Mixed fortunes continue to confront Northern Ireland’s farming sector
A number of Northern Ireland’s farming sectors continue to enjoy significant levels of profitability.
But for others, however, challenges are evident.
This was the overview of the industry delivered by Ulster Bank’s Head of Agriculture, Cormac McKervey, while attending this year’s Clogher Show.
He further explained: “The poultry meat and egg sectors continue to perform well. Beef is steady. Yes prices did come back a bit. However, store prices did come back and there was that correction.
“Farmers will have to work through these issues. But beef is still a good price.
“There sector seems to be a consumer kick back if prices go above a certain level.
“There will be a few more finished animas becoming available later in the year. But the general supply: demand balance is fine.
“Lamb continues to do well, which has been the case for the past five to six years.”
Where milk is concerned, the Ulster Bank representative pointed to the sector coming through the recent fall back in markets relatively unscathed.
He added: “The challenges facing the dairy industry seem to have bottomed out. And farmers have done well to get to this point.
“To be honest, last autumn there was a general perspective that milk prices might well have fallen to a greater extent than they actually did.
“At 31 to 32 pence per litre. The current milk price is still below the cost of production on most farms.
“But on the back of decent cull cow and dropped calf prices, there is enough money coming in to allow farmers through.
“We are seeing some farmers seeking to heavily utilise their overdraft facilities. And this is particularly so in cases where businesses are closed with TB.”
Looking ahead, McKervey pointed to possible reductions in milk output across Europe where drought has impacted large numbers of dairy farms.
“If this is the case, then there is the prospect of a better supply: demand balance,” he commented.
Meanwhile, the challenges now facing the pig sector are a cause of concern for Ulster Bank.
Cormac McKervey again: “Prices are poor, below the cost of production on many farms.
“Those businesses with home mixing facilities and achieving high levels of herd health might just be making a small margin.
“But the biggest concern is centred on those farms that are losing their supply contracts with Sofina on January 1st next.
“Heavy culling has already taken place within these businesses. There is no point in producing pigs for which there is no market.”
Turning to the arable sector, the Ulster Bank representative confirmed that Harvest 2026 is progressing well.
“Grain is coming out of the fields with exceptionally low moisture levels.
“As a result drying costs have not been an issue for growers up to this point. There is also a strong demnd for straw at the present time.”
Cormac McKervey is very conscious of the fact that the new Nutrients Action Programme (NAP) will have a major impact on farming practices across Northern Ireland.
He further explained: “The most recent set of proposals are workable, relative to what was on the table 12 months ago.
“Ulster Bank will be relating its view on the NAP public consultation courtesy of planned meetings with a wide range of stakeholder organisations.
“It is also important that we see the full economic impact statements associated with the new NAP package in the near future.”
Cormac McKervey: “Ulster Bank is welcoming the recent launch of the new Sustainable Farming Investment Scheme.
“The measure will help to improve health and safety, productivity and environmental standards reduce labour input in a very positive way.
“The end result is an increases in farm business sustainability.”