The warning comes after reports from dairy farmers of energy costs rising by up to £1,000 ($1,368) a month, with costs expected to increase further.
Responding to the crisis, FUW Milk and Dairy Produce Committee chairman Dai Davies said, “The farming sector in general is already under huge pressure. The increase in energy prices, which in some cases have been reported to be an extra £1,000 a month for dairy businesses, is a blow for all in the industry.”
While farm businesses have different contracts to private holdings when it comes to their energy suppliers, the overarching problem remains the same.
“There will be many farm holdings who need to renew their energy contracts this year and they will no doubt be faced with hiked up prices. This in addition to higher feed and fertilizer prices could prove to be too much for some businesses,” Davies said.
The FUW said it has written to The Rt Hon Kwasi Kwarteng MP, Secretary of State for Business, Energy and Industrial Strategy, urging him to consider and implement policies to negate the severe impacts of rising energy prices on Welsh and UK businesses.