May 15, 2006

 

UK poultry industry calling for increased prices and relaxed regulations
 

 

UK's National Farmers Union (NFU) has called for an 8 percent increase in poultry prices and warned that the GBP 3 billion (US$5.6 billion) British chicken industry, would not survive current conditions.

 

Poultry prices have been sliding for the past few years while costs like energy and labour have increased, the NFU stated.

 

To make matters worse, laws such as the new Integrated Pollution Prevention and Control Regulations (IPPC) are putting more restrictions on the poultry industry.

 

The IPPC legislation aims to control air, land and water emissions, promote energy efficiency and regulate consumption of raw materials.

 

The NFU is asking for a delayed implementation of the IPPC as introduction at this time could spell the end for many producers.

 

The NFU also called for a sharing of the costs and a waiver of the charges should the regulations be implemented.

 

It estimates that a medium-sized poultry farmer rearing 200,000 birds could lose about GBP 150,000 (US$282,000) a year with current conditions.

 

Farmers are calling for higher payments as the industry is hit by bird flu and cheaper imports, said the NFU.

 

The spread of the virus to the UK has worsened fears about safety.

 

Tesco, the UK's biggest retailer, suffered a 5 percent drop in poultry sales when the first UK case was confirmed last month.

 

Grampian Country Food Group has said it would cut 80 jobs, or one-third of the company's workforce to reduce production at its plant in Banff.

 

The UK chicken industry is experiencing poor trading conditions and strong competition, Alasdair Cox, the company's spokesperson said.

 

Meanwhile, organic and free range chicken markets are on the rise, the NFU stated.

Six percent of chickens produced in the UK is free range while 3 percent is organic.

 

Drops in consumption in the EU has led to a 300,000 tonne stockpile across the bloc, according to EU estimates.

 

The crisis has also affected the US$42 billion feed industry in Europe, with losses estimated at 40 percent in some countries, according to the FAO.