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Retailers Urged to Consider Feed Cost Spike

by 5m Editor
27 July 2012, at 9:38am

UK - The costs of feed wheat, soyameal and corn have been climbing and are set to increase further. Rises in the first six month of 2012 suggest that feed costs will increase by £400 – £500 million this year, against a base of £1.4 billion.

The British Poultry Council (BPC), British Egg Industry Council (BEIC) and National Farmers Union (NFU) have sent a joint letter to the Asda, Co-op, Sainsbury, Marks & Spencer, Morrisons, Tesco and Waitrose.

Commenting on a letter sent to seven of the UK’s largest retailers, Peter Bradnock, Chief Executive of the British Poultry Council, said: “Feed makes up half the cost of an oven-ready chicken and is set to rise by £400 – £500 million across the industry over the course of 2012. To cope with rising consumer demand the UK poultry industry has invested in new capital infrastructure and a sustainable margin is vital to maintain this. We have therefore asked retailers to reflect the cost increases in their pricing considerations and promotional schedules for the next 12 months.”

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