FDBusiness.com

Poultry Price Rises Inevitable

 Breaking News
  • Year of Considerable Progress For Dairy Crest Dairy Crest, the UK dairy group, increased revenue by 10% to £456.8 million and adjusted profit before tax increased by 2.8% to £62.3 million for the year ended 31 March 2018, compared with the previous year. Dairy Crest’s Cheese & Functional Ingredients business increased revenue by 8.8% to £277.2 million while revenue at the Butters, [...]...
  • Edrington Unveils the New Home of The Macallan Edrington, the international premium spirits company, has revealed the new distillery and visitor experience for The Macallan brand. The new distillery and visitor experience is located on the stunning Easter Elchies estate in Scotland, which has been home to the leading luxury single malt since 1824. From humble beginnings, the brand has risen to become [...]...
  • Nestlé Strengthens its Research Capabilities in Switzerland Nestlé has announced changes that further strengthen its research and development operations, the largest of any food company worldwide. Nestlé will bring together its two scientific discovery units, the Nestlé Research Center and the Nestlé Institute of Health Sciences, to build one impactful organization, Nestlé Research. The combination of two world-renowned research facilities with highly [...]...
  • Algaia Receives €4 Million Boost Algaia, will accelerate development and install a new specialty seaweed extract production unit at its Lannilis (Brittany-France) manufacturing facility dedicated to specialty algae extracts. The company’s main shareholder, Maabarot Products, has injected an additional €4 million in equity to support further expansion of the production facility and innovation center located in Saint-Lo (Normandy-France). Algaia works with local [...]...
  • Smarter Factories – Safer Working In food produce environments and packhouses, the benefits of automation when it comes to workforce health and safety are uncontended. From eliminating arduous and repetitive tasks to working uninterrupted within inhospitable chilled settings, robots are most certainly the future. Case loading specialist Brillopak and industrial automation pioneer Omron explore how smart robots, hardware and software can [...]...

Poultry Price Rises Inevitable

October 29
13:50 2010

Expectation of a dramatic shortfall in world feed grain harvests, coupled with US Government upping the level of corn-based ethanol in petrol, has sent corn and wheat prices soaring higher again, and with it the production costs of poultry and other grain based livestock and foods. “The cost hikes are so large that they cannot be absorbed by UK farmers or processors through greater efficiencies and inevitably must be passed on in higher prices,” says Peter Bradnock, chief executive of the British Poultry Council.

Feed is the biggest cost in getting poultry meat to the consumer’s table, and wheat or corn, and soya are the main ingredients in poultry feed. Since the beginning of July wheat prices have soared by over 50% and the soya prices jumped over 30%. Corn, which is used instead of wheat in many main producing countries, leapt by 60% in the last three months, driving up not just the cost of poultry meat but also other livestock products and grain based staple foods across the world.

“This is hitting poultry and other food producers worldwide and cannot be sidestepped in the UK through imports,” he adds. Indeed, members of the International Poultry Council (IPC) are strongly concerned about the rising cost of feed grains on world markets.

Several factors are contributing to the grain price hikes and increased volatility, including too much or too little rain in some countries. But the big new factor that will hold prices up, even when favourable climatic conditions return, is the massive and growing demand for corn, wheat and other feed crops for fuels which is pushing up prices and hitting those dependent on these crops for feed and food. The US Government has just announced a 50% increase in the level of bioethanol, which is derived from corn, permitted in petrol in the USA.

“We cannot sit and wait in the faint hope that these costs eventually fall. Our birds have to be fed now at much higher cost and there are no cheaper feed options available. I am confident that retailers and other customers understand the enormous pressure on producers and the crucial need to increase the price they pay for their poultry meat,” Peter Bradnock explains.

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 1, 2018Gluten Free Expo Slovakia
  • June 3, 2018Vinoble
  • June 4, 20188th WSO World Congress on Stevia Tasteful 2018
  • June 17, 2018The Excellence of Italian Food and Wine (Bellavita Expo)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements