UFU warns Prime Minister over rising costs and growing pressure on Northern Ireland food production

The Ulster Farmers’ Union has written to the Prime Minister and the Secretary of State for Northern Ireland warning that rising agricultural input costs, driven by renewed global instability, are placing increasing pressure on farm businesses and could threaten food production across Northern Ireland.

Representing around 12,000 farm families, the Union said ongoing geopolitical tensions in the Middle East are creating fresh volatility in the cost of essential farming inputs, particularly fertiliser, fuel and energy.

The warning comes as many producers across Northern Ireland are already facing tight margins, with rising operational costs continuing to outpace returns in key sectors including beef, dairy, cereals and arable farming.

Fresh global instability raises fears for local agriculture

UFU President William Irvine said recent international developments have once again exposed how vulnerable food production systems remain to external shocks.

“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,” said Mr Irvine.

The Union said Northern Ireland’s farming sector is especially exposed because of its reliance on imported inputs, leaving many businesses highly sensitive to sudden price movements in international markets.

This is particularly acute for arable producers, where fertiliser and fuel are central to crop production and day-to-day operations.

“For our arable farmers, fertiliser and fuel are fundamental to crop production,” Mr Irvine said.

“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.”

Financial squeeze deepening across key sectors

The UFU said the pressure is not confined to one part of the industry.

It warned that farmers across beef, dairy and cereals are all facing a growing financial squeeze, with already narrow profit margins being eroded further by rising costs and ongoing uncertainty.

“Across the board, farm businesses are dealing with tight margins and ongoing uncertainty,” Mr Irvine added.

“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 Union said further cost increases, particularly those outside the control of farm businesses, could have serious implications for the long-term viability of farms and the resilience of Northern Ireland’s food system.

This comes at a time when many farms are also navigating wider policy changes, environmental requirements and uncertain market conditions.

Rising costs expected to feed through to food prices

The UFU also warned that the impact extends well beyond the farm gate.

It said higher energy costs are already affecting the wider food supply chain, including processing, transport and distribution, raising the likelihood of increased prices for consumers.

“These pressures do not stop at the farm gate,” Mr Irvine added.

“Higher energy costs will inevitably feed through the entire supply chain, contributing to increased food prices and placing further strain on consumers.”

The Union’s intervention points to growing concern that volatility in global energy and commodity markets could have a direct effect on household food bills in Northern Ireland.

Concerns over lack of market transparency

A further issue raised by the Union is what it described as a lack of transparency in fertiliser and fuel markets.

It said many farmers are being forced to make major purchasing decisions without access to clear or timely pricing information, making it increasingly difficult to plan ahead.

“This lack of transparency makes it extremely difficult for farmers to plan and manage their businesses effectively,” Mr Irvine said.

“It adds unnecessary risk at a time when confidence is already under pressure.”

The UFU said clearer pricing signals and stronger market oversight are needed to reduce uncertainty and allow producers to make informed business decisions.

Calls for urgent government action

In its letter, the Union has urged the UK Government to take coordinated and proactive action to support the sector.

This includes calls to improve market transparency, strengthen supply chain oversight and formally recognise fertiliser and energy as strategically critical inputs for food production.

The UFU has also sought clarity around future policy developments, including the Carbon Border Adjustment Mechanism (CBAM), and has called for close engagement with the Northern Ireland Executive and the Department of Agriculture, Environment and Rural Affairs (DAERA) to ensure the region’s farming systems are fully taken into account.

“Food security is national security,” Mr Irvine said.

“A sustainable and profitable farming sector is essential not only for producing high-quality food, but also for supporting rural communities and delivering environmental outcomes.”

He added: “Farmers are committed to playing their part, but they cannot continue to absorb escalating costs and increasing levels of risk without the right support and clear direction from government.”

Direct engagement requested

The Union said it has requested direct engagement with government to address both the immediate cost pressures facing farmers and the longer-term steps needed to strengthen the resilience of agriculture in Northern Ireland.

With thousands of farm families represented and costs continuing to rise across the supply chain, the intervention marks a significant warning from the sector at a time of renewed global uncertainty and increasing concern over food security.

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At a glance:

• UFU has written to the Prime Minister and Northern Ireland Secretary

• Union warns rising farm input costs threaten food production

• Concerns linked to instability in the Middle East and wider global tensions

• Fertiliser, fuel and energy prices identified as key risks

• About 12,000 farm families across Northern Ireland represented

• Beef, dairy, cereals and arable sectors all under pressure

• Warning that higher costs may feed through to consumers

• Calls made for greater market transparency and government action

• UFU seeks direct talks with government on immediate and long-term support