UK farming unions issue letter to Energy Security and Net Zero Secretary of State
The four leading agricultural organisations across the UK, have written to the Department for Energy Security and Net Zero (DESNEZ) calling for the extension of the Energy and Trade Intensive Industry scheme (ETII) to include horticultural and poultry production.
The letter, to Secretary of State Grant Shapps MP, has been signed by the Presidents of NFU Scotland, NFU, NFU Cymru and Ulster Farmers’ Union.
The letter concludes that unless the scheme is amended to provide a higher level of relief, there could be a reduction in domestic food production which risks longer running food price inflation for consumers. It could also negatively impact the thousands of supply chain companies that are sustained by the farming sector.
The letter states: “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.
“When the Energy Bill Relief Scheme changes at the end of March, higher energy costs will be a challenge for all farmers, however, the situation will be acute for the poultry and horticulture sectors. Poultry businesses are reliant on gas and electricity to rear poultry and store fresh produce safely and they will struggle to absorb the huge hikes in energy prices that they will face. Horticulture’s exposure is significantly greater for gas for glasshouse heating, but also electricity used for lighting (for those with lit crops) and chilling and storing picked produce.
“Furthermore, most businesses won’t be able to benefit from current low market prices until high-cost contracts expire. The government guidance under EBRS was to fix a contract. Those businesses who ignored Government advice to fix their contracts will now be the first to benefit from price drops.
“We are currently awaiting the publication of further guidance and urge you to review the classification for higher level support. Energy prices are already seriously damaging our ability to produce food and from next month, many of our members’ businesses will face an energy cost cliff edge.”
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Contact Bob Carruth on 07788 927675