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Feed Price Increases Will Push Up Retail Poultry Price

25 July 2012, at 10:30am

UK - A jump in the price of poultry meat in shops is predicted as producers face big hikes in the cost of feed ingredients.

“British poultry producers are coming under real pressure from global price rises. UK feed wheat has leapt 20 per cent in the last month alone and looks set to rise further. Soyameal, the other main poultry feed ingredient, has risen to an unprecedented high level, up over 65 per cnet in the last six months, due to bad weather and lower expected harvest. Feed already makes up half the cost of an oven-ready chicken so it is it is clear that cost increases of this size will inevitably mean higher prices,” said Peter Bradnock, Chief Executive of the British Poultry Council.

“The cost of corn, the other main global poultry and livestock feed crop, is also climbing. Corn and wheat prices are directly related in international markets and both are now kept higher by the huge volumes of these crops going into subsidised biofuels production worldwide. In this demand situation, the forecast of lower crop yields is now pushing prices way up,” said Mr Bradnock.

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