable farming practices and the development of resilient food production systems that can better withstand external shocks.

The UFU’s concerns are not unique to Northern Ireland, as farmers across the UK and Europe are grappling with similar challenges. The organisation has called for collaboration between governments, farmers, and other stakeholders to develop strategies that can help to stabilise agricultural markets and ensure the long-term sustainability of food production.

As global geopolitical tensions continue to pose risks to food security, the UFU’s call for action serves as a reminder of the critical role that farmers play in providing a stable food supply for society. The challenges they face are complex and multifaceted, but the potential consequences of inaction are significant, not only for the agricultural sector but also for consumers and the wider economy.

In response to the UFU’s letter, Downing Street and the Department for Northern Ireland have stated that they are committed to supporting farmers and addressing the challenges posed by volatile input costs. They have pledged to work closely with the agricultural sector to develop solutions that can help to mitigate the impacts of these challenges and ensure the sustainability of food production in Northern Ireland and beyond.