June 9, 2008

US chicken prices could rise 10 percent by summer
 
 

Chicken prices could rise 10 percent by summer due to ethanol production, according to James Perdue, chairman of poultry company Perdue Farms Inc.

During a Maryland Economic Development Association meeting, Perdue said chicken prices will go up as farmers are paying more for poultry feed.

The main component of poultry feed is corn and more than a third of US corn is going to be used for ethanol production, Perdue said. Due to this reason, it is very likely that chicken prices could increase by 10 percent or more in this summer, Perdue said.

Ethanol production has been blamed for food prices inflation nationwide as corn and other grains are a major feed component in meat and dairy production.