Stormont's pollution plan presents poses ‘very significant challenge' to agri sector

Belfast Telegraph

4 days ago

Agri firm Fane Valley comes in at the number 30 spot in this year's Ulster Business Top 100 Northern Ireland Companies 2025, in association with KPMG
The last 12 months have proved a mixed picture for Northern Ireland's agri sector.
Last year began with poor weather, and farm gate prices, which created 'challenges' for customers and shareholders of diary co-ops and producers, such as Fane Valley, according to its chief Trevor Lockhart.
'As summer turned into autumn, the weather improved, and farm gate pries began to recover – that period through autumn into winter proved to be a positive trading period, for farmers,' he told Ulster Business.
That helped it increase its sales and business performance.
It's latest published turnover sits at £342.4m, for the year ending December 2023, with pre-tax profits of just over £10m. That puts it in the number 30 spot in this year's Top 100.
Fane Valley remains one of Northern Ireland's largest dairy co-ops – with some 1,100 farming shareholders.
'[There have been] positive farm gate prices, and demand has continued into 2025… farmers and businesses have benefited from that positive trading environment.
'We have 1,100 farmer shareholders and relatively steady turnover over the last 10 years... between £350m and £400m, before we include Ready Egg group.
'The strategy of the group has been to focus on investment in higher value-added activities. Turnover today is lower than it was 10 years ago, when we were heavily invested in red meat and dairy processing, but our profits have improved significantly.'
It's also recently invested in the egg packaging and processing sector, with an interest in the Ready Egg group – another firm making this year's Top 100.
'That business packs 30 million eggs a week,' Trevor says. '[We are seeing] increased demand for egg, and egg-based products as consumers in various demographics seek to enhance protein in their diets.
But challenges remain for the firm, and the wider sector. The big debate and concern among the farming sector is around Stormont's proposed Nutrient Action Programme (NAP).
While in an early form, the proposals – which have been drafted by Agriculture Minister Andrew Muir – are linked to the Lough Neagh plan, with recommended revisions including making low emission slurry spreading equipment mandatory, and placing restrictions on the use of phosphorus fertiliser.
'The agri-food sector is very focused on the current NAP proposals,' Trevor says. 'The proposals in their current form present a very significant challenge to agriculture.
'The agri-food industry is very well aware of the issues that have to be managed, and very well aware of [working] towards solutions. But the proposals… are not properly grounded in science.'
He said the plans don't take into account the impact they could have the industry.
The primary concerns are centred around the level of surplus phosphorus, generated by the agri-sector, and how that is dealt with.
'In essence, most intensive farms in Northern Ireland – to comply in the current form – would require very significant amounts of land to sustain and be able to manage the waste or manure that arrives from farming activities,' Trevor says.
As for wider market demands, Trevor says he believes there is a growing demand for natural-based products, as consumer demand for heavily-processed plant-based alternatives begins to plateau.
'I believe there's a reflection as consumers understand supply chains which support plant based alternatives, which [often] rely on products such as soya-based substrate for protein. The initial perception didn't fully match with expectations.
'People have a preference for natural and less-processed food – and that's playing out on aisles in our supermarkets.'