The 2026 Balmoral Show in partnership with Ulster Bank returns next week and as farmers, producers, industry leaders and show visitors prepare for the event, Ulster Bank’s head of agriculture, Cormac McKervey has delivered a pre-Show briefing.
2026 marks Ulster Bank’s 17th year as principal sponsor of the Balmoral Show which Cormac describes as the “shop window of our local agricultural industry.”
In his outlook, Cormac gives an overview of the current health of farm businesses across NI and the various sub-sectors including dairy, beef, pork, poultry and grain. He also gives an insight into how many farmers and producers will be feeling as they approach the Balmoral Show after what has been a challenging 12 months for the sector.
“2025 was a remarkable year for farmers with unusually good weather and strong prices for almost all farm outputs. Approaching the 2026 Balmoral Show, the backdrop for farmers hasn’t been as positive, not least on the weather front with a wet spring interfering with many aspects of field work.
“Looking at farm gate prices, there has been a dip from where they were sitting 12 months ago and there has been a significant shock to the sector in terms of input costs, particularly around fuel, food and fertiliser. Agflation is currently around seven per cent which is more than twice the general rate of inflation which highlights the many ways that farmers and this industry are often on the receiving end of the first cuts and have to absorb shocks and bear many shocks themselves before these are passed on through the supply chain and to consumers.
“Output prices are on the slip in many sectors. Milk, which had an exceptionally good year in 2025, has reached an overproduction situation and as ever, when supply is greater than demand the price suffers. The price decrease may not have been as harsh as forecasters predicted but for many dairy farmers, it is sitting at or just below the cost of production.
“Beef prices too have come off their peak and winter finishers are nursing heavy losses. Market sources would suggest that while consumers are remaining loyal to UK beef, they are purchasing less of it because of the cost. Sheep are doing exceptionally well with strong prices and supply and demand well in sync and the same can be said for the poultry sector. Again, pigs continue to do well but there are some signs of a price reduction. That said, farmers know that when you compare the UK pork price with that of the EU, they are significantly better off.
“Looking at the arable sector, this has been one of the toughest areas for local farmers in recent years, heightened by poor harvests due to weather and relatively low grain prices, and as yet there does not appear to be any shoots of improvement. Oftentimes when oil prices increase, grain prices will follow but give the amount of grain still in stock, it’s difficult to predict that we will see this same trajectory repeated.”
Commenting then on how this is impacting farm businesses overall, Cormac went on to say that at a macro level, things are stable.
“The current level of bank finance out to the agriculture sector £950m and the level of deposits with banks is sitting at £640m, so at a macro level, the book is strong. That said, we recognise that on individual farms, there may be struggles and a lucrative year in 2025 can’t shield your cash flow from the entirety of the price shocks we are seeing today.”
“As always, though, farmers and producers are resilient, and I have no doubt they will be coming to the Balmoral Show with a positive attitude and looking forward to a great day out. In many ways, Balmoral is the shop window for the industry here bringing consumers, farmers, and everyone involved with the supply chain under one roof.
“We are proud of our longstanding association with the event and looking forward to a great few days at the show.”The Balmoral Show in partnership with Ulster Bank returns to Balmoral Park on Wednesday 13th May and runs until Saturday 16th. Information about tickets, show opening hours and daily timetables can be found at www.balmoralshow.co.uk
