Recent increases in prices and demand threaten to
pinch the financial returns of farmers.
Certain farm input costs continue to spiral upwards. This is
taking some of the gloss off better prices in the cereals and
milk sectors, and adding to the margin pressure in other
sectors where there have not been significant price
increases.
Animal feed prices are well documented. The uplift in
cereals prices since the spring has been a prime factor, but
the contribution of protein to animal diets should not be
forgotten. As an example, soya prices have risen since last
winter.
An oil price of around $100 per barrel directly feeds into
higher tractor fuel prices. Duty rises on gas oil haven't
helped. The rise in global energy costs is reflected in the
price of fertiliser, as gas is a major feedstock for nitrogen
production. Supply and demand imbalances are also driving up
fertiliser costs. Higher grain
