The four UK farming union presidents have written to the Secretary of State for Energy Security and Net Zero last week (24 February), to ask that they consider extending the Energy and Trade Intensive Industry scheme (ETII) to include horticulture and poultry production.
From April 2023, the ETII scheme will provide high level energy relief to a number of sectors including food processing and manufacturing. However, it currently excludes primary agricultural production.
Commenting, Ulster Farmers’ Union president David Brown said, “Energy is a critical source within food production and farmers are heavily reliant on it. When the Energy Bill Relief Scheme changes at the end of March, higher energy costs will be a major challenge for all farmers, however the situation will be acute for the poultry and horticulture sectors. Poultry producers are reliant on gas and electricity to rear poultry and store fresh produce safely and will struggle to absorb the huge hikes in energy prices. Horticulture’s exposure is significantly greater for gas for glasshouse heating, but also electricity used for lighting and chilling freshly picked produce. The apple sector being a notable example and how they use their cold stores to produce the high-quality food consumers enjoy.”
The letter expresses that if the scheme is not amended to provide a higher level of relief, domestic food production may decrease, posing a longer-term risk of consumer food price inflation. It could also have a negative effect on the thousands of supply chain businesses that are sustained by the farming sector.
“The four UK farming unions are currently awaiting the publication of further guidance on the STII scheme and urge government to review the classification for higher level support. Our members have been hit hard in recent times with soaring input and energy prices and they’ve been exhausting every avenue to sustain their family farm businesses. Neither farmers or processors can produce food meeting extra energy prices, without receiving a fair return from the marketplace. This would have the potential to impact local food security and would be detrimental for our farming families,” said Mr Brown.
