NFU warns Defra fertiliser disruption could affect UK food supply

Farm leaders have warned that global conflict could drive up farm input costs and threaten the UK food supply chain after holding talks with Defra ministers.

The NFU met Defra Secretary Emma Reynolds and Farming Minister Dame Angela Eagle to discuss food resilience as tensions continue in the Middle East.

NFU president Tom Bradshaw told ministers that disruption to global oil and gas markets is already affecting the price of key inputs such as fuel and fertiliser, which are essential for spring planting, crop growth and forage production for livestock.

The warning comes against the backdrop of the conflict involving Iran, the US and Israel, which has contributed to disruption to shipping through the Strait of Hormuz, a key global shipping route for fertiliser raw materials.

Around 25% to 35% of global trade in fertiliser feedstocks passes through the strait, meaning any prolonged disruption could significantly affect global supply chains.

Analysts say a continued closure could increase both production and transport costs for fertiliser manufacturers.

The Middle East is also a major producer of ammonia and nitrogen, key ingredients used in many fertilisers essential for crop production.

Any tightening of global nitrogen fertiliser supply could have ripple effects across agriculture, potentially affecting both fertiliser availability and prices for growers.

Mr Bradshaw said volatility in global energy markets is already creating uncertainty for farm businesses.

“The Secretary of State recognised that volatility in the global energy market has a huge impact on our food supply chains here and they are watching this very closely,” he said.

He also raised concerns about a lack of transparency in the pricing of key farm inputs, warning that some farmers do not know the cost of products until they have already been delivered.

“It’s clear that transparency and fairness over fuel and fertiliser prices is critical, and we’ve been asking for this for a long time, regardless of market volatility,” he said.

Mr Bradshaw added that the issue is particularly urgent as farmers begin key seasonal work.

“It’s particularly urgent as farmers and growers are busy getting crops in the ground and boosting grass growth ahead of spring grazing.”

He said some farmers are only made aware of the price they will pay once products have been delivered to the farm.

“Some farmers are only being made aware of the price they will pay once products have been delivered onto farm, making it difficult to decline or challenge the price.

“This limits their ability to make informed decisions and erodes trust.”

Mr Bradshaw warned that global events can have lasting impacts on agriculture and the wider economy.

“We’ve already seen this situation play out with the Russian invasion of Ukraine, which contributed to the cost-of-living crisis in the UK,” he said.

“With the removal of farm support which added a layer of resilience for many farm businesses, farmers are more exposed than ever to global markets.”

He said the UK must find ways to strengthen farm resilience and protect domestic food production from global shocks.

“We need to find ways to prevent UK farm businesses becoming collateral damage to global politics,” he said.

“While the impact on food production and food price inflation will depend on what happens over the coming weeks, it is yet another sobering reminder of the need to build resilience in UK farming.

“We have to build our ability to withstand global shocks so we can continue to produce food for the 70 million consumers of the UK.”

The NFU said it is closely monitoring commodity markets and working with the Confederation of British Industry and agricultural supply chains to assess the potential impact on food production and costs.

Energy costs remain a major factor in fertiliser production, with natural gas accounting for between 60% and 80% of the cost of producing nitrogen fertilisers.

Industry leaders have also raised concerns about poor transparency in red diesel pricing, with some farmers reportedly only learning the final price once fuel has been delivered.