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Poultry Industry United In The Face of Feed Cost Increases

09-Aug-2012

The NFU, BPC and BEIC have asked major retailers in the UK to recognise the impact of soaring commodity costs on the total production costs in the layer sector. In a letter co signed by all three organisations, they point out that the UK the poultry industry uses in excess of 5.5 million tonnes of compound feed every year.

Recent weeks have seen prices for wheat and soya rise rapidly due to drought conditions in the USA. The letter makes it clear that supermarkets have a part to play in maintaining a long term sustainable food chain and calls for them to be prepared to pass higher prices to customers.

The letter states that "Feed is the largest single cost item for poultry production accounting for approximately 60% of total costs."

In Scotland, according to the Scottish Egg Producer Retailers Association (SEPRA), the price paid by egg packers has gone up by 5p/dozen (around 6-7%), but with feed prices up by about £60/tonne since March, the cost of production has risen by over 9p/dozen, leaving producers more than 4p/dozen worse off.