The Farmer Guardian reports that farmers are yet to feel the full effects of the hike in fuel costs and with feed and fertiliser prices rising on the back of it there could be a nasty surprise in store.
Ray Engley, energy secretary of the Road Haulage Association (which has a livestock and milk hauliers specialist group) said most members in the sector 'probably don't have a fuel escalator built in and wish they had'. He sayd the net result is that primary producers of milk and livestock have probably not yet seen the full impact of fuel cost increases, whether or not those costs wer passed back indirectly through processors and abattoirs.
Feed and fertiliser prices also incorporate an increasing haulage element. One major compounder says it is unlikely farmers have yet seen the full impact of current fuel prices on their feed bills.