UK Farming Sector Seeks Supply Chain Reset Amid Rising Costs

The UK's farming sector is facing significant challenges due to rising input costs and stagnant output prices. Tenant Farmers Association chief executive George Dunn argues that it's time for a true supply chain reset.

Farm businesses across various sectors, including arable, horticultural, dairy, and livestock, are struggling to stay afloat as input costs continue to rise without corresponding increases in output prices. Fertiliser prices provide a stark example of the problem: when the war in Ukraine began four years ago, wheat prices were around £300 per tonne while fertiliser skyrocketed to roughly £900.

The situation has been exacerbated by exceptionally low yields this year, leading to severely curtailed margins and reduced ability to fund next year's crops. Fresh produce is also affected, with major retailers pushing against price increases for primary producers despite the heavy cost inflation in getting product to market.