After a year of soaring food, fuel, and energy prices for consumers and farmers alike, inflationary pressures are likely to peak and ease with further signs of recovery coming to light within the agriculture sector.
The message came at an event hosted by Ulster Bank this week ahead of its sponsorship of this year’s Balmoral Show which returns to Balmoral Park in four weeks’ time.
During the breakfast briefing, senior figures from within the bank provided an update on a number of key issues facing the local agri-food sector.
Ulster Bank support for Balmoral
Senior agriculture manager, Cormac McKervey and Ulster Bank’s chief economist, Richard Ramsey, updated media, including members of the Guild of Agricultural Journalists, as well as other invited guests, on the overall health of the local food and farming sectors and an outlook on other related economic issues.
They were joined by Ulster Bank’s head of NI, Mark Crimmins, who encouraged those in the audience to tap into the bank’s knowledge and connections to the agri-food sector and outlined the ways Ulster Bank is tackling climate change and grasping the opportunities presented by a new, greener economy.
During his opening remarks, Crimmins said: “The agri-food sector is a crucial component of our local economy and as such, we remain strongly committed to supporting farmers throughout this period of economic unrest.
“We recognise the challenges they face with higher input costs, the damaging effects of inflation and even the variable weather but amid these challenges, a major transformation is under way, presenting new, exciting opportunities for this sector.
“As a leading financier of renewable energy projects, we want to work with growers and producers to help them shift towards more nature-friendly practices and examine how they might produce food while emitting less.”
He explained that Ulster Bank is therefore offering new green propositions including loans and green asset financing options for qualifying small- and medium-sized enterprises (SMEs).
All Ulster Bank business managers now undergo specialist climate training to help customers on their sustainability journey in a way that places an equitable burden on the agri-sector, Crimmins explained.
Cormac McKervey added: “Undoubtedly, farmers in Northern Ireland are going through a challenging period and facing undue pressure to produce affordable food against a backdrop of labour challenges and rising input costs.
“But, compared with where we were 12 months ago, there are a few glints of optimism.
“Since the beginning of this year, we have seen increased activity across land, poultry, and dairy. Fertiliser prices are falling, and feed costs are also showing signs of decreasing which should alleviate some of the more upfront cost pressures.”
However, he acknowledged that there are still significant concerns for pig farmers where improvements seem to be happening at a slower pace than in other areas of the industry.
“All eyes will be on DAERA’s Draft Ammonia Strategy for NI but whatever the outcome, this is likely to have further implications for the local industry and become a growing issue as the year progresses,” McKervey said.
