July 18, 2007

 

Scottish producers want supermarkets to recognize rising feed costs

 

 

Scottish pig and poultry producers are struggling to cope with rises in feed costs and supermarkets are not aware of the burdens they bear, according to the National Farmers Union (NFU) Scotland.

 

The cost of pig production has risen by around 11 pence per kilogram (p/kg) compared to this time last year. However, the prices paid to farmers have risen by only around 3 pence.

 

NFUS has written to all the major supermarkets to make them aware of the pressure being felt at the farmgate.

 

Robin Traquair,Chairman of NFU Scotland's Pig and Poultry Committee and a pig producer from Midlothian, said that pig farmers are hugely concerned at the rising feed costs.

 

Traquair said the damage is felt not only in the pig sector but in the poultry meat and egg sectors as well. Customers need to realise that costs have gone up dramatically, he added.

 

A lot of producers are losing money at the moment and drops in spot prices are hurting them even more, he said.

 

Traquair said supermarkets have to understand that thier strong messages of quality food is supported by suppliers, but they would also to recognise that the cost of production has risen sharply and they would have to ease the pressure at the farm gate.

 

While the media has reported on the impact of price increases of wheat on bread, it has paid scant attention to the effects the price increases on grains had on meat,  Chairman of the NFUS North East region Philip Sleigh said.

 

Nobody is recognizing the losses producers are suffering to put meat on the market, he added.

 

Instead of increasing retail prices and charging consumers more, supermarkets could simply make a small dent in their very large margins, he said.