Animal feed and fertiliser importers have been urged to pass on any savings to farmers who are continuing to “grapple with high prices,” according to an MLA.
East Derry MLA, Claire Sugden believes that farmers need all the financial help they can get particularly in light of “claims that many companies have made huge profits”.
Sugden said that it “does not sit well” that some companies may be profiting from recent hikes in prices but may be neglecting to pass on savings when prices reduce.
The MLA said costs for farms like fuel, energy, feed and fertiliser, have all risen as a result of the cost-of-living crisis and the spike in inflation fueled by the war in Ukraine.
Sugden has called for the financial pressures that farmers are facing to be eased so that they can maintain their businesses and “continue to feed Northern Ireland affordably”.
The MLA added: “Alongside the rest of society, farmers have seen their costs shoot up over recent months and years
“Much of the extra cost inevitably filters down to the consumer, but plenty is often absorbed by the farmers themselves.
“If we are to sustain the businesses of our local food producers then everything possible should be being done to ensure they do not pay over the odds for any of their vital commodities.”
Sugden said it is important that implications for farmers and consumers are acknowledged and that importers of feed and fertiliser should be compelled to support their long-standing farming customers.
‘Demoralising’ supply chain dynamics
The dairy committee of the Ulster Farmers’ Union (UFU) has also labelled the current supply chain dynamics as “demoralising”, and said “big agri companies have been reaping the profits while the primary producer has been left with the crumbs”.
UFU deputy president William Irvine said the current cost-of-living crisis, coupled with rising input costs on-farm, has meant that farmers have been “grappling with the financial pressure”.
“There’s no doubt that due to the huge profits feed and fertiliser importers have made, they can afford to reduce the price farmers pay for their products,” he said.
“Farmers provide the foundation on which every farming business is built upon and companies have taken their longstanding loyalty for granted.
“I urge farmers to put their farm business and own priorities first and shop around when buying inputs,” Irvine added.
He has also urged suppliers “to seriously consider” that if there is no movement in these high input costs, there will be less production on farms and that will have implications throughout the supply chain for all players.
