Business Updates
The US blockade of Iran’s ports in the Straight of Hormuz has begun but the conflict continues to affect global markets and shipping.
Movements through the Strait - the route for around 20% of global oil flows - are still heavily constrained, with delays continuing to influence energy prices and input costs worldwide.
For our farmers and rural businesses, these global pressures translate into higher prices, mainly across fuel, fertiliser and haulage.
As a co‑operative, we recognise the damage rising prices are having on farm businesses and have worked hard to absorb haulage and fuel cost increases wherever possible, while taking steps across our own fleet and supply chain to minimise the impact on our members.
And our focus remains on supporting farmers through the current disruption as we work towards a return to greater pricing stability.
CEO Jack Cordery said: “Our priority is to stand alongside our members and do everything we can to limit the impacts being felt across the sector. We are working hard to absorb and mitigate these pressures wherever possible, in what remains a fast‑changing, volatile and uncertain situation.
“Although these challenges are beyond our control, we are committed to protecting our farmers wherever we can while being open and transparent in the face of possible prolonged fuel inflation.”
While no one knows how long the current situation will last, we are also focused on keeping supplies moving by working proactively with suppliers, logistics partners and industry experts to anticipate issues early and respond quickly.
And we have strengthened our logistics and storage position. Our recent deal with Cattedown Wharves in Plymouth, alongside our existing arrangement with Appledore dockyard, allows us to store feed ingredients at ports and nearby warehouses.
This improves resilience for key commodities, helps protect continuity of supply and reduces exposure to sudden price spikes.
Thanks to our cooperative ethos, buying power and your valued and continued support, we are well placed to keep prices as low as possible and provide clear, reliable information, which we will continue to share in updates through our website.
As the situation evolves, our nutritionists, agronomists, specialist teams and store staff are ready to support you with clear guidance and practical support, while offering some protection from fluctuating prices.
Fuel...
WHAT we are experiencing...
Volatility in crude oil prices and supply disruptions caused by the ongoing conflict in the Middle East.
WHAT does this mean...
We are currently unable to offer a fixed price at the time of order. Pricing is now confirmed on the day of delivery
WHAT we are doing...
Forecasting demand, advising customers on usage and buying strategies, and working closely with all suppliers to secure the best possible deals.
Advice...
Manage risk by covering immediate requirements and reviewing usage regularly.
Feed & Supplements...
WHAT we are experiencing...
We are seeing price volatility in raw materials due to oil markets being at record levels and surcharges being put on freight, as well as our sterling currency struggling in this climate.
WHAT does this mean...
The disruption is adding costs to the supply chain and the situation is changing repeatedly. When the war does end, we can expect markets to start correcting back down in value.
WHAT we are doing...
We are trying to purchase what we see as good value materials or items that have not been as adversely affected, while offering customers the choice of contracting their feed to take any further risk off the table for their summer prices.
Advice...
Decisions don’t need to be 100% of your requirement. They can be calculated amounts to ensure some protection.
Fertiliser...
WHAT we are experiencing...
Supply issues and rising prices in the LNG market are directly impacting fertiliser pricing and availability, particularly for nitrogen‑based products.
WHAT does this mean...
The UK currently has very limited availability of Urea and AN. Many suppliers are withdrawing from the market on a daily basis, resulting in high‑risk and high‑priced replacement values.
WHAT we are doing...
Monitoring prices and availability closely, and securing volumes with suppliers wherever possible.
Advice...
On‑farm demand has increased due to improved weather conditions. We recommend securing your April and May requirements promptly.
Agri Supplies...
WHAT we are experiencing...
Supplies closely linked to the petrochemical industry are seeing significant increases in raw material costs, and availability is now coming under notable pressure. Several raw material suppliers have already declared force majeure.
WHAT does this mean...
These challenges are driving price increases and may impact product availability in the near future.
WHAT we are doing...
We are working closely with our supply chain to secure product availability and are doing everything possible to keep any price increases to an absolute minimum.
Advice...
Plan ahead and place orders as early as possible.