Substantial price rises for chicken are inevitable due to rocketing feed costs, the British Poultry Council has warned.
The poultry industry is facing a huge £190m increase in feed costs alone, said Peter Bradnock, chief executive of the BPC.
Feed wheat harvests both in the UK and around the world were devastated by last year’s
heat wave which has led to the rise in the cost of cereal prices.
Bradnock said UK feed wheat, which makes up almost two-thirds of poultry diets, has doubled in the last 12 months.
He said that while forward contracts initially shielded producers from the increases, those contracts were now coming to an end and farmers were being hit with a 30% hike in feeding bills, with more rises looming in coming months. Other feed ingredient prices have also risen due to increased world demand and supply shortages. “Overall we estimate the industry is facing a £190m increase. It is quite simply a cost too far. Companies have been absorbing a whole range of inflationary costs over the years, but this increase cannot be met through even greater efficiencies on the part of farmers or processors.”
He said there was not likely to be any intervention by the government or Brussels. “Poultry producers have no option but to pass costs on in higher prices.”
That could mean a rise of 15-20% to the price of chicken, claimed Bradnock.
He added: “The increase is unavoidable and we are confident our customers and consumers will recognise this and view it as reasonable.”
Ed Bedington
The poultry industry is facing a huge £190m increase in feed costs alone, said Peter Bradnock, chief executive of the BPC.
Feed wheat harvests both in the UK and around the world were devastated by last year’s
heat wave which has led to the rise in the cost of cereal prices.
Bradnock said UK feed wheat, which makes up almost two-thirds of poultry diets, has doubled in the last 12 months.
He said that while forward contracts initially shielded producers from the increases, those contracts were now coming to an end and farmers were being hit with a 30% hike in feeding bills, with more rises looming in coming months. Other feed ingredient prices have also risen due to increased world demand and supply shortages. “Overall we estimate the industry is facing a £190m increase. It is quite simply a cost too far. Companies have been absorbing a whole range of inflationary costs over the years, but this increase cannot be met through even greater efficiencies on the part of farmers or processors.”
He said there was not likely to be any intervention by the government or Brussels. “Poultry producers have no option but to pass costs on in higher prices.”
That could mean a rise of 15-20% to the price of chicken, claimed Bradnock.
He added: “The increase is unavoidable and we are confident our customers and consumers will recognise this and view it as reasonable.”
Ed Bedington
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