Poultry: Farms

(asked on 27th February 2023) - View Source

Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what steps the Government is taking to support poultry farmers with increased energy costs.


Answered by
Mark Spencer Portrait
Mark Spencer
Minister of State (Department for Environment, Food and Rural Affairs)
This question was answered on 6th March 2023

The UK poultry sector operates in an open market and the value of poultry commodities is established by those in the supply chain including farmers, processors, wholesalers, retailers, and consumers. We have already seen supply chains adjusting to address the challenges related to rising input costs, including feed, fuel, fertiliser and energy costs.

Since November 2022, the poultry industry has been able to access the Energy Bill Relief Scheme (EBRS). In January 2023 the Government announced the Energy Bills Discount Scheme (EBDS) that will replace EBRS when it comes to an end on 31st March 2023. This new scheme will run until 31st March 2024.

Following the review of EBRS, beyond the broad baseline support provided for all sectors under EBDS from 1st April 2023, the government will target higher levels of support at the most energy and trade intensive sectors (ETIIs) – which are primarily manufacturing businesses. Poultry meat processing falls within the remit of the Government’s Energy Intensive Industries exemption scheme and will therefore also qualify for the enhanced level of ETII support.

Within the context of the wider economy, we do not consider there is a case for further financial support to the poultry sector at this time. We continue to keep the sector under close review, including through the UK Agriculture Market Monitoring Group, which monitors UK agricultural markets including price, supply, inputs, trade and recent developments.The UK poultry sector operates in an open market and the value of poultry commodities is established by those in the supply chain including farmers, processors, wholesalers, retailers, and consumers. We have already seen supply chains adjusting to address the challenges related to rising input costs, including feed, fuel, fertiliser and energy costs.

Since November 2022, the poultry industry has been able to access the Energy Bill Relief Scheme (EBRS). In January 2023 the Government announced the Energy Bills Discount Scheme (EBDS) that will replace EBRS when it comes to an end on 31st March 2023. This new scheme will run until 31st March 2024.

Following the review of EBRS, beyond the broad baseline support provided for all sectors under EBDS from 1st April 2023, the government will target higher levels of support at the most energy and trade intensive sectors (ETIIs) – which are primarily manufacturing businesses. Poultry meat processing falls within the remit of the Government’s Energy Intensive Industries exemption scheme and will therefore also qualify for the enhanced level of ETII support.

Within the context of the wider economy, we do not consider there is a case for further financial support to the poultry sector at this time. We continue to keep the sector under close review, including through the UK Agriculture Market Monitoring Group, which monitors UK agricultural markets including price, supply, inputs, trade and recent developments.

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