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Drought Raises Feed Prices 12 Per Cent

3 April 2012, at 12:51pm

SPAIN - Feed prices have seen a dramatic rise in prices since January, up 12 per cent to €0.33 per kilo.

The Agri-Food Cooperatives has said that due to a lack of grass caused by the drought feed prices have rocketed, reports Besana.

Increasing production costs and a lack of profitability are making livestock production unsustainble, the Cooperative said.

For the dairy industry, feed costs account for 70 per cent of total costs, and have increased 50 per cent since 2010.

The opposite is happening to milk prices though, with the price paid to producers and sold to consumers dropping.

"This demonstrates a serious imbalance of the value chain," said the Cooperative. It is supporting a true rebalancing of the sector, with increased power for producers in the market.