Energy Cost Savings for Farming and Food Production

The importance of reducing energy costs in the farming and food production industry cannot be overstated. Energy consumption (particularly when involving heating) makes up a major cost for these organisations, and that’s why many seek outsourced consultation for the best way to keep energy costs down, or to otherwise take advantage of available levies.
Furthermore, the cost of energy for a food production company dictates how much it costs to produce their products, as well as how much they can then sell them for. This creates a direct relationship between the cost of energy and the bottom-line profit made by these businesses.

At the time of writing (July 2022), profit margins are extremely slim for UK farming and food production companies due to the energy crisis in EU. Many organisations are struggling to breakeven. On top of this, sales are decreasing for these companies as everyday people prefer to spend money on ‘essentials’ (such as bread) than on eating healthily with produce like cucumber or tomatos.

In light of this, the need to reduce energy costs in farming and food production is greater than ever.

Energy cost savings for food production

Reduce energy consumption week-by-week

With all the businesses My Energy Consultants works with in the farming and food production sector, steps are taken every week to reduce energy consumption.
We provide weekly forecasts and cost calculations to show where the most energy is being consumed, and where it can be reduced to achieve cost savings. It is important that these calculations and forecasts consider how much a reduction in energy usage impacts the company’s ability to continue providing a certain production level – otherwise, energy costs may go down, but so too may revenue.

Farming and food production companies therefore need to know how much they are spending on their energy, versus all the steps they are taking to reduce energy consumption, and how much it is impacting their production. The best energy consultants provide this information so the optimum balance is identified and achieved.

Reducing heating costs and considering a move to self-generation

Heating is an integral part of maintaining farming and food production facilities. Heating often has the most significant impact on an operation (dependent on activity), which provides a massive opportunity for energy savings.

Heating in farming and food production is typically achieved using gas. However, many companies are recently considering moving to generating their own energy, such as through a Biomass Boiler or CHP. In this instance, My Energy Consultants completes the feasibility study, which involves:

  • Assessing whether self-generation will work for you
  • Considering how much it will cost
  • Calculating the time it will take to achieve a ROI

We will also project manage the installation and help you to run these systems.

Energy cost savings for farming

Managing the Climate Change Levy

The Climate Change Levy applies to businesses in the agricultural and food production sectors, and is charged on ‘taxable commodities’ for heating, lighting and power purposes.

The right energy partner can keep one eye on the climate change levy, and ensure you are eligible to access it, on your behalf. This can include anything from submitting returns to updating you with your consumption versus target levels.

For an industry so reliant on energy, and in which profit margins are so critical, your farming or food production firm must cut costs and access discounts wherever it can. My Energy Consultants will ensure that you:

  • Access accurate energy data and submit returns
  • Handle any audits by the Climate Change Agency
  • Reduce your overall emissions
  • Unlock the financial benefits of the Climate Change Levy
  • Prove you have reduced your energy consumption

My Energy Consultants provide a regular report on whether farming and food production organisations is on-track for the energy targets required by the Climate Change Levy. We also write the initial application for the levy – so all the customer has to do is state their agreement.

Accessing the benefits of the climate change levy is not only financially beneficial, but provides Public Relations advantages, too.

Experienced energy consultants in farming and food production

My Energy Consultants has been working with farming and food production organisations for over 6 years, and has dozens of glowing case studies from this time working in the industry.

On one occasion, we secured a six-figure profit for a food production client by hedging, and then selling their energy back to them further down the line (when the price wasn’t at its peak). Considering this wasn’t even the client’s main business, they were absolutely ecstatic with the profit we secured for them.

Call us today to discuss how your farming / food production company can cut down energy costs on 0203 488 3000.