The conflict in the Middle East is tightening global energy and fertiliser markets, driving up feed micronutrient costs and haulage prices.
Together, these factors are increasing sustained pressure on the UK poultry sector.
Disruption in the Strait of Hormuz, through which a significant share of global ammonia and urea shipments pass, has created volatility in the availability of key fertiliser-derived inputs used in poultry feed.
Making informed decisions
Another concern is the rising fertiliser costs which increase the price of producing arable crops such as wheat, barley and maize that form the foundation of poultry rations.
“Strengthening resilience and ensuring fair support for domestic food production will be essential as geopolitical instability continues.”
NFU Poultry Board Chair Will Raw
Micronutrient premixes are reliant on stable, global chemical supply chains and so are particularly sensitive to these disruptions.
The result is tightened availability and increased price volatility, adding further cost pressures to producers who are already operating on narrow margins.
I'm trying to plan as best as I can for what feels like an incredibly unpredictable situation.
Thinking about feed availability and costs, I'm having regular conversations with my supplier and would encourage others to do the same. Although it's incredibly difficult, we have to try and make the most informed decisions that we can.
Poultry farmers feeling the impact of energy costs
Energy is a critical input for poultry production, used to heat housing for young birds, ventilate sheds and maintain environmental control systems. We rely heavily on gas and electricity as a sector so, given a substantial proportion of the world’s oil and gas shipments pass through the Strait of Hormuz, producers like me are rightly concerned.
The conflict has triggered sharp increases in global energy prices, and higher gas and oil prices translate directly into increased production costs.
Energy cannot simply be reduced without compromising animal welfare, meaning poultry farmers are feeling the impact immediately.
Sustained energy inflation risks eroding profitability across broiler, layer and turkey enterprises both now and in the future. The NFU is closely monitoring the situation and we are already feeding concerns into the government.
On my farm, I'm ensuring energy use is as efficient as it can be. Investing in good technology has enabled me to monitor energy use and the data produced ensures I maximise the best environment for the birds which translates to better production.
Difficult decisions
Fuel prices in the UK closely track global crude oil movements and the war has driven a surge in both petrol and diesel prices. Red diesel has risen in parallel and, with haulage being a critical cost centre for poultry, this is another key area to watch.
Specialist live bird transport, feed deliveries and egg collections all depend on reliable, affordable fuel.
Rising diesel prices increase the cost per mile for hauliers, who then pass these costs back to producers. With margins already squeezed, these additional logistic costs compound the financial strain on farmers as well as those operating across the wider supply chain.
It is essential to ensure we have the best contract for the business we operate and this will differ between farms.
I've had to make huge decisions in the past regarding who I work with in the wider supply chain to ensure the viability of my business and sometimes difficult decisions have to be made.
Even if your current relationships work, it's important to assess where you might be in the future if cost volatility continues and to be aware of your options should the situation dictate the need for change.
Cost pressures threaten business viability
To conclude, the situation has exposed the UK poultry sector’s vulnerability to global energy and chemical supply shocks, similar to constraints and impacts we’ve seen with other global shocks such as the Covid-19 pandemic and when Russia invaded Ukraine.
For some producers, micronutrient availability is already tightening, energy costs are rising and haulage is becoming more expensive. This is creating cumulative pressure that threatens business viability and producer confidence against a backdrop of rising demand for British poultry meat and eggs.
Strengthening resilience and ensuring fair support for domestic food production will be essential as geopolitical instability continues and this is something the NFU Poultry Board continues to prioritise.
