THERE can be no denying that price inflation is impacting us all. Whether its fuel, food or finance, the rapidly rising cost of living is eating into the disposable income of people in all parts of the world.
On paper, an increase in the price of food should be something farmers like us at Jamison Farms welcome and yes, the price we’re getting for our milk and beef is indeed stronger than we’ve enjoyed for years. It’s not the levels you might have to pay as a consumer in the shop – farmers get paid a fraction of that price by processors – but it is certainly a welcome boost.
But, as with everything in farming, all is not as simple as it might seem.
That’s because the price we’re paying for inputs – fertiliser, red diesel, electricity, feed or labour – have all jumped in tandem and in some cases have increased by up to 250 per cent, far outstripping the increase in our outputs.
Brexit was responsible for a steady increase in the cost of labour and other inputs over the last few months but that has been exacerbated substantially by the Russian war against Ukraine. Together, Russia and Ukraine account for some 30 per cent of global wheat exports so with that supply taken out of the market, prices have soared. That situation is replicated for other grain, for oil and for fertilizer.
That means any increase in the profit margin we might have enjoyed has been largely wiped out by an increase in input prices. That is particularly true for our potato enterprise which hasn’t enjoyed a significant hike in the farm gate price for ware potatoes but has had to cope with soaring costs for all inputs, a factor which quickly erodes any chance of profit. In fact, given the extremely high costs of growing potatoes are likely to record a loss this year.
Working in such straightened times, it has never been so important for consumers to support their local farmers by buying local.
This is the message we will be giving visitors who attend our Dunloy farm during Bank of Ireland Open Farm Weekend on Friday to Sunday June 17-19, in a bid to help them connect with where their food comes from.
Visiting farm shops is obviously the best route to achieving that aim - as it puts your money directly into the hands of the producer – but few people have access to those on a daily or weekly basis.
Rather, make provenance the most important factor on the wishlist of your weekly shop in the supermarket.
Make a point of reading the label and look out for locally-produced food.
Not only will it be helping hard pushed farmers like us to seek out the ever-diminishing profit margin, it also helps the environment by reducing food miles.
Consumers have incredible power and can use it to lend a hand to the people and businesses committed to putting food on their table.
A worthwhile cause if ever there was one.
:: Adrian Jamison runs Jamison Farms, a mixed farm at Drones Road in Dunloy
