UK poultry producers are facing a growing squeeze on profitability and productivity as labour shortages, regulatory pressure and the challenge of turning farm data into usable decisions combine, according to a new industry report.
The Food for Thought: Shaping Sustainable Farming Futures 2026 report from HCR Law, highlights how poultry businesses, already operating on tight margins, are being affected by structural issues across farming.
One big challenge is the rapid expansion of on-farm technology, particularly in broiler production, where modern sheds generate vast amounts of performance data. However, translating that information into practical gains is proving difficult.
Jonty Hay, a Herefordshire poultry and beef farmer, contributed to the report and said the scale of data now available to producers risks becoming a burden rather than a benefit.
“All our broiler sheds are climate-controlled and the data we capture covers environmental factors, bird growth and water consumption,” he said. “The challenge comes when we try and analyse the data. Because the dataset is so monstrous the challenge is making the outcome useable on-farm and in our system.”
This is one of the main findings in the report. Agri-tech is often presented as a solution to labour shortages and efficiency challenges, but there are also problems in making use of it properly.
The report suggests that without clearer returns on investment, many producers remain hesitant to commit further capital to technology. Hay warned that uncertainty over whether systems deliver measurable benefits is a major barrier.
“The biggest danger… is that you spend time, money and energy on something that you are not sure is making a practical difference,” he said. “There needs to be a tangible return on the investment.”
Labour
Labour availability also continues to weigh heavily on poultry businesses. The sector relies on a mix of permanent skilled staff and seasonal labour, particularly for processing and handling roles. Yet immigration routes remain limited, with the Seasonal Worker visa only partially covering poultry production needs.
The report notes that workforce shortages now extend beyond manual roles into technical positions, including those required to manage increasingly complex, data-driven systems. This creates a double pressure: farms must both recruit and upskill staff while also investing in automation.
At the same time, regulatory burdens are adding to cost pressures. Poultry producers operate under some of the strictest animal welfare and food safety standards globally. While these are seen as a source of pride, the report highlights concerns that imported poultry products are not always held to equivalent standards.
This imbalance risks undercutting domestic producers, particularly in price-sensitive markets such as foodservice and public procurement. The report cites examples of imported chicken from Thailand being used in school meals.
Egg marketing
For egg producers, regulatory enforcement is another flashpoint. The report points to the application of egg marketing regulations in the UK, which has led to stricter oversight than in many European countries. Producers argue this creates unnecessary costs and, in some cases, food waste.
Supply chain dynamics further complicate the picture. Poultry producers, like other livestock sectors, are often “price takers,” with limited power to negotiate contracts. The report warns that rigid agreements can leave farmers exposed to market volatility, while retailers and processors pass risk down the chain.
Despite these challenges, the report identifies opportunities for the poultry sector, particularly through better integration of technology, improved data analysis tools and stronger policy support.
Hay expressed cautious optimism about the role of artificial intelligence in helping farmers unlock value from existing data streams.
He said advances in AI could help bridge the gap between “monstrous” datasets and practical decision-making, making agri-tech more accessible and effective on farm.
There is also hope that the next generation of farmers will be more comfortable adopting digital tools. “I’m sure my daughter will grab agri-tech with both hands,” he said, though he cautioned that the industry must ensure systems deliver real-world benefits.
Ultimately, the report concludes that poultry producers, like the wider farming sector, need clearer Government policy and fairer supply chains if they are to expand production and strengthen UK food security.
Without those changes, it warns, the risk is that domestic poultry output could stagnate or decline, increasing reliance on imports at a time of growing global instability.