UK poultry farmers urged to reinvest poultry profits wisely in 2026
Most businesses are now creating some form of quantifiable profit following a significant upward turnaround for the UK poultry sector over the past 12 months.
In its annual Outlook review, farm consultants Andersons said the majority of producers were generating surplus funds – something which has been difficult to achieve in the recent past.
Andersons’ poultry consultants Edward Calcott and Victoria Moxham urged producers to be sensible with their cash. “Sensible management of this is required if the proprietors of the business are to focus on their long-term strategy, rather than making impulsive short-term decisions that may not be beneficial for the longer term.”
The consultants urged poultry producers to:
- Avoid the easy route of buying a tractor for the capital allowance set-off.
- Take a good look around the farm and work out where the physical, financial and environmental weaknesses are and how they could be improved.
- Think about expanding solar while energy prices are low and panel prices are cheaper than they were 3 years ago.
- Consider battery storage and any other ways of improving heat efficiency.
- Look at ways to enhance the visual aesthetics of the farm.
- Take into account the working conditions of the farm for staff and contractors and see what could be improved.
- Analyse the costs that have increased and what you can do about them.
- Speak to your bank manager and see if there are options to repay any debts early.
- Consider putting money away in a business savings account or explore pension options for the future.
- Invite an independent third party to look around to give you a second opinion.
- Use the current buoyancy of the sector to reinvest for the long-term success of your business.
Calcott and Moxham warned businesses that were looking to expand to prepare for a shock when receiving build and installation quotes. “Agriculture is not alone with cost inflation. Ensure you thoroughly read quotes and compare them on an equal standing.”
They added: “Invite yourself to assess other projects and speak to the business owners. Gain insight from their experience with contractors rather than relying on a sales representative to influence you. Spending as much time as possible assessing the numbers, the payback, the returns, the depreciation. A sensitivity analysis is the most important thing you can do when carrying out an investment appraisal,” they said.
