Outlook 2026: Poultry assessment may help safeguard future

The past 12 months have seen a significant turnaround for the UK poultry sector, for both meat and eggs.

Most poultry businesses are now turning some form of quantifiable profit and generating surplus funds, which has been difficult to achieve in the recent past, according to consultants Victoria Moxham and Edward Calcott.

Sensible management of this is required if business proprietors are to focus on their long-term strategy, rather than making impulsive short-term decisions that may not be beneficial for the longer term.

See also: Farmers Weekly Awards: 2025 poultry farmer of the year

Spend some time tax planning with your accountant and relevant professionals. Avoid the easy route of buying a tractor for the capital allowance offset. Do you really need it?

Take a good look around the farm – physically, financially, environmentally, and technically. Look for and improve weaknesses in areas that are likely to drive worthwhile returns.

All-round review

Consider all aspects of the business, starting with the finances.

What investment has been neglected in the past five years that could be looked at? Which costs have increased and how can they be managed?

Speak to your bank manager; what options are there to repay debt early if possible? Could you put some money away in a business savings account, or explore pension options for the future?

Now might be the time to take a close look at your energy policies. Should you expand your solar while energy prices are low and panel prices are cheaper than three years ago?

Have you assessed the option of battery storage? Are there any ways you can improve heat efficiency?

Contented staff will perform better and become a valuable asset to any business. What can be done to improve working conditions on the farm for regular labour and contractors?

It is worth remembering the smaller, but important points. Does the wheel wash really work every time? Can you improve the visual aesthetics of the farm?

It can be easy to have a blinkered vision of your own business when you are involved with it every day. Invite an independent third party to look around to provide a second opinion.

This could be a consultant, an industry stakeholder, or a farmer friend to whom you can offer to return the favour.

Use the current buoyancy of the sector to reinvest for the long term of your business, but do not forget the pain of the past.

Building costs

A high proportion of broiler sheds are more than 30 years old, but this does not mean that performance is necessarily reduced – it depends far more on the skill of the farmer or operator than on the age of the housing.

Some businesses are looking to expand while the sector is strong. Those who are in this process may be in for a shock when receiving building and installation quotes.

A further consideration with new builds is that as payments through the renewable heat incentive are no longer available, the return has to come entirely from poultry production.

In addition, the planning landscape is very challenging for poultry and adds considerable cost on top of the build itself. 

Agriculture is not alone with cost inflation. Ensure you thoroughly read quotes, and compare them on an equal standing. Invite yourself to see 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.

Spend as much time as possible assessing the numbers, the payback, the returns, and the depreciation. A sensitivity analysis is the most important thing you can do when carrying out an investment appraisal.

Not so long ago, electricity was 70p/KWh, feed was nearing £500/t and the free-range egg price was less than £1.20/doz.

It is good to have moved on from those days, but the world is a volatile place and, with the UK being a small player in global terms, things can change quickly.

The poultry sector is renowned for being self-sufficient and not reliant on subsidy. Those who fail to look forwards proactively may risk being left behind.