July 13, 2007

 

Substantial and long term price increase for UK chicken inevitable

 

 

The British Poultry Council has warned that a long term and substantial price increase for poultry meat in the UK is inevitable given the rise in global grain prices.

 

In an emergency meeting yesterday, the BPC forewarned retailers and other customers on the higher prices they would have to pay to poultry companies and farmers.

 

The BPC is also supporting calls within the EU for policies to free up more land for cereal growing.

 

Feed wheat costs have grown 40 percent on-year and almost 70 percent higher than in 2005, according to the BPC.

 

Two third of UK's poultry rations consists of wheat while prices of other components of chickenfeed, such as soymeal, have also soared, the BPC said.

 

British poultry producers and processors have been unable to recover these costs, at current chicken prices, said Ted Wright, chairman of BPC. 

 

With production costs soaring, the industry is at a tipping point, he warned.

 

In recentyears, the British poultry sector has seen continued consolidation as companies tried to offset cost increases with greater efficiencies and economies of scale.

 

A substantial and long-term price rise is necessary to retain a viable UK poultry industry, Wright said. The UK would not be the only one affected, as global grain prices are rising, he noted.

 

Wright said he believed that British consumers would rather know they are supporting sustainable British production than pay more for imported frozen poultry meat.