British poultry producers are warning commodity price hikes could soon push up the retail price of eggs, chicken and other poultry meats in the supermarkets.
The British Poultry Council said poor weather and smaller-than-expected harvests had seen the cost of UK feed wheat rise by 20% in the past month, with soyameal up 65% in the past six months.
“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 chief executive Peter Bradnock.
The cost of maize – linked to the price of wheat on international commodity markets – had also risen, Badnock noted, pointing to rising demand for biofuels.
“In this demand situation, the forecast of lower crop yields is now pushing prices way up,” he said.
According to the Financial Times, poultry and egg producers have already written to supermarkets urging them to reflect rising feed prices in their pricing and promotional schedules.
Poultry and eggs become the latest sectors to point to the need for price rises in order to balance out soaring input costs. Pig producers have just finished an industry survey to gauge how rising feed prices are affecting producers’ intentions to stay in the industry and are calling for farmers to be paid more.
And dairy farmers have been staging high-profile protests over farmgate milk price cuts, which would force some to sell milk below the cost of production.