Union warns food supply at risk as costs surge and retailers lag

UK food production is at risk unless supermarkets respond to rising farm costs, the Ulster Farmers’ Union (UFU) has warned.

The union has called on major retailers to recognise what it describes as “unprecedented” financial pressures on farm businesses and ensure these are more fairly reflected in prices across the supply chain.

The warning comes as inflation hit 3.3% in the year to March, driven largely by higher fuel and energy costs linked to global instability.

For farmers, however, the picture is more severe, with input costs such as fuel and fertiliser rising far faster than returns at farmgate level.

The squeeze is being felt most sharply during the spring peak, when demand for inputs is highest, leaving many farms facing immediate cashflow pressure.

UFU President William Irvine said producers are dealing with “sustained and, in many cases, unsustainable increases in the cost of doing business”, with fuel price rises having “a direct knock-on effect across the entire supply chain from field to fork”.

While price increases can take time to reach supermarket shelves, he warned that farmers are already carrying the burden. “They cannot continue to absorb this level of pressure indefinitely,” he said.

Mr Irvine also pointed to “a growing disconnect between what is happening on farm and what is being reflected in the marketplace”, arguing that efforts to shield consumers must not come at the expense of producers already working on tight margins.

With retailers holding significant influence over pricing, the union said failure to reflect rising production costs risks pushing further strain back onto primary producers.

The UFU warned that ongoing volatility in fuel and fertiliser markets is already shaping decisions on farm, with potential consequences for future output.

“Food security must not be taken for granted,” Mr Irvine said, adding that a resilient food system depends on viable farm businesses. Without fair returns, he warned, it “will ultimately affect production levels and increase reliance on imports”, leaving consumers more exposed to global disruption.

The union has written to leading retailers seeking urgent talks on how pressures can be shared more evenly across the supply chain.

“We are asking retailers to engage constructively with us. Transparency and fairness across the supply chain are essential,” Mr Irvine said.

With the Balmoral Show approaching, the UFU said it provides a key opportunity for face-to-face discussions, at a time when pressure is building for meaningful progress.

Retailers have previously said they are working to balance fair returns for suppliers with the need to keep food affordable for consumers.

The UFU said farmers remain committed to producing high-quality, safe and sustainable food, but warned this must be matched by a supply chain that reflects the true cost of production.

“This is about fairness,” Mr Irvine said. “Farmers cannot continue to shoulder rising costs alone.”

Without action, the union cautioned, the pressure on farm businesses is likely to intensify — with implications not only for producers, but for the stability and resilience of the UK’s food supply.