British poultry industry warns Middle East conflict could drive up UK food prices

Disruptions due to the disruptions in the Midle East have driven up fertiliser prices. This is expected to increase feed costs, and given that feed accounts for the majority of poultry production costs, this is likely to have considerable downstream effects. Image created with the help of AI (Reve)
Disruptions due to the disruptions in the Midle East have driven up fertiliser prices. This is expected to increase feed costs, and given that feed accounts for the majority of poultry production costs, this is likely to have considerable downstream effects. Image created with the help of AI (Reve)

The British poultry meat industry is sounding the alarm as escalating conflict in the Middle East disrupts global supply chains, placing mounting pressure on production costs and threatening higher food prices for UK consumers.

With major disruptions at the Strait of Hormuz – a vital global shipping artery – key inputs such as oil, gas, fertiliser and essential feed components have been facing significant delays or sharp price increases. Leaders across the sector warn that without coordinated government intervention, domestic food production could face serious strain as a result.

Energy and fuel costs

Richard Griffiths, chief executive of the British Poultry Council (BPC), said the impact of global instability was already being felt. “Global events are once again challenging the resilience of our domestic food production. With chicken as half the meat this nation eats, we take our role seriously in ensuring people can access affordable food. The promise by government of a sector growth plan for poultry takes on new urgency and we call on ministers to accelerate its delivery.”

One of the most pressing concerns is the steep rise in energy and fuel costs. Liquified petroleum gas, widely used to heat poultry sheds, is particularly vulnerable to supply constraints. With costs rising across every link in the supply chain, producers are bracing for sustained financial pressure.

Feed additives and medication

Alongside this, the supply of key vitamins, minerals and amino acids for poultry has become increasingly uncertain. According to industry leaders, many micronutrient suppliers are unwilling to sign contracts because they cannot guarantee delivery.

“These factors are creating sustained upward pressure on the cost of poultry production,” the BPC said. “While some increases may be absorbed by the industry, others will inevitably have to be passed on to consumers.”

The possibility of medicine shortages also looms large, raising concerns for bird welfare and putting further strain on producers already grappling with recurring avian influenza outbreaks each year.

Global fertiliser trade and feed costs

The wider agricultural supply chain is also under significant pressure. Around one-third of global fertiliser trade passes through the affected region, and fertiliser production relies heavily on natural gas – itself subject to volatility.

Disruptions have driven fertiliser prices sharply higher, which is expected to increase feed costs, particularly for soy-based inputs. Given that feed accounts for the majority of poultry production costs, this is likely to have considerable downstream effects.

A growing dependence on foreign producers

These short-term shocks are compounding existing long-term challenges. Consumer demand for poultry is rising by 2-4% annually, yet planning barriers continue to stifle expansion of domestic production capacity. Imports, which have already grown by 7% year-on-year and are often produced to lower standards, are increasingly being relied upon to fill the gap. Industry leaders warn that without urgent action, the UK risks becoming ever more dependent on foreign producers, undermining national food security.

To safeguard the future of British poultry production, the industry is urging the government to convene the agri-food sector and develop a coordinated response.

With geopolitical pressures unlikely to ease in the near term, leaders are calling for a clear, long‑term strategy to build resilience and ensure that UK consumers can continue to access affordable, high‑quality poultry products.

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McDougal
Tony McDougal Freelance Journalist